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A 1471

Relates to jury deliberations

2025 Regular Session Introduced by Catalina Cruz and 6 co-sponsors

NJ tax credit program incentivizes employers to hire nonresident military spouses by offering up to 2400 per eligible employee in wage-based credits.

REFERRED TO CODES
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Bill Summary · A 1471

Summary of Assembly Bill A-1471 (Introduced Jan 9, 2024)

A-1471 establishes a Military Spouse Employment Tax Credit Program in New Jersey to incentivize employers to hire nonresident military spouses and to provide targeted tax credits against state taxes.

Purpose and scope

  • Create a tax credit program within the Department of Labor and Workforce Development to encourage the hiring of nonresident military spouses whose spouses are active-duty U.S. military members stationed in New Jersey.
  • Eligible employers may receive tax credits against the corporate business tax or the gross income tax, as applicable.

Key provisions

  • Definitions

    • Commissioner: Commissioner of Labor and Workforce Development.
    • Employer: Any nongovernmental business entity (including nonprofits, corporations, LLCs, partnerships, etc.), and entities with common ownership or control.
    • Nonresident military spouse employee: An employee meeting wage requirements, who is a nonresident of NJ and the spouse of an active-duty service member transferred to NJ, domiciled in NJ, or moved to NJ on permanent change-of-station.

  • Tax credits and calculation

    • Employers may apply for a tax credit certificate from the commissioner.
    • Credit amounts per nonresident military spouse employee:
    • 15% of wages if the employee works at least 120 hours but fewer than 400 hours in a taxable year/privilege period.
    • 25% of wages if the employee works at least 400 hours.
    • Maximum credit per employee: $2,400 in a tax year or privilege period.
    • Credits apply to the lesser of the calculated percentage of wages or the $2,400 cap.
    • Eligible for tax years/privilege periods beginning on or after January 1, 2020.

  • Regulatory framework

    • The commissioner, with the State Treasurer and Department of Military and Veterans’ Affairs, may adopt temporary regulations (up to 180 days) to implement the act, including:
    • Standards for determining which employees are nonresident military spouses.
    • Record-keeping requirements related to credits.
    • Methods for employers to submit tax credit certificates.

  • Reporting and transparency

    • Beginning the year after the act takes effect, and every three years thereafter, the commissioner must report on tax credits awarded, including the names and locations of employers and credit amounts, to the Governor and Legislature.

  • Effective date

    • The act takes effect immediately.

Who is affected

  • Employers in New Jersey that hire nonresident military spouses of active-duty service members stationed in or domiciled in New Jersey.
  • Nonresident military spouses who gain qualifying employment.
  • State agencies administering the tax credits (Division of Taxation) and regulatory bodies.

Legislative history and related items

  • Status: As of the latest action, referred to Codes (with prior committee actions noted in related documents).
  • Related bills: S 1579 (companion), and several prior-session/companion bills (A 4553, A 1439, S 1285, etc.).

Potential effects

  • Encourages employers to hire military spouses, supporting workforce stability for military families.
  • Provides a targeted state tax incentive (up to $2,400 per eligible employee) and a framework for administration and reporting.
  • Fiscal impact depends on the number of eligible hires; credits reduce state tax revenue but may stimulate employment and economic activity.

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

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