Bill
A 2369
The bill offers a 100% tax credit for private contributions to subsidize paid, 12-week pre‑employment training with a placement goal, capped at $2M annually.
Status and key dates
- Bill #: A2369
- Short title: New Jersey Works Act
- Introduced: January 9, 2024
- Most recent action: Reported out of Assembly Appropriations Committee with amendments (June 24, 2024); referred to Real Property Taxation (Jan 16, 2025).
- Sponsor (per materials provided): Jerett Gandolfo (primary). Companion/related bills: S2306, S3504; prior-session bills A2758, A9867.
Purpose and intent
- To incentivize private employers to fund pre-employment and work‑readiness training programs by granting dollar-for-dollar tax credits for qualifying contributions. The programs are intended to recruit, prepare, and educate individuals for in‑demand jobs with long‑term career potential, with emphasis on low‑ and moderate‑income households and workers needing up‑skilling or retraining.
Who is affected
- Businesses (any entity authorized to do business in NJ) that provide financial assistance, except businesses engaged in construction trades (excluded).
- Educational institutions (institutions of higher education, comprehensive high schools, county vocational schools) and 501(c)(3) nonprofit organizations that operate or partner on approved training programs.
- Program participants: trainees must be at least 16 years old; eligibility may not be conditioned on possessing a high‑school diploma or equivalency.
Key provisions
- Tax credit: A business providing qualifying financial assistance may claim a credit equal to 100% of the assistance against its corporation business tax or gross income tax.
- Annual cap: Tax credits awarded are capped at $2.0 million per State fiscal year (committee-amended amount). Credits may be awarded beginning in SFY 2025.
- Program minimums: Each approved program must provide at least 12 weeks of paid training for each participant, paid at New Jersey minimum wage; curricula must include basic math/English literacy, communication, critical thinking, leadership, life skills, and job‑readiness topics (e.g., resume prep, conflict management, finance concepts).
- Placement: Programs must offer trainees employment with a contributing business following successful completion.
- Eligibility and approval: Educational institutions/nonprofits must submit a proposed training plan to the Department of Labor and Workforce Development (DOL) for approval; DOL makes an initial determination and forwards certification and credit calculation to the Director of the Division of Taxation for final approval. Lead organization must be designated for multi‑partner plans. Providers must be on the State Eligible Training Provider List.
- Compliance and oversight: Programs must follow child labor laws and regulations (including specified N.J.A.C. sections). For secondary school work‑based learning, supervision/placement by a trained work‑based learning coordinator is required; DOL must consult with the Department of Education on program development and rulemaking.
- Reporting: Institutions/nonprofits must report program completion and employment outcomes at 3, 6, and 9 months after program close. The Department of State must study program efficacy and tax credit impacts two years after enactment and report to the Governor and Legislature.
- Appropriation: $1.0 million from the General Fund is appropriated to the Department of Labor and Workforce Development to implement the program.
Fiscal impact (Office of Legislative Services)
- Direct State revenue loss: up to $2.0 million annually (reflecting the tax credit cap).
- State costs: an initial appropriation of $1.0 million; OLS notes additional indeterminate administrative costs thereafter.
- Indirect revenue effects: indeterminate (some offset possible from payroll‑related tax and sales tax receipts when trainees gain employment).
Other notable changes made by committee amendments
- Reduced annual tax credit cap from $12 million (introduced version) to $2 million.
- Adjusted program purpose language to emphasize in‑demand labor occupations and long‑term career potential.
- Clarified definition of “comprehensive high school” and added child labor compliance, State Eligible Training Provider List requirement, Department of Education consultation, and coordination/supervision requirements for secondary students.
- Moved tax credits to begin in SFY 2025 and set the appropriation at $1 million.
Procedural next steps
- Bill is pending further legislative consideration after referral to the Assembly Real Property Taxation Committee. If enacted, DOL and Treasury would adopt implementing rules (in consultation with the Department of Education) and begin certifying programs and credits subject to the annual cap.
Compiled from official sources — confirm details with the bill’s official record.
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