This bill enables small employers with fewer than 20 employees to claim a tax credit for paying health benefits plan premiums, provided the plans meet the essential health benefits standards set by 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. The total credit cannot exceed the total amount paid for premiums during the applicable period.

Additionally, the bill outlines that the credit can be applied against both the corporate tax and the New Jersey Gross Income Tax, with specific provisions for partnerships and S Corporations regarding how credits are allocated among partners or shareholders. The bill also stipulates that the total credit applied cannot exceed 50% of the tax liability due and cannot be carried forward to future periods. The act is set to take effect immediately and will apply to privilege periods and taxable years beginning after its enactment.