(Sponsorship Updated As Of: 2/3/2022)
ASSEMBLY, No. 681
STATE OF NEW JERSEY
220th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2022 SESSION
Sponsored by:
Assemblyman ANTHONY S. VERRELLI
District 15 (Hunterdon and Mercer)
Assemblyman DANIEL R. BENSON
District 14 (Mercer and Middlesex)
Assemblyman RAJ MUKHERJI
District 33 (Hudson)
Co-Sponsored by:
Assemblywoman Sumter, Assemblymen Torrissi and Umba
SYNOPSIS
Allows credit against corporation business tax and gross income tax liability
for employing persons with a developmental disability.
CURRENT VERSION OF TEXT
As reported by the Assembly Community Development and Affairs
Committee with technical review.
A681 VERRELLI, BENSON
2
AN ACT allowing a credit against the corporation business tax and 1
the gross income tax for employing persons with a 2
developmental disability, supplementing P.L.1945, c.162 3
(C.54:10A-1 et seq.) and Title 54A of the New Jersey Statutes. 4
5
BE IT ENACTED by the Senate and General Assembly of the State 6
of New Jersey: 7
8
1. a. A taxpayer shall be allowed a credit against the tax 9
imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) in 10
an amount equal to 10 percent of the salary and wages paid by the 11
taxpayer during the privilege period to an employee with a 12
developmental disability. 13
For purposes of this section, “employee with a developmental 14
disability” means an employee of the taxpayer who has a 15
developmental disability as defined in subsection b. of section 3 of 16
P.L.1985, c.145 (C.30:6D-25) and for who the Division of 17
Developmental Disabilities in the Department of Human Services 18
has declared eligible for its services. 19
b. The credit allowed pursuant to this section shall not exceed 20
$3,000 for each employee with a developmental disability, and shall 21
not exceed a total credit of $60,000 for the taxpayer’s privilege 22
period. 23
c. The director shall prescribe the order of priority of the 24
application of the credit allowed under this section and any other 25
credits allowed by law against the tax imposed under section 5 of 26
P.L.1945, c.162 (C.54:10A-5). The amount of the credit applied 27
under this section against the tax imposed pursuant to section 5 of 28
P.L.1945, c.162 (C.54:10A-5) for a privilege period, together with 29
any other credits allowed by law, shall not reduce the tax liability to 30
an amount less than the statutory minimum provided in subsection 31
(e) of section 5 of P.L.1945, c.162 (C.54:10A-5). Any remaining 32
credit shall not be carried forward to another privilege period. 33
d. A taxpayer shall not be allowed a credit pursuant to this 34
section and pursuant to section 1 of P.L.2005, c.318 (C. 54:10A-35
5.38) for the same employee in the same privilege period. 36
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2. a. A taxpayer shall be allowed a credit against the tax 38
otherwise due pursuant to “New Jersey Gross Income Tax Act,” 39
N.J.S.54A:1-1 et seq., in an amount equal to 10 percent of the 40
salary and wages paid by the taxpayer during the taxable year to an 41
employee with a developmental disability. 42
For purposes of this section, “employee with a developmental 43
disability” means an employee of the taxpayer who has a 44
developmental disability as defined in subsection b. of section 3 of 45
P.L.1985, c.145 (C.30:6D-25) and for who the Division of 46
Developmental Disabilities in the Department of Human Services 47
has declared eligible for its services. 48
A681 VERRELLI, BENSON
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b. The credit allowed pursuant to this section shall not exceed 1
$3,000 per employee with a developmental disability, and shall not 2
exceed a total credit of $60,000 for the taxpayer’s taxable year. 3
c. The order of priority of the application of the credit allowed 4
pursuant to this section and any other credits allowed pursuant to 5
the “New Jersey Gross Income Tax Act,” N.J.S.54A:1-1 et seq. for 6
a taxable year shall be as prescribed by the director. The amount of 7
the credit applied under this section against the tax imposed for a 8
taxable year, together with any other credits allowed by law, shall 9
not reduce the tax liability to an amount less than zero. Any 10
remaining credit shall not be carried forward to another taxable 11
year. 12
d. A business entity that is classified as a partnership for 13
federal income tax purposes shall not be allowed the credit directly, 14
but the amount of credit of a taxpayer in respect of a distributive 15
share of partnership income shall be determined by allocating to the 16
taxpayer that proportion of the credit acquired by the partnership 17
that is equal to the taxpayer’s share, whether or not distributed, of 18
the total distributive income or gain of the partnership for its 19
taxable year ending within or with the taxpayer’s taxable year. 20
A taxpayer that is a New Jersey S corporation shall not be 21
allowed the credit directly, but the amount of credit of a taxpayer in 22
respect of a pro rata share of S corporation income shall be 23
determined by allocating to the taxpayer that proportion of the 24
credit acquired by the New Jersey S corporation that is equal to the 25
taxpayer’s share, whether or not distributed, of the total pro-rata 26
share of S corporation income of the New Jersey S corporation for 27
its privilege period ending within or with the taxpayer’s taxable 28
year. 29
e. A taxpayer shall not be allowed a credit pursuant to this 30
section and pursuant to section 2 of P.L.2005, c.318 (C.54A:4-11) 31
for the same employee in the same taxable year. 32
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3. Notwithstanding any provision of the “Administrative 34
Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.) to the contrary, 35
the Director of the Division of Taxation is authorized to adopt 36
immediately upon filing with the Office of Administrative Law such 37
rules and regulations as are necessary to effectuate the provisions of 38
this act, which shall be effective for a period not to exceed 18 months 39
following the date of filing and may thereafter be amended, adopted, 40
or readopted by the director in accordance with the requirements of 41
P.L.1968, c.410 (C.52:14B-1 et seq.). 42
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4. This act shall take effect immediately and apply to taxable 44
years and privilege periods beginning on or after January 1 next 45
following the date of enactment. 46