This bill enables small employers with fewer than 20 employees to claim a tax credit for paying 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 proportionally reduced. Additionally, the credit is adjusted based on the duration of the premium payments during the taxable year.

The bill outlines that the total credit cannot exceed the total amount paid for premiums during the taxable year and specifies that the credit cannot reduce the tax liability below a statutory minimum. It also includes provisions for partnerships and New Jersey S Corporations regarding how credits are allocated among partners or shareholders. The act is set to take effect immediately and will apply to privilege periods and taxable years beginning after its enactment.