Provides credits under corporation business tax and gross income tax for qualified wages of certain disabled veterans.
Impact
If enacted, A3374 would amend the corporation business tax and gross income tax statutes in New Jersey to include these credits. It thus aims to enhance the economic landscape for veterans, aligning with state initiatives to support their reintegration into civilian life. The bill specifies that the eligible wages can only be claimed for veterans hired between January 1, 2017, and January 1, 2020, making its benefits limited in timeframe but potentially impactful to those affected.
Details
The definitions set within the bill establish what qualifies as a 'qualified disabled veteran' and what constitutes 'sustained employment,' further delineating the scope of the program. The term 'qualified disabled veteran' includes any resident who has been honorably discharged from the military and has a service-connected disability rating of 30% or more. This emphasizes the bill’s focus on benefiting those who have made significant sacrifices for their country. Furthermore, provisions allowing for the transfer of tax credits introduce additional financial flexibility, enabling businesses to manage their tax liabilities more effectively.
Summary
Assembly Bill A3374 proposes a tax credit program aimed at incentivizing businesses to hire qualified disabled veterans. Specifically, it allows employers to claim a credit equal to 15% of the wages paid to qualified disabled veterans, capped at $1,800 per veteran for each taxable year or privilege period. This program is designed to boost employment opportunities for disabled veterans who may face challenges re-entering the workforce after military service.
Contention
One notable area of contention involves the bill's provisions to prevent misuse of the tax credits. Such provisions state that businesses cannot claim the credits if they are simply displacing current employees to qualify for them. Critics may argue that while this is a useful measure to ensure the program’s integrity, it could potentially hamper businesses that genuinely want to support veterans but fear penalties if the credits are denied for close calls. Additionally, the need for a director's determination in cases of alleged employee displacement may create administrative hurdles for businesses.
The New Jersey Battlefield to Boardroom Act; provides corporation business tax credits and gross income tax credits for qualified wages of certain veterans.
The New Jersey Battlefield to Boardroom Act; provides corporation business tax credits and gross income tax credits for qualified wages of certain veterans.
The New Jersey Battlefield to Boardroom Act; provides corporation business tax credits and gross income tax credits for qualified wages of certain veterans.
The New Jersey Battlefield to Boardroom Act; provides corporation business tax credits and gross income tax credits for qualified wages of certain veterans.
Revises film and digital media content production tax credit program to include requirement for production of domestic original music and musical scores.