This bill proposes a tax credit for New Jersey businesses that employ individuals who have lost their jobs due to automation. Specifically, it allows a credit against both the corporation business tax and the gross income tax, amounting to 10 percent of the salary and wages paid to each qualifying employee. To be eligible for the credit, the taxpayer must employ the individual for at least seven months during the relevant privilege period or taxable year, with a maximum credit of $2,500 per employee. The bill also stipulates that the application of this credit will not reduce a taxpayer's liability below the statutory minimum for the corporation business tax or below zero for the gross income tax.

The bill defines automation as a device, process, or system that replaces human labor and operates without continuous input from an operator. This initiative aims to support workers affected by automation, particularly in regions like Ocean County, where many jobs are at high risk of being automated. The bill is set to take effect immediately and will apply to privilege periods and taxable years beginning on or after January 1 of the year following its enactment.