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Workforce Tax Credit Programs
Work Opportunity Tax Credit (WOTC) Program This is a one-year federal program which offers tax incentives for employers to hire individuals from certain targeted groups, for example, - A member of a family that is receiving or recently received Temporary Assistance for Needy Families (TANF) for a specific period of time
- An 18-39 year old member of a family that is receiving or recently received Food Stamps
- An 18-24 year old resident of one of the federally designated Empowerment Zones (EZs), Enterprise Communities (ECs), or Renewal Communities (RCs),
- An ex-felon,
- A Vocational Rehabilitation Referral who completed or is completing rehabilitative services from a State certified agency, an Employment Network, or the U.S. Department of Veterans Affairs,A veteran who have received food stamps, A summer youth employee, and/or A recipient of SSI
Hiring workers from any of the targeted groups can earn an employer a WOTC of up to $2,400 for the first year of employment. The number of new hires who can qualify employers for these tax credits is unlimited. The WOTC replaces the Targeted Job Tax Credit (TJTC). For more information, call 1-800-792-8881 or (609) 292-8112. Business Retention and Relocation Assistance Grant (BRRAG) Tax Credit Certificate Transfer Program This program allows businesses with unused BRRAG tax credits to sell those credits to unaffiliated businesses to offset their relocation costs. Unused tax credits must be sold for at lease 75 percent of their value.
Companies wishing to sell unused BRRAG tax credits should complete the
BRRAG Tax Credit Certificate Transfer Program Application.
Related BRRAG Tax Credit Certificate Transfer Program Forms
Form 1 - Seller's Closing Certificate Form 2 - Selling Business Tax Benefit Identification Form Form 3 - Buying Business Information Sheet Form 4 - BRRAG Tax Credit Certificate Selling Agreement Form 5 - Private Financial Assistance Form Employees Tax Credit - Form 300 This credit is available to a taxpayer that was certified as a qualified business in the preceding tax year as well as the current tax year. Qualifying employees must have been hired after certification and must have worked six consecutive months in the tax year following the tax year in which employment began.
To claim the credit, a completed Form 300 [pdf 139 k] must be attached to the tax return. New Jobs Investment Tax Credit This tax credit is available for investment in new or expanded business facilities that create new jobs in New Jersey. The investment must create at least 5 new jobs (50 for large businesses), and meet the median annual compensation requirement for the current tax year. New investment is not eligible for the credit unless the average value of all real and tangible personal property in this state has increased over the prior year. The facilities must have been purchased from an unrelated party during or after the taxpayer’s accounting period beginning on or after July 7, 1993, the effective date of this legislation. The employee must be employed by the taxpayer in a taxable activity and must not have been in use during the 90 day period prior to purchase. Investments which qualify for the Manufacturing Equipment and Employment Investment Tax Credit cannot also qualify for this credit. A new employee means a New Jersey resident, hired to fill a regular, permanent position in this state, which did not exist prior to the qualified investment, and would not exist but for the qualified investment. The employee must be unrelated to the taxpayer and must not have been employed by the taxpayer during the six months prior to the date the investment was placed in service or use. The taxpayer cannot claim a credit for a number of new employees that exceeds either the increase in the taxpayer’s average employment for the tax year, or one-half the taxpayer’s average employment for the year. Also, individuals counted in determining the New Jobs Factor must not be ones for whom the taxpayer is allowed an Urban Enterprise Zone or Urban Development Project Employees Tax Credit. A small or mid-sized business taxpayer must also meet the annual payroll and annual gross receipts requirements for the current tax year to qualify. To claim this credit, the taxpayer must complete Form 304 [pdf 128 k] and attach it to the tax return. Smart Moves Business Program Tax Credit Employers who develop and support their own employee transportation programs may apply for a state corporate tax credit for a portion of the expenses incurred to make alternative modes of transportation available to their employees. To be eligible, an employer must fulfill two requirements: - Submit a Smart Moves For Business Program Narrative, a brief annual report to the New Jersey Department of Transportation (NJDOT).
- Complete New Jersey Division of Taxation Form 307 [pdf 128k] , “Smart Moves For Business Program Ride Share Tax Credit Form,” and file it with the corporate tax return.
Employers must register and submit the program narrative before submitting their tax return. Registering their program narrative with NJDOT does not obligate them to implement any particular alternative modes of transportation, nor does it require them to survey employees or meet a target.
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