Assembly members Roy Freiman, Louis Greenwald, and Chris Tully introduced legislation yesterday to ensure no small business in New Jersey sees an unemployment insurance tax increase over the next two years. The bill provides corporate business tax and gross income tax credits for 70% of New Jersey businesses, focusing on small employers.
“The legislation will ensure no small business in New Jersey sees a tax increase this year due to unemployment insurance,” said Freiman (D-Somerset, Mercer, Middlesex, Hunterdon). “Small businesses are still struggling to get through the effects of the pandemic. We will do everything we can to support them.”
“We’re putting money back into the pockets of small business owners allowing them to grow their operations and invest in their employees,” said Greenwald (D-Camden, Burlington). “Small businesses are the backbone of the economy. Their success is our success. This legislation will provide financial relief for many small employers.”
“Small businesses need our support now,” said Tully (D-Bergen, Passaic). “Helping them to stave off tax increases in the coming years will be critical to economic recovery post-pandemic.”
Under the bill, the tax credits will be available for taxable years beginning 2023 and 2024 and offset any increases an employer faces in unemployment insurance contributions in Fiscal Years 2023 and 2024. The tax credit will be available to small businesses that have not used other grants and subsidies to offset the increase in contributions and will be available to businesses that meet the US Small Business Administration definition of small business.
The bill was introduced Thursday, March 17.