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NJ Bill Would Allow Small-Biz Tax Credit As Virus Aid

By Jaqueline McCool · 2021-05-12 12:20:01 -0400

New Jersey would allow small businesses to claim an income tax credit equal to 10% or 20% of a qualifying employee's wages as a response to the coronavirus pandemic, under a bill introduced in the Senate.

S.B. 3759, which Sen. Vin Gopal, D-Long Branch, introduced Tuesday, would allow businesses with 100 or fewer full-time employees to claim a tax credit equal to 10% of the wages of an employee who is paid on an hourly basis and is paid 120% of the state's hourly minimum wage.

If the business is in a designated COVID-impact county, one where the average monthly unemployment rate is greater than the state's average, then the business can claim a credit equal to 20% of a qualifying employee's wages.

The credit could be carried forward for up to seven tax years, according to the bill.

If enacted, the credit would apply to the 2020 and 2021 tax years.

--Editing by Vincent Sherry. 

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