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 receive a credit against their corporation business tax and gross income tax, calculated as the difference between their actual unemployment insurance contributions and the amount they would have contributed if calculated based on lower rates set by a specific table in the law. The credits are applicable for privilege periods starting in Calendar Year 2023 and will continue until the unemployment insurance contribution rates are equal to or less than those specified in the referenced table. The bill also stipulates that no tax credits will be available for any increases offset by grants or subsidies.

The definition of a "small business" is aligned with the criteria established by the U.S. Small Business Administration, ensuring that only eligible entities benefit from these credits. The tax credits are non-refundable but can be carried forward for up to seven years if not fully utilized in the year they are granted. Additionally, the bill outlines the application process for these credits and establishes that the total tax liability cannot be reduced below a statutory minimum. Overall, the legislation seeks to support small businesses facing rising costs associated with unemployment insurance contributions.