This bill aims to provide tax credits to small businesses in New Jersey to help mitigate the impact of increased unemployment insurance contributions. Specifically, it allows small businesses to claim a credit against the corporation business tax and the gross income tax, equal to the difference between their actual unemployment insurance contributions and the amount they would have contributed if calculated based on lower rates specified in existing law. The credits are applicable for fiscal years 2023 and 2024, and for subsequent years where the contribution rates exceed those set by a specific table in the law. However, if a small business receives grants or subsidies for similar purposes, they will not be eligible for these tax credits.

The bill defines "small business" according to the criteria established by the U.S. Small Business Administration and stipulates that the tax credits are non-refundable but can be carried forward for up to seven years. Additionally, the bill includes provisions for the application process and prioritization of credits, ensuring that the total tax liability does not fall below the statutory minimum. The legislation is designed to support small businesses facing increased financial burdens due to rising unemployment insurance costs, thereby promoting economic stability and growth within the state.