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Bill

Bill

S 4564

Provides employers with various tax incentives for hiring persons with disabilities under insurance premiums tax, corporation business tax and gross income tax.

2026-2027 Regular Session Introduced by Nilsa Cruz-Perez

The bill provides tax incentives across Insurance Premiums Tax, CBT, and gross income tax to encourage employers to hire persons with disabilities.

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WeVote Research Nonpartisan
Bill Summary · S 4564

Summary of Bill: S 4564 (New Jersey, Session 222)

Purpose and intent

  • The bill provides various tax incentives to employers that hire persons with disabilities. The incentives apply to multiple tax streams in New Jersey, specifically the insurance premiums tax, the corporation business tax (CBT), and the gross income tax.
  • The overarching goal is to encourage workforce inclusion of individuals with disabilities by reducing the net tax burden on employers who hire qualified employees with disabilities.

Key provisions and changes

  • Insurance Premiums Tax: Establishes or expands a deduction, credit, or exemption (as defined in the bill’s text) for employers that hire persons with disabilities, reducing the insurer premium tax liability corresponding to designated eligible wages or payroll activity.
  • Corporation Business Tax (CBT): Creates an eligible credit or benefit (likely as a percentage, flat amount, or wage-based formula) against CBT liability for employers that recruit and retain workers with disabilities. The credit would reduce corporate tax payments to the state in proportion to qualifying hires and wages.
  • Gross Income Tax: Implements an incentive (credit or deduction) against personal gross income tax for employers that hire individuals with disabilities, potentially through a credit that is allocated to the employer or reflected through withholding adjustments if applicable.
  • Eligibility criteria: The bill specifies who qualifies as a person with a disability and outlines criteria for employment arrangements (e.g., full-time or part-time employment, duration of employment, and the nature of the disability verification). It may also set caps, annual limits, or phase-in schedules for the incentives.
  • Calculation and administration: The text typically would define the method for calculating the incentive amounts, the documentation required to claim the incentive, and the process by which the incentives are awarded or carried forward. It may designate the responsible state department or tax administrator for program administration, compliance checks, and audits.
  • Sunset or durability: The bill may include a sunset provision, periodic reauthorization, or an automatic renewal clause, and could specify reporting requirements to evaluate effectiveness.

Who would be affected

  • Employers in New Jersey that hire or plan to hire persons with disabilities.
  • Human resources and payroll departments responsible for calculating and claiming tax incentives.
  • State revenue and tax agencies (e.g., Department of the Treasury) tasked with administering the incentives, verifying eligibility, and auditing claims.
  • Persons with disabilities seeking employment opportunities, who could benefit indirectly through increased hiring and placement.

Procedural and timeline aspects

  • The bill establishes the effective date for the incentives (e.g., a specific fiscal year or upon enactment) and whether the incentives apply to hires made after that date.
  • It may include annual or periodic reporting requirements, including submission deadlines for tax incentive claims and performance metrics.
  • If a sunset or reauthorization clause exists, it would indicate when the incentives expire or require renewal.

Potential impacts and considerations

  • Economic impact: Expected increase in employment opportunities for people with disabilities; a potential net reduction in state tax revenue offset by broader economic activity and reduced reliance on public support.
  • Administrative impact: New or adjusted processes for tax filings, documentation, and compliance monitoring.
  • Policy considerations: Clarity on eligible disabilities, documentation standards, and avoidance of misuse or fraud. The balance between generous incentives and fiscal safety net implications would be a consideration for stakeholders.

Note: This summary is based on the bill’s title and sponsor information. For precise statutory language, specific credit/ deduction amounts, eligibility criteria, caps, sunset provisions, and administration details, please refer to the official bill text and fiscal analyses.

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

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