This bill introduces a corporation business tax credit for taxpayers who subcontract work to New Jersey small businesses. Specifically, it allows a credit equal to one percent of the amount paid to these small businesses for subcontracted work performed in New Jersey during the privilege period. A "New Jersey small business" is defined as a business entity or person located in the state with fewer than 50 total employees, excluding any affiliates or subsidiaries of the taxpayer. The bill also stipulates that the total amount of credits claimed, including this new credit, cannot exceed 50 percent of the taxpayer's total tax liability and cannot reduce the liability below the statutory minimum.

Additionally, the bill mandates that the director of the tax authority will establish the order of priority for applying this credit alongside other available credits. Procedures will also be developed for taxpayers to certify their eligibility for the credit. The act is set to take effect immediately and will apply to privilege periods that begin after its enactment.