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 that the plan meets the essential health benefits requirements of 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 privilege period or taxable year.

The bill also specifies that the credit cannot reduce the tax liability below a statutory minimum and cannot be carried forward to future periods. It includes provisions for partnerships and New Jersey S Corporations, stating that these entities cannot claim the credit directly but can allocate it based on the taxpayer's share of income. The act is set to take effect immediately and will apply to privilege periods and taxable years beginning after its enactment.