Sponsored by:
Assemblyman ALEX SAUICKIE
District 12 (Burlington, Middlesex, Monmouth and Ocean)
Assemblywoman LINDA S. CARTER
District 22 (Somerset and Union)
SYNOPSIS
Directs DOLWD to establish regional farm wage; provides corporation business tax credits and gross income tax credits to farm employers paying certain farm worker wages.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning tax credits for farm employers paying certain farm worker wages and supplementing P.L.1966, c.113 (C.34:11-56a et seq.), P.L.1945, c.162 (C.54:10A-1 et seq.), and Title 54A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. The Commissioner of Labor and Workforce Development shall annually determine the regional farm wage by averaging the most recent agricultural wage data from Pennsylvania, New York, and Delaware.
b. The commissioner shall annually transmit to the Director of the Division of Taxation the regional farm wage established pursuant to this section.
c. As used in this section, regional farm wage means the average hourly wage for employees engaged to labor on a farm in Pennsylvania, New York, and Delaware.
2. a. A taxpayer that is a farm employer shall be allowed a credit against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) for a privilege period in an amount equal to the qualified compensation paid to employees of the farm employer during the privilege period, except that the amount of the credit shall not be less than zero.
b. The order of priority of the application of the credit allowed pursuant to this section and any other credits allowed by law shall be as prescribed by the director. The amount of the credit applied under this section against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) for a privilege period, together with any other credits allowed by law, shall not exceed 50 percent of the tax liability otherwise due for the privilege period and shall not reduce the tax liability to an amount less than the statutory minimum provided in subsection (e) of section 5 of P.L.1945, c.162 (C.54:10A-5).
c. The amount of the tax credit otherwise allowable under this section which cannot be applied for the privilege period may be carried forward, if necessary, to the four privilege periods following the privilege period for the tax credit was allowed.
d. No tax credit shall be allowed pursuant to this section for any costs or expenses included in the calculation of any other tax credit, exemption, or deduction granted pursuant to a claim made on a tax return filed with the director, or included in the calculation of an award of business assistance or incentive, for a period of time that coincides with the privilege period for which a tax credit pursuant to this section is allowed.
e. A farm employer shall apply in a form and manner to be determined by the director for the tax credit provided pursuant to this section.
f. As used in this section:
Director means the Director of the Division of Taxation in the Department of the Treasury.
Employee means an individual who is engaged by the farm employer on a piece-rate or regular hourly rate basis to labor on a farm.
Farm employer means a taxpayer in this State who engages individuals in this State on a piece-rate or regular hourly rate basis to labor on a farm.
Farm wage means the piece-rate or hourly wage for employees engaged to labor on a farm in this State pursuant to section 5 of P.L.1966, c.113 (C.34:11-56a4).
Qualified compensation means the difference between the amount of compensation paid to each employee, less the amount of compensation paid to each employee above the farm wage, and less the amount of compensation that would have been paid to each employee had the employee received the regional farm wage.
Regional farm wage means the average hourly wage for employees engaged to labor on a farm in Pennsylvania, New York, and Delaware established pursuant to section 1 of this act.
3. a. A taxpayer that is a farm employer shall be allowed a credit against the tax otherwise due under the New Jersey Gross Income Tax Act, N.J.S.54A:1-1 et seq., for a taxable year in an amount equal to the qualified compensation paid to employees of the farm employer during the taxable year, except that the amount of the credit shall not be less than zero.
b. (1) The director shall prescribe the order of priority of the application of the credit allowed under this section and any other credits allowed by law against the tax imposed under the "New Jersey Gross Income Tax Act" N.J.S.54A:1-1 et seq.
(2) The amount of the credit applied under this section against the tax imposed pursuant to the "New Jersey Gross Income Tax Act" N.J.S.54A:1-1 et seq. for a taxable year, together with any other credits allowed by law, shall not reduce the tax liability to an amount less than zero. The amount of the tax credit otherwise allowable under this section which cannot be applied for the taxable year may be carried forward, if necessary, to the four taxable years following the taxable year for which the tax credit was allowed.
c. No tax credit shall be allowed pursuant to this section for any costs or expenses included in the calculation of any other tax credit, exemption, or deduction granted pursuant to a claim made on a tax return filed with the director, or included in the calculation of an award of business assistance or incentive, for a period of time that coincides with the taxable year, for which a tax credit authorized pursuant to this section is allowed.
d. (1) A business entity that is classified as a partnership for federal income tax purposes shall not be allowed a tax credit pursuant to this section directly, but the amount of tax credit of a taxpayer in respect to distributive share of entity income, shall be determined by allocating to the taxpayer that proportion of the tax credit acquired by the entity that is equal to the taxpayers share, whether or not distributed, of the total distributive income or gain of the entity for its taxable year ending within or with the taxpayers taxable year.
(2) A New Jersey S Corporation shall not be allowed a tax credit pursuant to this section directly, but the amount of the tax credit of a taxpayer in respect of a pro rata share of S Corporation income, shall be determined by allocating to the taxpayer that proportion of the tax credit acquired by the New Jersey S Corporation that is equal to the taxpayers share, whether or not distributed, of the total pro rata share of S Corporation income of the New Jersey S Corporation for its privilege period ending within or with the taxpayers taxable year.
e. A farm employer shall apply in a fo