The New Jersey Battlefield to Boardroom Act; provides corporation business tax credits and gross income tax credits for qualified wages of certain veterans.
The bill aims to boost employment opportunities for veterans and facilitate their transition into civilian life. By providing financial incentives, the act seeks to promote the hiring of veterans in the state, aligning with broader public policy goals of recognizing the contributions of military personnel. Employers must offer comprehensive veteran support services and engage in regular recruitment efforts directed at veterans and their families. These stipulations are designed to ensure the intent of the credits extends beyond mere financial benefit, fostering a supportive work environment for veterans.
Senate Bill 990, titled 'The New Jersey Battlefield to Boardroom Act', introduces tax credits to encourage the hiring of qualified veterans by New Jersey employers. This legislation offers a corporation business tax credit and a gross income tax credit to employers based on wages paid to veterans who meet specific criteria. The credits amount to 10% of qualified wages, capped at $1,200 per veteran annually, and are available for tax years from January 1, 2020, to January 1, 2024. To benefit from these credits, employers must adhere to stringent guidelines including hiring a minimum percentage of veterans and ensuring ongoing employment for certain hired veterans.
Notably, the bill includes measures to prevent misuse of the credits, empowering the Director of the Division of Taxation to recapture credits if it is determined that employers replaced existing employees with veterans primarily to exploit the credits. Additionally, the requirement that 25% of new hires in a credit year must be veterans imposes a significant burden on employers. Opponents may argue that these stipulations could discourage hiring practices or that constraining tax credits to specific employment patterns could complicate the hiring decisions for businesses and potentially affect non-veteran employment.