A Bill to Extend the Use of Tents for Outdoor Dining Until 2024 Also Cleared the Assembly Commerce Committee
(TRENTON) – 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 advanced by the Assembly Commerce and Economic Development Committee on Thursday.
“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.”
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 was amended to strengthen transparency, including requiring 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.”
A second small business relief bill (A-3708), sponsored by Assembly members Roy Freiman, Gabriela Mosquera (D-Camden, Gloucester), and Chris Tully, provides an extension on the use of tents and other fixtures until November 30, 2024.
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.
The sponsors issued the following statement on the bill:
“Even with indoor dining back, residents still enjoy dining al fresco. Our businesses are on the road to recovery. Every resource must be available to them while they get back on track. It worked well during the peak of the pandemic and now, many have found this to be an expanded opportunity for restauranteurs and certain businesses. It’s good for small business.”