NJBIA Expresses Support of Legislation Supporting Small Businesses;
Assembly Clears Two Pro-Business Measures in Total during Voting Session
Helping small businesses in New Jersey offset future scheduled increases in unemployment insurance contributions, Assembly members Roy Freiman, Louis Greenwald, Annette Chaparro, and Chris Tully sponsor legislation to provide corporate business tax and gross income tax credits to small employers. The bill was approved Thursday by the full Assembly 78-0.
“This legislation will help over 70 percent of New Jersey businesses pay for scheduled unemployment insurance tax increases,” said Assemblyman Freiman (D-Somerset, Mercer, Middlesex, Hunterdon). “With tax credits, we can offset the impact of any increases in unemployment insurance tax small businesses will see in the next few years.”
“We’re putting money back into the pockets of small business owners allowing them to grow their operations and invest in their employees,” said Majority Leader Greenwald (D-Camden, Burlington). “Small businesses are the backbone of the economy. Their success is our success. This legislation will help relieve a potential burden that can hurt many small employers.”
“NJBIA thanks the sponsors and the Assembly for their diligence and approval of these bills to help New Jersey businesses at a time when it’s really needed,” said Michele N. Siekerka, Esq., President and CEO New Jersey Business & Industry Association. “It is crucially important that this issue be addressed as soon as possible so businesses can plan for the future.”
Under the bill (A-3683), the corporate business tax and gross income tax credits would be available for taxable years beginning in 2023 and 2024 and based on potential increases an employer sees in unemployment insurance (UI) contributions in Fiscal Years 2023 and 2024. The tax credit would be available to small businesses that have not used other grants and subsidies to offset the increase in contributions. The measure also requires the Department of Labor to provide a minimum of 30-days notice to employers when the UI rate will change.
“Small businesses are rebuilding after having to navigate the last two years of the pandemic,” said Assemblywoman Chaparro (D-Hudson). “This legislation is a way to help small businesses keep down the costs associated with rising unemployment tax increases and place that money back into their business.”
“Our small businesses need our support now,” said Assemblyman Tully (D-Bergen, Passaic). “Helping them to stave off tax increases in the coming years will be critical to economic recovery post-pandemic.”
The current law authorizing such uses, enacted as a way to alleviate the financial burden on the restaurant industry and business community, expires on November 30, 2022.
One additional measure cleared the Assembly Thursday supporting small business relief. A-4222, sponsored by Assemblyman Roy Freiman, Joseph Egan, and Clinton Calabrese, would expand working hours for minors to help shore/tourism businesses staff up for the summer. The bill was approved 74-4.