Budget & Taxes (Small Business)

This bill creates a 1% tax credit for New Jersey corporations that pay small New Jersey businesses for subcontracted work performed within the state. A "small business" is defined as a New Jersey entity with fewer than 50 employees that is not affiliated with the paying corporation. The credit applies to payments made for work the corporation subcontracts to fulfill its own contracted duties, but cannot exceed 50% of the corporation’s tax liability or reduce the tax below the statutory minimum. The credit applies to privilege periods beginning after the bill’s enactment.