New Jersey Assembly Bill A4801

New Jersey 2024-2025 Regular Session

• Introduced: 9/19/24
• Refer: 9/19/24

Caption

Directs DOLWD to establish regional farm wage; provides corporation business tax credits and gross income tax credits to farm employers paying certain farm worker wages.

Impact

The bill includes provisions for Corporation Business Tax (CBT) credits and Gross Income Tax (GIT) credits for farm employers based on the so-called 'qualified compensation.' This amount is defined as the difference between wages paid to employees above the average farm wage and what would have been paid should they receive the established regional farm wage. The maximum credit can reduce a farm employer's tax liability by up to 50%, thereby potentially lowering their overall tax burden and encouraging employment in the agricultural sector.

Summary

Assembly Bill A4801 was introduced in New Jersey, aiming to provide tax credits to farm employers who pay certain wage rates to their employees. Under this bill, the Commissioner of Labor and Workforce Development is required to establish a 'regional farm wage' by averaging agricultural wage data from nearby states such as Pennsylvania, New York, and Delaware. This approach is intended to ensure that the wages offered in New Jersey remain competitive and reflective of regional standards, thereby supporting local farm workers.

Contention

While advocacy for the bill by certain legislators highlights its intent to bolster the agricultural sector in New Jersey, some concerns arise. Critics may argue that establishing a minimum wage based on regional standards could disproportionately affect small farm operators who may struggle to meet increased payroll without corresponding revenue increases. Furthermore, the complexity of calculating and applying for these tax credits could lead to confusion among eligible employers, potentially negating some intended benefits, particularly for smaller farming enterprises.