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Bill

Bill

S 1769

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

2026-2027 Regular Session Introduced by Angela McKnight and 1 co-sponsor

New Jersey bill creates tax credits for small employers that pay employee health insurance premiums to increase coverage access.

Introduced in the Senate, Referred to Senate Budget and Appropriations Committee
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WeVote Research Nonpartisan
Bill Summary · S 1769

Legislative bill overview

S 1769 would establish a state tax credit for small employers that pay health insurance premiums for their employees. The bill allows qualifying small businesses to reduce their state tax liability based on amounts they contribute toward employee health benefits plans. This represents a targeted tax incentive to encourage small employer participation in providing health coverage.

Why is this important

Small businesses often struggle with the costs of offering competitive health benefits, which can impact their ability to recruit and retain employees. Tax credits that lower the net cost of health insurance premiums could increase the percentage of small business workers with employer-sponsored coverage. However, the fiscal impact depends heavily on the credit's structure—specifically how many employers qualify, the credit percentage, and whether it meaningfully affects coverage rates versus simply subsidizing existing benefits.

Potential points of contention

  • Cost to state budget: Tax credits reduce state revenue; opponents may question whether the benefit justifies the fiscal expense, particularly without defined caps or sunset provisions
  • Qualifier definition: The bill's effectiveness depends on how "small employer" is defined (number of employees) and whether the definition is broad enough to help target businesses or narrow enough to control costs
  • Adequacy of incentive: Critics may argue the credit amount is insufficient to meaningfully change employer behavior, making it a subsidy without measurable policy outcomes

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

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