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S 4120

Relates to the licensing of professional and clinical music therapists

2025 Regular Session Introduced by Jessica Scarcella-Spanton

The bill creates tax credits for employers who hire and retain neurodiverse individuals in qualifying STEM/AI roles, with escalating annual credits up to 9,000 per full-time employ

REFERRED TO HIGHER EDUCATION
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Bill Summary · S 4120

Summary — S 4120 (1R)

Title: Relates to the licensing of professional and clinical music therapists — (bill text as amended focuses on tax credits for employers of neurodiverse individuals)

(Note: despite the title shown, the bill’s substance creates tax credits for employers who hire and retain neurodiverse individuals in qualifying STEM or AI roles.)

Purpose

To incentivize private-sector hiring and retention of individuals considered “neurodiverse” by providing corporation business tax and gross income tax credits to employers for wages paid to qualifying employees working in science, technology, engineering, math, or artificial intelligence roles.

Key provisions

  • Tax credits available against:
    • Corporation Business Tax (CBT) and
    • New Jersey Gross Income Tax.
  • Credit amounts (per qualified employee per year):
    • Full‑time: $7,000 in the first qualifying year, $8,000 in the second consecutive year, $9,000 in the third and each subsequent consecutive year.
    • Part‑time: up to $4,500 per year.
  • Annual program cap: Director may approve no more than $10,000,000 in total tax credits in any calendar year.
  • Credits cannot reduce CBT liability for a privilege period below the statutory minimum and, together with other credits/payments, may not exceed 50% of tax liability for that period. Unused credit may be carried forward up to seven privilege periods.
  • “Full‑time” is generally defined as at least 35 hours per week; “part‑time” is less than 35 hours/week.
  • Qualified employees must be paid at least minimum wage and cannot be independent contractors or consultants.

Eligibility, definitions, and administrative process

  • Certification: Employers must apply to the Director of the Division of Vocational Rehabilitation Services (DVRS) in the Department of Labor and Workforce Development for certification that employees are “qualified neurodiverse employees” and whether they are full‑ or part‑time.
  • Guidelines: The definition of “neurodiverse” and qualifying STEM/AI roles will be issued jointly by the DVRS Director and the Assistant Commissioner of the Division of Developmental Disabilities (DHS). DVRS must consult with the Director of the Division of Taxation when issuing rules.
  • Timing: DVRS must decide an application within 90 calendar days of receiving a complete application and issue written certification within 5 days of a favorable determination. If DVRS fails to act within deadlines, the application is deemed approved.
  • Confidentiality: Health or identifying information obtained for certifications is protected; only aggregate non‑identifying statistics may be released. The director may confirm certification status to the employer.

Fiscal impact

  • Office of Legislative Services (fiscal estimate dated July 29, 2025): Annual State revenue loss of up to $10 million (the statutory cap). Actual fiscal cost is indeterminate and depends on how “neurodiverse” and qualifying roles are defined, participation rates, retention patterns, and the mix of full‑ vs part‑time hires.

Procedural status & timeline

  • Introduced in the Senate: January 30, 2025 (sponsor: Sen. Jessica Scarcella‑Spanton).
  • Referred to Senate Economic Growth Committee; reported with committee amendments: May 22, 2025.
  • Referred to Senate Budget and Appropriations Committee (May 22, 2025).
  • Also listed as referred to Higher Education (records show two referrals to Higher Education on Feb 3, 2025).
  • Fiscal estimate produced July 29, 2025.

Sponsors and related legislation

  • Primary sponsor: Sen. Jessica Scarcella‑Spanton.
  • Related/companion bills: A5608, A5145; prior‑session related bills include S5264, S3386, S21, S6819.

Potential effects / considerations

  • Encourages hiring and multi‑year retention of neurodiverse workers in STEM/AI jobs through escalating credit for consecutive years.
  • Administrative uncertainty remains because key eligibility details are left to post‑enactment guidelines and agency rulemaking, which will influence program participation and fiscal cost.
  • Privacy protections aim to limit disclosure of health information, while allowing employers to confirm certification status.

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

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