Senate Commerce Committee Statement to Senate, No. 1162 — State of New Jersey (October 22, 2020)

Summary

A Senate Commerce Committee statement to the Senate on Senate Bill No. 1162, State of New Jersey, dated October 22, 2020, reporting the bill favorably. The bill allows corporation business tax and gross income tax credits to businesses that employ qualified ex-offenders; each credit would be equal to 15 percent of the wages paid, with a maximum of $900 per ex-offender. A qualified ex-offender is defined as a person convicted of a crime of the first, second, third or fourth degree in this State and hired within one year of conviction or release from incarceration. The statement says the credits are modeled on the federal Work Opportunity Tax Credit (WOTC).

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SENATE COMMERCE COMMITTEE

STATEMENT TO

SENATE, No.
1162

STATE
OF NEW JERSEY

DATED: OCTOBER
22, 2020

The Senate Commerce Committee reports favorably
Senate Bill No. 1162.

This bill allows corporation business tax and gross
income tax credits to businesses that employ qualified ex-offenders. The
amount of each credit would be equal to 15 percent of the wages paid to the
ex-offender with a maximum of $900 per ex-offender.

A qualified ex-offender is defined in the bill as a
person who: (1) has been convicted of a crime of the first, second, third or
fourth degree in this State; and (2) has been hired within one year of the date
of conviction or release from incarceration.

These State tax credits are modeled on the federal
Work Opportunity Tax Credit (WOTC), which encourages employers to hire targeted
groups of employees, including ex-felons. Under the federal WOTC, employers
may claim a federal tax credit of up to 40 percent of the first $6,000 earned
by the employee, or $2,400.

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