This bill aims to provide gross income tax credits to foster the growth of small business start-ups based in New Jersey. It defines a "qualified small business" as one that is registered in the state, derives a majority of its income from in-state operations, has no more than 50 employees during its first profitable year, and has a net income not exceeding $100,000 in that year. The bill allows these businesses to claim tax credits equal to 75% of their gross income tax liability in the first year of profitability, 50% in the second year, and 25% in the third year. The credits are strictly limited to the tax liabilities for the respective years and cannot be carried forward or back.

Additionally, the bill establishes a mandatory pre-approval process for taxpayers seeking to utilize these credits. Taxpayers must apply for written authorization from the Director of the Division of Taxation, demonstrating that the qualified small business is not related to any other business operated by the taxpayer, or if related, that it was not established solely to benefit from the credit. The director is required to review applications within 90 days, and if no determination is made, the application is automatically approved. The bill also grants the director the authority to adopt necessary regulations to implement its provisions, with an immediate effect upon enactment for tax liabilities incurred in taxable years starting after January 1 following the enactment date.