Trenton – In an effort to combat the massive layoffs in response to the COVID-19 pandemic, the Senate Labor Committee today approved legislation sponsored by Senator Nilsa Cruz-Perez that would provide incentives for small businesses to hire unemployed workers.

“New Jersey has seen record levels of unemployment during the coronavirus pandemic, with 1.8 million unemployment claims having been filed since mid-March,” said Senator Cruz-Perez (D-Camden/Gloucester). “This tax credit will target those businesses most impacted by the COVID-19 pandemic, particularly in the service and entertainment industries. Our hope is that through this program, we can assist businesses so that they can remain open without laying off as many employees.”

The bill, S-1958, would create the New Jobs for New Jersey Act. Under the bill, an employer of 100 or fewer full-time employees will be eligible for a refundable tax credit against the corporation business tax or the gross income tax for each eligible individual employed by the employer during a tax year.

Under the bill, eligible employees will include individuals hired for full-time work by the employer after April 1, 2021.  Prior to being considered as an eligible employee, they must be unemployed for 30 days or more prior to employment and cannot have been hired by the employer in the past.

The bill was released from committee by a vote of 4-0.