New Jersey S 2231: Provides temporary corporation business tax and gross income tax credits for certain employer-provided child care expenditures.

Bill Text

S2231 

SENATE, No. 2231 

STATE OF NEW JERSEY

222nd LEGISLATURE

� 

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Senator M. TERESA RUIZ

District 29 (Essex and Hudson)

Senator JOSEPH F. VITALE

District 19 (Middlesex)

Co-Sponsored by:

Senators Cruz-Perez, Cryan, Singleton, Turner, Stack and 
Timberlake

SYNOPSIS

���� Provides temporary corporation business tax and gross 
income tax credits for certain employer-provided child care expenditures.

CURRENT VERSION OF TEXT 

���� Introduced Pending Technical Review by Legislative 
Counsel.

��

An Act providing credits against the corporation business tax 
and the gross income tax for certain employer-provided child care expenditures, 
supplementing P.L.1945, c.162 (C.54:10A-1 et seq.) and chapter 4 of Title 54A 
of the New Jersey Statutes.

���� Be It 
Enacted by the Senate and General Assembly of 
the State of New Jersey:

���� 1.��� a.� For privilege 
periods beginning in the three calendar years following the effective date of 
P.L.��� , c.�� (C.������ ) (pending before the Legislature as this bill), a 
taxpayer shall be allowed a credit against the tax imposed pursuant to section 
5 of P.L.1945, c.162 (C.54:10A-5), in an amount equal to 50 percent of up to 
$50,000 of expenses paid or incurred by the taxpayer to acquire, construct, 
reconstruct, renovate, or otherwise improve real property in this State that is 
to be used by the taxpayer, or another person under contract or agreement with 
the taxpayer, to conduct, maintain, and operate a qualified child care center 
primarily for the children of individuals employed by the taxpayer.

���� b.��� To be eligible to apply 
the credit allowed in accordance with subsection a. of this section against the 
tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5), a taxpayer 
shall make and enter into an agreement with the director on or before the last 
day of the privilege period for which the credit is first applied.

���� The agreement shall require 
the taxpayer to submit to the director all receipts, bills, invoices, and other 
similar documents that the director determines to be necessary to verify the 
costs paid or incurred by the taxpayer.

���� The agreement shall require 
the taxpayer to demonstrate to the director that the real property acquired, 
constructed, reconstructed, renovated, or otherwise improved in this State is 
not part of the principal residence of the taxpayer or part of the principal 
residence of an individual employed by the taxpayer.

���� The agreement shall require 
the taxpayer to demonstrate to the director that the real property acquired, 
constructed, reconstructed, renovated, or otherwise improved in this State is 
used by the taxpayer, or another person under contract or agreement with the 
taxpayer, to conduct, maintain, and operate a qualified child care center 
primarily for the children of individuals employed by the taxpayer on the date 
the agreement is entered into.

���� The agreement shall require 
the taxpayer to use the real property acquired, constructed, reconstructed, 
renovated, or otherwise improved in this State to conduct, maintain, and 
operate, either directly or indirectly by another person under contract or 
agreement with the taxpayer, a qualified child care center primarily for the 
children of individuals employed by the taxpayer for a period of 60 consecutive 
months beginning on the first day of the first month next following the date 
the agreement is entered into.

���� The agreement shall require 
the taxpayer to notify the director in writing if, at any time during the 
60-month period in which the real property is required to be used as a 
qualified child care center, the real property is not used by the taxpayer, or another 
person under contract or agreement with the taxpayer, to conduct, maintain, and 
operate a qualified child care center primarily for the children of individuals 
employed by the taxpayer.

���� The agreement shall require 
the taxpayer to repay the amount of credit allowed in accordance with 
subsection a. of this section that has been applied to reduce the taxpayer�s 
liability for tax, and shall prohibit the taxpayer from applying any unused amount 
of credit allowed in accordance with subsection a. of this section, if the 
taxpayer is required to notify the director of the taxpayer�s failure to 
conduct, maintain, and operate a qualified child care center during the 
60-month period in which the real property is required to be used as a 
qualified child care center; provided, however, that the taxpayer shall not be 
required to repay the amount of any credit, or be prohibited from applying any 
unused credit, allowed in accordance with subsection a. of this section, if the 
taxpayer�s failure to conduct, maintain, and operate the qualified child care 
center during the 60-month period results from a casualty loss, involving the 
qualified child care center, or if another person, under