TRENTON – The Senate Military and Veterans’ Affairs Committee advanced legislation sponsored by Senators Nilsa Cruz-Perez and Shirley Turner that would provide for tax credits for businesses that employ members of the National Guard or reserve components of the Armed Forces of the United States while they are on active duty.
“Military families can struggle when service interrupts employment, especially when employers cannot retain their employment throughout their service,” said Senator Cruz-Perez (D-Camden/Gloucester). “This bill will make it more financially feasible for companies to retain military members on their payrolls, and thus provide more financial stability for the families of these military members.”
The bill, S-82, would provide tax credits against the Corporation Business Tax and the gross income tax. The amount of credit would be equal to the amount of salary paid by the business that makes up the difference between the employee’s regular pay and their military pay. The credits would be capped at 50 percent of the business’ tax liability to prevent credits from lowering a business’ liability below statutory minimums.
“A number of large companies already cover the salary of employees who are active duty, but that can be financially difficult for smaller and mid-sized companies,” said Senator Turner (D-Hunterdon/Mercer). “By providing tax credits, the benefits for military families offered by large companies can be extended to other job opportunities, giving them more flexibility in employment and more guarantees of stability in their income.”
The bill was advanced in a unanimous vote.