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Tax Credit Program for Employers of Employees with Impairments Impacted by Increase in Minimum Wage under P.L. 2019, c. 32 (N.J.S.A. 34:11-56a40 et seq.)
The purpose of the program is to provide tax credits to employers of employees with impairments. It is intended to help offset the cost to employers for any increases in wages and payroll taxes for an impaired employee as a result of the minimum wage increase.
The credit is applied against the Corporation Business Tax or Gross Income Tax, whichever of the two taxes applies to the employer. It must be used the year in which it is earned. There are no carryover provisions for this tax credit. Any unused tax credit amount is forfeited.
How to Apply for the Tax Credit
The program is administered by the Commissioner of the Department of Labor and Workforce Development (Labor). If you are an eligible employer, file an application with Labor. The Commissioner of Labor certifies the amount of the tax credit and provides you with a certificate.
How to Report the Tax Credit
Corporation Business Tax
For information on the Corporation Business Tax Credit for Employers of Employees with Impairments (N.J.S.A. 54:10A-5.42), see Form 328 .
Gross Income Tax
This credit is for employers.
You must file your New Jersey Income Tax Return before you can claim the credit. However, the NJ-1040 (Resident), NJ-1040NR (Non-Resident), and NJ-1041(Fiduciary) forms do not provide a line to take this credit.
Once you receive your certificate from Labor, submit the following items by mail:
A cover letter requesting your Tax Credit for Employers of Employees with Impairments be applied against your Income Tax. Include your name, a daytime telephone number, and current mailing address;
A copy of your New Jersey Income Tax Return; and
The certificate issued by Labor.
Send the documents requested above to:
New Jersey Division of Taxation
Gross Income Tax Audit Branch
P.O. Box 288
Trenton, NJ 08695-0288
Attention: William G. Bittner, Chief
Official Site of The State of New Jersey