ASSEMBLY COMMUNITY SERVICES COMMITTEE

STATEMENT TO

ASSEMBLY, No. 1173

with committee amendments

STATE OF NEW JERSEY

DATED: JUNE 3, 1996

      The Assembly Community Services Committee reports favorably and with committee amendments Assembly Bill No. 1173.

      As amended, this bill provides for a tax credit under the corporation business tax for certain corporate taxpayer's support of a licensed child care service for their employees' children, or who have paid part or all of the cost of outside child care services for children of employees. The credit is equal to 25% of expenses incurred. The credit may be taken in cooperation with other businesses involved in the same child care center service. This will act as an incentive for smaller businesses to form a consortia and then be able to provide child care for their employees.

      The committee amendment is technical in nature and changes the effective date so that it is applicable to tax years beginning on or after January 1, 1996.

      This bill was prefiled for introduction in the 1996-1997 session pending technical review. As reported, the bill includes the changes required by technical review which has been performed.