SENATE, No. 435

 

STATE OF NEW JERSEY

 

INTRODUCED JANUARY 18, 1996

 

 

By Senator CIESLA

 

 

An Act providing a corporation business tax credit for certain wages paid to workers with cystic fibrosis, 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 shall be allowed a credit against the tax imposed by P.L.1945, c.162 (C.54:10A-1 et seq.), in an amount equal to 50% of the gross wage, salary or compensation paid by the taxpayer during the privilege period to a new employee with cystic fibrosis in the employee’s first year of employment, up to a maximum credit of $2,500 per affected employee and an amount equal to 20% of the gross wage, salary or compensation paid by the taxpayer to the employee in the employee’s second year of employment up to a maximum credit of $1,000 per affected employee.

    b. The credit allowed under subsection a. of this section for a privilege period, shall not reduce the liability to less than 90% of the amount otherwise due under section 5 of P.L.1945, c.162 (C.54:10A-5), or to less than the statutory minimum provided in subsection (e) of section 5 of P.L.1945, c.162.

    c. The amount of the credit for a privilege period otherwise allowable under subsection a. of this section which cannot be applied for the privilege period due to the limitations of subsection b. of this section may be carried over, if necessary, to the five privilege periods following the privilege period for which the credit was allowed, or that amount may be carried back to the three privilege periods preceding the privilege period for which the credit was allowed. The entire amount of any unused credit for any privilege period for which the credit was allowed shall be carried to the earliest of the privilege periods to which the unused credit may be carried, and the portion of the unused credit which shall be carried to each of the other privilege periods to which unused credit may be carried shall be the amount of the unused credit, if any, over the total allowed credit in subsection b. of this section for each of the prior privilege periods to which the unused amount has been carried.

    d. For the purposes of this section, “employee with cystic fibrosis” means any employee 18 years of age or over who is certified by a physician to have cystic fibrosis.

    e. To claim a credit under this section, a taxpayer shall submit with its annual return the physician’s certification of the eligibility of each new employee which shall be completed on or before the 30th working day for each new employee.

 

    2. This act shall take effect immediately and apply with respect to privilege periods beginning on or after January 1 next following enactment.

 

 

STATEMENT

 

    This bill allows a corporation subject to the corporation business tax to receive a credit against the tax for certain wages paid adult workers with cystic fibrosis. Cystic fibrosis is a chronic hereditary disorder that affects the lungs and digestive system and causes difficulty in breathing and an inability to digest foods. The regimens of treatment of this disorder often result in repeated periods of hospitalization and special nutritional requirements that make it difficult for adult victims to maintain regular and routine hours of employment. With the number of persons born with cystic fibrosis living to adulthood increasing, now estimated to be between 150 to 200 adults, a tax credit incentive for New Jersey corporate employers to provide these individuals with opportunities to engage in a gainful occupation despite their special medical needs.

    The credit would be equal to 50% of the wages paid in the first year of employment up to $5,000 (maximum credit of $2,500) and 20% of the wages paid in the second year of employment up to $5,000 (maximum tax credit of $1,000). The total amount of credit allowed could not exceed 90% of the employer’s corporation business tax liability below the standard minimum assessment. However, any credit which could not be used in the tax year in which it was earned could be carried forward for up to five years or carried back for up to three tax years.

 

 

                             

 

Provides tax credit under corporation business tax for certain wages paid to workers with cystic fibrosis.