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S 2566

Relates to the use of MWBE investments for New York state funds

2025 Regular Session Introduced by Leroy Comrie and 4 co-sponsors

The bill creates state tax credits for New Jersey employers hiring National Guard or reserve members, $1500 or $2500 per qualified employee, against CBT or gross income tax.

REFERRED TO CIVIL SERVICE AND PENSIONS
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Bill Summary · S 2566

Summary — S 2566 (Introduced Version, provided materials)

Note: The materials provided for S 2566 contain conflicting and multiple texts. The clear substantive text in the “Introduced Version” is a New Jersey bill creating tax credits for employers who hire members of the New Jersey National Guard and members of the reserve component of the U.S. Armed Forces. Other documents in the packet (including a Massachusetts Gloucester Fisheries Commission amendment and a title referencing MWBE investments for New York state funds) appear unrelated or are from different jurisdictions. The summary below covers the New Jersey tax‑credit measure contained in the introduced text.

Purpose

To incentivize New Jersey employers to hire members of the New Jersey National Guard and reserve components of the U.S. Armed Forces by allowing state tax credits against (1) the Corporation Business Tax (CBT) and (2) individual gross income tax liabilities for qualifying employers and taxpayers.

Key provisions

  • Credit eligibility

    • “Qualified service member” = member of the New Jersey National Guard or a reserve component of the U.S. Armed Forces.
    • Credit applies for employing qualified service members during the taxable/privilege period.

  • Credit amounts

    • $1,500 per qualified service member who is employed and has NOT completed or returned from a deployment/activation.
    • $2,500 per qualified service member who IS employed and has completed or returned from a deployment/activation.

  • Applicable taxes

    • Corporation Business Tax: credit allowed against tax imposed under section 5 of P.L.1945, c.162 (C.54:10A-5).
    • Director of Division of Taxation will prescribe ordering of this credit relative to other credits.
    • The total application of credits cannot reduce CBT liability below the statutory minimum provided in subsection (e) of section 5 of P.L.1945, c.162.
    • New Jersey Gross Income Tax: credit allowed against tax under the “New Jersey Gross Income Tax Act,” N.J.S.54A:1‑1 et seq.
    • Director will prescribe ordering relative to other credits.
    • Credits cannot reduce gross income tax liability below zero.
    • Partnerships and New Jersey S corporations do not claim the credit directly — credits flow through to partners/shareholders in proportion to distributive or pro rata shares, whether or not distributed.

  • Administrative/regulatory authority

    • Director of the Division of Taxation may adopt rules and regulations immediately upon filing (emergency rulemaking) to implement the act, including documentation and verification requirements for claims.
    • Emergency rules effective for up to 18 months; thereafter normal rulemaking procedures apply.

  • Effective date

    • The act takes effect immediately and applies to taxable/privilege periods beginning on or after the date of enactment.

Who is affected

  • Employers in New Jersey (corporations and individuals subject to gross income tax) who hire members of the New Jersey National Guard or U.S. reserve component — they may claim the credit.
  • Members of the National Guard/reservists — the credit is intended to encourage their employment.
  • State government — potential reduction in tax revenue and administrative workload for Taxation Division.

Potential impacts

  • Incentive to recruit and hire Guard/reserve members, especially those recently returned from deployment.
  • Reduced state tax collections to the extent credits are claimed (no fiscal estimate provided in the text).
  • Administrative costs for verification of eligibility and rulemaking; immediate rulemaking authority expedites implementation.

Procedural/status notes

  • The introduced text states immediate effectiveness upon enactment.
  • The supplied legislative action list and file metadata appear to include entries from different jurisdictions and actions (including Massachusetts enactment and other unrelated measures). Users should verify the official bill text and current status with the New Jersey Legislature (or the appropriate legislative database) to confirm final language, fiscal notes, committee reports, and enactment status.

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

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