This bill introduces a tax credit for small employers in New Jersey with fewer than 20 employees who pay for their employees' health benefits plan premiums, provided the plans meet the essential health benefits requirements of the federal Affordable Care Act. Employers can receive a credit of up to $250 for each employee with single coverage and $500 for each employee with family coverage, contingent on the percentage of the premium they pay. If an employer pays 100% of the premium, they receive the full credit; if they pay between 50% and 100%, the credit is prorated accordingly. No credit is available if the employer pays less than 50% of the premium.

Additionally, the bill stipulates that the total credit cannot exceed the total amount paid for premiums during the applicable period, and it cannot reduce the tax liability below a statutory minimum. The bill also specifies that partnerships and New Jersey S Corporations cannot claim the credit directly but can allocate it based on their distributive shares. The provisions of this act will take effect immediately and apply to privilege periods and taxable years beginning after enactment.