New Jersey § 54a:4-18

§ 54a:4-18.

a. The Director of the Division of Taxation in the Department of the Treasury shall

allow an employer a credit against the gross income tax imposed pursuant to the “New

Jersey Gross Income Tax Act” N.J.S.54A:1-1 et seq. in the amount certified by the Commissioner of Labor and Workforce Development as

the taxpayer's tax credit amount pursuant to section 6 of P.L.2019, c. 32 ( C.34:11-56a40 ). To claim the tax credit amount for a taxable year, the taxpayer shall submit to

the director the certificate of credit issued for that taxable year by the commissioner

pursuant to section 6 of P.L.2019, c. 32 ( C.34:11-56a40 ). b. An employer shall apply the credit awarded against the employer's liability under

the “New Jersey Gross Income Tax Act” N.J.S.54A:1-1 et seq. for the taxable year during which the director allows the employer a tax credit pursuant

to this section. An employer shall not carry forward an unused credit. c. The director shall prescribe the order of priority of the application of the credit

allowed under this section and any other credits allowed by law against the tax imposed

under the “New Jersey Gross Income Tax Act” N.J.S.54A:1-1 et seq. The amount of the credit applied under this section against the tax imposed pursuant

to the “New Jersey Gross Income Tax Act” N.J.S.54A:1-1 et seq. for a taxable year, together with any other credits allowed by law, shall not reduce

the tax liability to an amount less than zero. No tax credit shall be allowed pursuant to this section for any wages and payroll

taxes included in the calculation of any other tax credit granted pursuant to a claim

made on a tax return filed with the director for a period of time that coincides with

the taxable year for which a tax credit authorized pursuant to this section is allowed. d. A business entity that is classified as a partnership for federal income tax purposes

shall not be allowed the tax credit directly under N.J.S.54A:1-1 et seq. , but the amount of credit of the taxpayer in respect of a distributive share of partnership

income shall be determined by allocating to the taxpayer that proportion of the credit

acquired by the partnership that is equal to the taxpayer's share, whether or not

distributed, of the total distributive income or gain of the partnership for its taxable

year ending within or with the taxpayer's taxable year. A taxpayer that is a New Jersey S corporation shall not be allowed the tax credit

directly under N.J.S.54A:1-1 et seq. , but the amount of credit of a taxpayer in respect of a pro-rata share of S corporation

income shall be determined by allocating to the taxpayer that proportion of the credit

acquired by the New Jersey S corporation that is equal to the taxpayer's share, whether

or not distributed, of the total pro-rata share of S corporation income of the New

Jersey S corporation for its privilege period ending within or with the taxpayer's

taxable year.