ASSEMBLY, No. 1146
STATE OF NEW JERSEY
Introduced Pending Technical Review by Legislative Counsel
PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION
By Assemblyman COHEN
An Act providing a credit against the corporation business tax for certain corporate taxpayers that provide health care benefits to their employees and supplementing P.L.1945, c.162 (C.54:10A-1 et seq.)
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. A taxpayer who employs no more than 25 employees in the fiscal or calendar accounting year and provides health care benefits for each employee shall be allowed a credit as provided herein against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5). The credit shall be an amount equal to 25% of the cost of providing health care benefits to employees during that accounting year.
b. The tax imposed for an accounting year pursuant to section 5 of P.L.1945, c.162, shall first be reduced by the amount of any credit allowed pursuant to section 19 of P.L.1983, c.303 (C.52:27H-78), and then by any credit allowed pursuant to section 42 of P.L.1987, c.102 (C.54:10A-5.3), prior to applying any credits allowable pursuant to this section. The amount of the credit claimed in the accounting year in which the cost is incurred shall not exceed 50% of the tax liability which otherwise would be due that year, and shall not reduce the amount of the tax liability to less than the statutory minimum provided in subsection (e) of section 5 of P.L.1945, c.162 (C.54:10A-5).
c. As used in this section:
"Employee" means an individual who has been employed by an employer for not less than six months, works not less than 30 hours per week, and performs services for remuneration for an employer.
"Health care benefits" means medical, surgical, and hospital benefits.
2. The Director of the Division of Taxation in the Department of the Treasury shall, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), promulgate regulations necessary to effectuate the purposes of this act.
3. This act shall take effect immediately and be applicable to fiscal or calendar accounting years beginning on or after January 1 of the year next following its enactment.
STATEMENT
This bill creates a corporation business tax credit for certain incorporated small businesses that provide health care benefits for their employees. The credit cannot reduce the employer's tax liability below the minimum corporate tax required by law.
This bill is intended to encourage certain incorporated small businesses to provide health care benefits for their employees.
Provides tax credit for certain corporate taxpayers that provide health care benefits to employees.