LEGISLATIVE FISCAL ESTIMATE
[First Reprint]
ASSEMBLY, No. 2369
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: JULY 25, 2024
SUMMARY
Synopsis: “New Jersey Works Act”; concerns businesses and pre-employment
training programs; provides tax credit to businesses supporting pre-
employment training programs; appropriates $1 million.
Type of Impact: Annual net State revenue decrease to the General Fund and Property
Tax Relief Fund. Increase in State costs.
Agencies Affected: Department of Labor and Workforce Development.
Department of the Treasury.
Department of State.
Office of Legislative Services Estimate
Fiscal Impact First Year of Implementation Annually Thereafter
Direct State Revenue Loss Up to $2.0 million Up to $2.0 million
Indirect State Revenue Gain Indeterminate Indeterminate
State Cost Increase Up to $1.0 million Indeterminate
 The Office of Legislative Services (OLS) concludes that this bill will result in an annual net
decrease in State revenues. Several factors, such as the amount of assistance provided to pre-
employment and work readiness training programs and the number of participants that receive
employment following program completion will impact the specific magnitude of the direct
and indirect State revenue effects of the bill.
 The direct State revenue loss may be partially offset by the indirect State revenue effects
catalyzed through new training and employment opportunities, such as additional State
revenues from program participants hired by business entities that provide assistance to pre-
employment and work readiness training programs. In contrast, the fiscal, effects generated
by employment opportunities by credit-receiving businesses that will be created irrespective
of the tax credit award cannot be attributed to the bill.
 The bill appropriates $1.0 million to the Department of Labor and Workforce Development to
effectuate the purposes of the bill. If the full $1.0 million is not expended in the first year the
Office of Legislative Services Legislative Budget and Finance Office
State House Annex Phone (609) 847-3105
P.O. Box 068 Fax (609) 777-2442
Trenton, New Jersey 08625 www.njleg.state.nj.us
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bill is in effect, the remaining amount will be spent in future years until all funding is
exhausted.
BILL DESCRIPTION
The bill incentivizes businesses to establish pre-employment and work readiness training
programs together with certain types of educational institutions or with nonprofit organizations.
Under the bill, a business may receive a credit against the corporation business tax or gross income
tax for 100 percent of the financial assistance provided to support a qualified pre-employment and
work readiness training program approved by the Department of Labor and Workforce
Development. Businesses engaged in a construction trade are excluded from participating in the
program.
A maximum of $2.0 million in tax credits per State fiscal year are allowed to be granted to
taxpayers for assistance provided to an institution of higher education, comprehensive high school,
a vocational school, or a nonprofit organization for an approved pre-employment and work
readiness training program.
The bill requires the Department of State to conduct a study of the efficacy of the training
programs and tax credits following two years from the date of enactment of the bill and to report
the findings to the Governor and the Legislature. The bill appropriates $1.0 million from the
General Fund to the Department of Labor and Workforce Development to effectuate the purposes
of the bill.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS concludes that this bill will result in an indeterminate annual net loss of State
revenues to the General Fund and Property Tax Relief Fund beginning in FY 2025. Multiple
factors will influence the magnitude of the direct and indirect revenue effects of the bill.
The bill permits the awarding of up to $2.0 million in tax credits annually to business entities
that provide financial assistance to an approved pre-employment and worker readiness program.
The bill requires program participants to receive the State minimum wage for 12 weeks of paid
training. Trainees may also receive employment at the business entity which provided assistance
to support the program. If a program participant is subject to the gross income tax or spends the
resultant income on goods and services that are subject to the sales and use tax, then a portion of
the revenue loss will be offset by State revenue collections.
Actual annual revenue losses will be driven by the total amount contributed by business entities
to approved pre-employment and worker readiness training programs. The OLS cannot predict
how many business entities will support a pre-employment and worker readiness training program
or the total amount of assistance that will be provided to these programs. The bill’s limitation on
the costs or expenses eligible for the tax credit may further dampen the bill’s impact on State
revenues.
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Section: Revenue, Finance, and Appropriations
Analyst: Scott A. Brodsky
Staff Fiscal & Budget Analyst
Approved: Thomas Koenig
Legislative Budget and Finance Officer
This legislative fiscal estimate has been produced by the Office of Legislative Services due to the
failure of the Executive Branch to respond to our request for a fiscal note.
This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).