This bill introduces tax credits for businesses that pay a salary differential to employees who are members of the National Guard or reserve components of the Armed Forces while they are on active duty. Specifically, it allows a credit against the corporation business tax and the New Jersey Gross Income Tax, equal to the salary and wages paid to these qualified employees during their active duty period. The credit is capped at the amount that, when combined with the military pay from the United States government, equals the employee's regular salary. Additionally, the total credits claimed cannot exceed 50% of the taxpayer's tax liability for the applicable period.

The bill defines "qualified employee" as a member of the National Guard or a reserve component who has received mobilization orders for active duty. It also stipulates that any unused credit can be carried over for up to seven subsequent privilege or taxable periods. The act is set to take effect immediately, with provisions for the corporation business tax applying to privilege periods and those for the gross income tax applying to taxable years beginning after enactment.