New Jersey Assembly Bill A2865

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24

Caption

Establishes "Recovery Tax Credit Program"; incentivizes hiring and continued employment of certain individuals in recovery from substance use disorder.

Impact

The program allows certified employers to claim a credit equal to $1 per hour worked by each eligible employee, up to a maximum of $2,000 per individual. However, these credits are contingent upon the employee working at least 500 hours within a taxable year and are subject to an overall annual cap of $2,000,000 in tax credits. This initiative is designed to promote job creation for those seeking reintegration into the workforce, specifically targeting individuals recovering from substance use disorders.

Summary

Assembly Bill A2865, known as the Recovery Tax Credit Program, seeks to incentivize the hiring and sustained employment of individuals recovering from substance use disorders in New Jersey. The bill establishes a program administered by the Division of Mental Health and Addiction Services, which offers tax credits to certified employers who hire eligible individuals. To qualify for these tax credits, employers must provide a supportive work environment, demonstrate a formal relationship with recovery providers, and maintain health insurance that meets specified criteria for their employees in recovery.

Conclusion

If passed, this legislation marks a significant step towards addressing substance use disorders more effectively within the job market. By offering resources and incentives to employers, the Recovery Tax Credit Program aims not only to foster employment for those in recovery but also to contribute to broader public health objectives surrounding addiction recovery and community reintegration.

Contention

Some potential concerns about the bill may stem from the eligibility requirements and the potential for misuse of tax credits. There may be debates surrounding how effectively the program can meet the needs of both employers and employees, particularly regarding the assessment criteria for determining employer certification and the adequacy of the provided support for individuals in recovery. Additionally, questions may arise about the capability of the state to monitor compliance and effectiveness, given the program's reliance on employer certification and claims for credits.