Allows New Jersey S corporations to elect to transfer corporation business tax credits to shareholders to apply against the shareholders' gross income tax liability.

This bill allows New Jersey S corporations to elect to transfer certain business tax credits to their shareholders. These credits, which currently reduce the corporation's tax liability, would instead be applied against shareholders' personal income tax bills for the tax year in which the corporation's tax period ends. The transferable credits include incentives like the New Jobs Investment Credit and Neighborhood Revitalization Credit. Shareholders can use these credits to offset up to 50% of their personal tax liability, based on their ownership share and income from the S corporation. This change makes existing corporate tax credits more valuable for S corporations, which previously received limited benefit due to their low corporate tax rate.