LEGISLATIVE FISCAL ESTIMATE
[First Reprint]
SENATE, No. 2306
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: OCTOBER 24, 2024
SUMMARY
Synopsis: “New Jersey Works Act”; permits businesses to apply for tax credits
for establishing approved pre-employment work readiness training
programs in partnership with schools, nonprofit organizations, or
educational institutions.
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 Annual
Direct State Revenue Loss Up to $2,000,000
Indirect State Revenue Gain Indeterminate
State Cost Increase 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 with credit-receiving businesses that will be created irrespective of
the tax credit award cannot be attributed to the bill.
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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 The OLS anticipates that the State will incur additional costs related to the review of pre-
employment and work readiness training programs and the completion of an efficacy study.
The bill does not include an appropriation to pay for these expenses.
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, a 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.
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 work readiness training
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 work readiness training programs. The OLS cannot predict how
many business entities will support a pre-employment and work 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 finances.
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The OLS anticipates that the State will incur additional costs related to the implementation of
the bill. At a minimum, these costs would be associated with the approval of qualified pre-
employment and work readiness training programs by the Department of Labor and Workforce
Development and the completion of an efficacy study by the Department of State.
Section: Revenue, Finance, and Appropriations
Analyst: Scott A. Brodsky
Staff Fiscal and 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.).