This bill aims to provide gross income tax credits to support the development 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 of no more than $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 incurred during the respective taxable years and cannot be carried forward or back.

Additionally, the bill establishes a mandatory pre-approval process for taxpayers seeking to claim these credits. Taxpayers must apply for written authorization from the Director of the Division of Taxation, demonstrating that the qualified small business is unrelated to any other business they operate or that it was not established solely to benefit from the credit. If the director does not respond within specified timeframes, the application is automatically deemed approved. The bill also grants the director the authority to adopt necessary rules and regulations to implement its provisions, which will take effect immediately for tax liabilities incurred in taxable years beginning on or after January 1 following the date of enactment.