This bill introduces tax credits for businesses that employ apprentices in registered apprenticeship programs with the U.S. Department of Labor. Starting from January 1, 2023, businesses can receive a credit of $1,000 for each apprentice employed for at least seven months during the taxable year. This credit can be increased by an additional $2,000 if the apprentice is a veteran, a displaced worker, or has previously received certain state benefits, as well as if they belong to an underrepresented group in their career field. The total potential credit for a qualifying apprentice could reach $5,000, and these amounts will be adjusted annually based on the Statewide average weekly wage.

The bill also stipulates that the tax credits cannot reduce a taxpayer's liability below the statutory minimum and outlines that no apprenticeship program associated with these credits should replace or displace existing workers or compete with current approved programs. The legislation aims to enhance New Jersey's workforce by incentivizing businesses to hire skilled apprentices across various industries, thereby addressing the skills gap in the labor market.