This bill establishes a tax credit for small employers in New Jersey with fewer than 20 employees who pay for their employees' 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. The full credit is available only if the employer pays 100% of the premiums; if they pay between 50% and 100%, the credit is prorated accordingly. Additionally, the total credit cannot exceed the total amount paid for premiums during the applicable period.

The bill also outlines specific provisions for partnerships and New Jersey S Corporations, stating that these entities cannot claim the credit directly but can allocate the credit based on the taxpayer's share of income. The total credit applied against the tax liability is capped at 50% of the tax due, and any unused credit 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.