The New Jersey Works Act is designed to encourage businesses to partner with educational institutions and nonprofit organizations to develop pre-employment and work readiness training programs aimed at low- and moderate-income households. Under this legislation, businesses can receive a tax credit equal to 100% of the financial assistance they provide for approved training programs, which must last at least 12 weeks and pay participants at least the minimum wage. Notably, businesses in the construction trade are excluded from participating in these programs. The bill allocates $3 million from the General Fund for its implementation and allows for a cumulative total of $12 million in tax credits per state fiscal year for businesses that establish approved training programs.

The act requires educational institutions or nonprofit organizations to submit a training plan for approval by the Department of Labor and Workforce Development, which will ensure compliance with specific standards. Participants must be at least 16 years old, and eligibility cannot be based on the possession of a high school diploma or equivalency. The bill also mandates that the educational institution or nonprofit demonstrate its capacity to implement the plan and provide documentation of completion rates. After two years, the Department of State will conduct a study to evaluate the effectiveness of the training programs and tax credits, with findings reported to the Governor and Legislature.