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Bill

LP

Bill

A 4007

Allows small employers to claim tax credit for paying certain health benefits plan premiums.

2024-2025 Regular Session Introduced by Luanne Peterpaul and 2 co-sponsors

New Jersey bill creates tax credit for small employers paying employee health insurance premiums to incentivize workplace coverage expansion.

Reported and Referred to Assembly Financial Institutions and Insurance Committee
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WeVote Research Nonpartisan
Bill Summary · A 4007

Legislative bill overview

Bill A 4007 would establish a tax credit for small employers in New Jersey that pay premiums for their employees' health benefit plans. The credit appears designed to incentivize small businesses to offer health insurance coverage by reducing their tax liability. This targets a gap in current tax policy where larger employers may have more resources to offer competitive health benefits.

Why is this important

Small businesses often struggle to afford health insurance for employees, which can impact recruitment and retention of talent. A tax credit could make health benefits more financially feasible for small employers, potentially expanding health coverage access for workers in small firms. However, the fiscal impact on the state budget and the actual take-up rate among eligible employers remain key considerations.

Potential points of contention

  • Cost to state budget: The bill's fiscal impact is unclear—estimating how many small employers would claim the credit and the total revenue loss requires detailed economic analysis
  • Definition of "small employer" and "certain health benefits": The bill's effectiveness depends heavily on how these terms are defined, which could affect eligibility scope and fairness across business sizes
  • Alternative approaches: Critics may argue direct subsidies or Medicaid expansion could be more efficient ways to expand employee health coverage than tax credits that primarily benefit employers with higher tax liability

Compiled from official sources — confirm details with the bill’s official record.

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