This bill amends current New Jersey law to exempt certain non-profit entities from the requirement that employers with at least 20 employees offer pre-tax transportation fringe benefits to their employees. Specifically, it introduces a new provision stating that the requirements for offering these benefits do not apply to tax-exempt non-profit organizations as defined under paragraph (3) of subsection c. of section 501 of the Internal Revenue Code.

The rationale behind this exemption is to alleviate the financial burden on non-profit organizations, which are currently subject to a federal corporate tax rate of 21 percent on contributions to these pre-tax transportation fringe benefits. By removing this requirement, the bill aims to support non-profits in managing their operational costs more effectively. The bill is set to take effect immediately upon passage.

Statutes affected:
Introduced: 27:26A-16