New Jersey § 54a:4-19

§ 54a:4-19.

a. A taxpayer, upon approval of an application to the department and the director,

shall be allowed a credit against the tax otherwise due for the taxable year under

the “New Jersey Gross Income Tax Act,” N.J.S.54A:1-1 et seq.: (1) in an amount not to exceed $5,000 of the qualified start-up costs incurred by the

taxpayer during a taxable year commencing on or after July 1, 2019, and associated

with the initial year of participation in an apprenticeship program established by

the taxpayer or group of taxpayers; or (2) in an amount not to exceed $10,000 of

the qualified start-up costs incurred by the taxpayer during a taxable year commencing

on or after July 1, 2019, and associated with the initial year of participation in

an apprenticeship program established by the taxpayer or group of taxpayers that provides

greater opportunities for workers in key industries. b. No tax credit shall be allowed pursuant to this section for any costs or expenses

included in the calculation of any other tax credit or exemption granted pursuant

to a claim made on a tax return filed with the director, or included in the calculation

of an award of business assistance or incentive, for a period of time that coincides

with the taxable year, for which a tax credit authorized pursuant to this section

is allowed. The order of priority of the application of the credit allowed pursuant to this

section, and any other credits allowed against the tax imposed pursuant to N.J.S.54A:1-1 et seq. for a taxable year, shall be as prescribed by the director. The amount of the credit applied against the New Jersey gross income tax imposed

pursuant to N.J.S.54A:1-1 shall not reduce a taxpayer's tax liability to an amount less than zero. c. (1) A business entity that is classified as a partnership for federal income tax

purposes shall not be allowed a tax credit pursuant to this section directly, but

the amount of tax credit of a taxpayer in respect to distributive share of entity

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

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

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

year ending within or with the taxpayer's taxable year. (2) A New Jersey S Corporation shall not be allowed a tax credit pursuant to this

section directly, but the amount of the tax 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 tax 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. d. The value of tax credits approved by the department and the director pursuant to

subsection a. of this section and pursuant to subsection a. of section 1 of P.L.2019, c. 417 ( C.54:10A-5.44 ) shall not exceed a cumulative total of $1,000,000 in fiscal year 2020 and in each

fiscal year thereafter to apply against the tax imposed pursuant to section 5 of P.L.1945,

c. 162 ( C.54:10A-5 ) and the tax imposed pursuant to the “New Jersey Gross Income Tax Act,” N.J.S.54A:1-1 et seq. If the cumulative total amount of tax credits allowed to taxpayers for taxable years

or privilege periods commencing during a single fiscal year under subsection a. of

this section and subsection a. of section 1 of P.L.2019, c. 417 ( C.54:10A-5.44 ) exceeds the amount of tax credits available in that fiscal year, then taxpayers

who have first applied for and have not been allowed a tax credit for that reason

shall be allowed, in the order in which they have submitted an application, the amount

of tax credit on the first day of the next succeeding fiscal year in which tax credits

allowed under subsection a. of this section and subsection a. of section 1 of P.L.2019, c. 417 ( C.54:10A-5.44 ) are not in excess of the amount of credits available. e. A taxpayer shall submit to the department and the director a report to verify the

qualified start-up costs incurred by the taxpayer associated with the initial year

of participation in an apprenticeship program. The report shall include such information as shall be determined necessary by the

department and the director to substantiate the qualified start-up costs incurred

by the taxpayer. f. As used in this section: “ Apprenticeship program ” means a registered program providing to each trainee combined classroom and on-the-job

training under the direct and close supervision of a highly skilled worker in an occupation

recognized as an apprenticable trade, and: (1) registered by the Office of Apprenticeship

of the U.S. Department of Labor and meeting the standards established by that office;

or (2) registered by a State apprenticeship agency recognized by the office. “ Department ” means the Department of Labor and Workforce Development” “ Key industry ” means an industry that makes or could make an important contribution to the economy

of the State, which may include, but not be limited to, advanced manufacturing, construction,

healthcare, logistics, pharmaceuticals, transportation, tourism, and renewable energy,

as defined by the Department of Labor and Workforce Development in accordance with

regulations adopted pursuant to P.L.2019, c. 417 ( C.54:10A-5.44 et al.). “ Qualified start-up costs ” means the ordinary and necessary costs to start an apprenticeship program in that

industry and occupation, including the salary costs of employees working on the program

and if applicable, the non-recurring costs of fixed telecommunication furnishings

and office equipment.