Mazzeo & Andrzejczak Introduce Bill to Allow Tax Credits for Hiring Disabled Veterans

(TRENTON) – Assemblymen Vince Mazzeo and Sgt. Bob Andrzejczak recently introduced legislation to provide tax credits to businesses for hiring disabled veterans.

The sponsors note in the bill (A-3935) the intent is to encourage employers to hire certain disabled veterans who are seeking employment. The bill establishes credits under the corporation business tax and gross income tax for employers who employ certain disabled veterans.

“This is an opportunity to encourage job creation and hiring of our most esteemed residents, New Jersey veterans,” said Mazzeo (D-Atlantic). “Many veterans are eager to become a viable part of the workforce. With this legislation, we support businesses that help to make this happen for New Jersey’s disabled veterans.”

The bill provides an employer with a gross income tax or corporation business tax credit equal to 15 percent of the wages paid to a qualified disabled veteran, up to maximum of $1,800 per disabled veteran per taxable year or privileged period.

“The objective here is to create more opportunities for disabled veterans to work,” said Andrzejczak (D-Cape May/Atlantic/Cumberland). “Disabled veterans served and sacrificed for our freedoms, some more than others. We can continue to support military families by ensuring that disabled veterans get every opportunity to have the life they want for themselves and their families.”

The credits established under the bill would be temporary in that qualified wages are those wages paid by the employer to a qualified disabled veteran on or after January 1, 2015, but before January 1, 2018. The qualified disabled veteran must be employed for a least 185 business days of the tax year for which a credit is claimed.

The bill asserts certain precautions to ward against misuse of the tax credit. The bill provides that: (1) a taxpayer may not claim the tax credit if it is already included in the calculation of ant other state tax credit or grant; (2) the credit will be denied if the taxpayer displaces current employees for the benefit of the tax credit; (3) the corporation business tax credit must not be used to exceed the 50 percent of the tax liability and or reduce their liability to lower than the minimum and; (4) the gross income tax credit may not be reduced an amount less than zero due to this credit.

Eligible New Jersey taxpayers would apply to the Director of the Division of Taxation in the Department of Treasury for a transfer certificate in lieu of applying the credit against its tax liability.