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Bill

S 172

Relates to increasing short-term disability benefits

2025 Regular Session Introduced by Joe Addabbo and 15 co-sponsors

Creates a voluntary tax credit for employers to offer up to 2 days of paid leave for employees to attend school events for a child, with credits against CBT/GIT and a $10M/yr cap.

REFERRED TO LABOR
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Bill Summary · S 172

Summary — S 172 (Introduced Jan 21, 2025)

Status: Referred to Labor; reported favorably with committee amendments (Senate Labor Committee) 6/5/2025; passed Senate 3/4/2025 and delivered to Assembly.

Main purpose

S 172 establishes a voluntary tax‑credit program to encourage private employers to provide paid leave (up to two full work days per year) that allows employees to attend school‑related conferences, meetings, functions, or other events for a child of the employee. The program is designed to offset employer costs for wages paid during that leave.

Key provisions

  • Employer credit: Employers that provide full paid leave for up to two full working days per employee (in addition to statutorily required earned sick leave) may apply for a tax credit equal to the wages actually paid to employees for that leave.
  • Tax application: Credits may be applied against either the New Jersey corporation business tax (CBT) or the gross income tax (GIT), whichever is applicable to the employer.
  • Eligible periods: Employers may qualify for credits in taxable years or privilege periods beginning on or after January 1, 2025.
  • Annual cap: The combined value of credits approved by the Department of Labor and Workforce Development (DOLWD) is capped at $10,000,000 per calendar year. The Commissioner must review and report annually to the Legislature on the cap’s sufficiency.
  • Carryforward and minimum tax: Credits cannot be carried forward to subsequent years and cannot reduce tax liability below statutory minimums.
  • Administrative rules and reporting: The Commissioner (in consultation with the State Treasurer) will adopt regulations on employer eligibility, record‑keeping, and procedures for submitting certificates of credit to the Division of Taxation. The Commissioner must produce a biennial report (starting the year after enactment) listing employers awarded credits and amounts.
  • Employee protections (committee amendments): Clarifies the benefit as paid leave (not termed “family leave”), and prevents employers from requiring employees to exhaust other available leave before using this leave.

Affected parties / agencies

  • Employers: Non‑governmental business entities (including nonprofits, corporations, LLCs, partnerships, sole proprietorships) that choose to offer the specified paid leave.
  • Employees: Workers with children who would use the paid leave to attend school‑related events.
  • State agencies: Department of Labor and Workforce Development (program administration, certification, reporting) and Division of Taxation (credit application against CBT/GIT).
  • Fiscal impact: Office of Legislative Services estimates an annual State revenue loss of up to $10 million (the statutory cap). Actual revenue loss is indeterminate and will depend on employer participation and utilization. DOLWD will have added workload to administer the program.

Procedural / timeline notes

  • Eligible credits begin for tax years/privilege periods starting on or after 1/1/2025.
  • The bill includes a 180‑day temporary regulation authority provision to allow initial rules to take effect while formal rulemaking proceeds.
  • Current status reflects Senate passage and committee reporting; the bill awaits further action by the Assembly and additional committee referrals noted in the legislative history.

Additional note

The bill materials include multiple document extracts and reprints (committee amendments and a fiscal estimate). The core policy and fiscal elements above are drawn from the reprinted bill text and the Legislative Fiscal Estimate.

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

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