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 the maximum credit capped at $2,500 per employee. The bill also establishes that the application of this credit will follow a priority order set by the director and ensures that the tax liability cannot be reduced below the statutory minimum or zero, depending on the tax type.

The bill defines automation as a device, process, or system that replaces human labor and operates without continuous human input. This initiative aims to support businesses in New Jersey while addressing the economic challenges posed by automation, particularly in areas with high rates of at-risk jobs. The act 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.