S 1204 — "New Jersey Battlefield to Boardroom Act"; provides corporation business tax credits and gross income tax credits for qualified wages of certain veterans.*

S1204 1R [First Reprint] SENATE, No.

SenatorSenators Beach and Cruz-Perez         SYNOPSIS      The“New New Jersey Battlefield to Boardroom Act;Act”;

  CURRENT VERSION OF TEXT      IntroducedAs Pendingreported Technicalby Reviewthe bySenate LegislativeMilitary Counsel.and Veterans' Affairs Committee on February 19, 2026, with amendments.

            1.   1.   This act shall be known and may be cited as “The1the1 “1[The]1 New Jersey Battlefield to Boardroom Act.”             2.   2.   a.  a.         (1)   (1)        For privilege periods commencing1[commencing on or after after January 1, 2020 but before January 1, 2024,2024] beginning after December 31 following the date of enactment of P.L.   , c.   (C.   ) (pending before the Legislature as this bill) and ending before January 1 of the fifth year next following the date of enactment1, a taxpayer shall be allowed a credit against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5), in an amount equal to the value of ten1[ten] 101 percent of qualified wages paid in the privilege period to a qualified veteran in the course of sustained employment.  For each privilege period, a taxpayer’s credit allowed pursuant to this section shall not exceed $1,200 for each qualified veteran.

          (2)  For a taxpayer to qualify for the credit allowed pursuant to this section for a privilege period, the taxpayer shall comply with the requirements of this paragraph.

          Twenty-five percent of the taxpayer’s new employees for the privilege period for which credit is claimed shall be qualified veterans.

          If the taxpayer received the credit allowed pursuant to this section for the privilege period immediately preceding the privilege period for which credit is claimed, then 50 percent of the qualified veterans hired in the immediately preceding privilege period shall remain employed by the taxpayer for the privilege period for which credit is claimed.

          The taxpayer shall provide veteran support services that are accessible in the workplace, which services may, but not necessarily, be procured through a private veteran support services service provider.

          The taxpayer shall regularly conduct specific recruitment efforts to hire qualified veterans and their nuclear family members.

          The taxpayer shall provide support to outreach efforts of veteran support organizations.

          The taxpayer shall comply with the federal Uniformed Services Employment and Reemployment Rights Act (38 U.S.C. s.4301 et seq.) and(38 provideU.S.C. additional privileges in excess of the rights protected by the federal Uniformed Services Employment and Reemployment Rights Act.

    s.4301 b.   et (1)   seq.) Theand orderprovide ofadditional priorityprivileges ofin theexcess application of the creditrights allowedprotected pursuant to this section and any other credits allowed against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) for a privilege period shall be as prescribed by the director. federal     Uniformed TheServices amountEmployment of the credit applied pursuant to this section, added together with any other credit allowed against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5), shall not exceed 50% of the tax liability otherwise due and shallReemployment notRights reduceAct. the tax liability to an amount less than the statutory minimum provided in subsection (e) of section 5 of P.L.1945, c.162.

          Unusedb.   credit(1)        resultingThe fromorder of priority of the limitationsapplication of thisthe paragraphcredit mayallowed bepursuant carriedto forward,this ifsection necessary,and forany useother incredits allowed against the seventax privilegeimposed periodspursuant followingto thesection 5 of P.L.1945, c.162 (C.54:10A-5) for a privilege period forshall whichbe as prescribed by the director.        The amount of the credit isapplied allowed.pursuant to this section, added together with any other credit allowed against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5), shall not exceed 1[50%] 50 percent1 of the tax liability otherwise due and shall not reduce the tax liability to an amount less than the statutory minimum provided in subsection (e) of section 5 of P.L.1945, c.162.

          (2) Unused A taxpayer shall not be granted a credit pursuantresulting tofrom this section for the qualifiedlimitations wagesof paidthis toparagraph amay qualifiedbe veterancarried inforward, a privilege period if thenecessary, qualifiedfor wagesuse of the qualified veteran or the job providing qualified wages to the qualified veteran is included in the calculationseven ofprivilege anotherperiods creditfollowing against any State tax or a grant pursuant to P.L.1996, c.26 (C.34:1B-124 et seq.) for a period of time that coincides with the applicable privilege period. period      (3)  If the director determines that a taxpayer is displacing employees and replacing the employees with qualified veterans for thewhich primary purposes of obtaining the credit allowedis pursuantallowed. to this section, the director shall deny the credit allowed under this section for the taxpayer and shall issue a tax assessment for the recapture of credit previously allowed to the taxpayer under this section plus an assessment of 50% of any credit subject to recapture as penalty.       c.    As used in this section:

          “Sustained(2)  employment”A meanstaxpayer shall not be granted a credit pursuant to this section for the qualified wages paid to a qualified veteran in a privilege period if the qualified wages of timethe noqualified lessveteran thanor 185the businessjob daysproviding duringqualified wages to the privilegequalified periodveteran is included in whichthe calculation of another credit against any State tax or a qualifiedgrant veteranpursuant to P.L.1996, c.26 (C.34:1B-124 et seq.) for a period of time that coincides with the applicable privilege period.        (3)  If the director determines that a taxpayer is earningdisplacing employees and replacing the employees with qualified wages.veterans for the primary purposes of obtaining the credit allowed pursuant to this section, the director shall deny the credit allowed under this section for the taxpayer and shall issue a tax assessment for the recapture of credit previously allowed to the taxpayer under this section plus an assessment of 1[50%] 50 percent1 of any credit subject to recapture as penalty.        1(4)  The total value of tax credits approved by the director pursuant to this section and section 3 of P.L.    , c.     (C.        ) (pending before the Legislature as this bill) shall not exceed $10,000,000 during any fiscal year.1       c.   As used in this section:

          “Qualified“Sustained veteran”employment” means a residentperiod of thistime Stateno initiallyless hiredthan by185 thebusiness taxpayerdays onduring orthe afterprivilege Januaryperiod 1, that has been honorably discharged or released under honorable circumstances from active service, occurring on or after January 1, 1965, in anywhich branch of the Armed Forces of the United States , and who has shown proof of military service by providing a copyqualified ofveteran theis DD-214earning form,qualified itswages. equivalent, or federal activation orders showing service under Title 10, section 672 or section 12301, of the United States Code.

          “Qualified wages”veteran” meanmeans anya salaries,resident wagesof andthis remunerationState subjectinitially tohired by the “Newtaxpayer Jerseyon Grossor Incomeafter Tax1[January Act,”1, N.J.S.54A:1-12010] etthe seq.,date paidof toenactment aof qualifiedP.L.   veteran, c.   (C.   ) (pending before the Legislature as this bill)1 that has been honorably discharged or released under honorable circumstances from active service, occurring on or after January 1, but1965, beforein Januaryany 1,branch 2024of forthe laborArmed renderedForces inof the United States , and who has shown proof of military service toby anproviding enterprisea copy of the taxpayer.DD-214 form, its equivalent, or federal activation orders showing service under Title 10, section 672 or section 12301, of the United States Code.

           “Qualified 3.   wages” a.  mean (1)   any Forsalaries, taxablewages yearsand commencingremuneration onsubject or after  January 1, 2020 but before January 1, 2024, a taxpayer shall be allowed a credit against the tax due pursuant to the “New Jersey Gross Income Tax Act,” N.J.S.54A:1-1 et seq., inpaid an amount equal to thea valuequalified ofveteran tenon percentor ofafter qualified1[January wages1, paid2020 inbut thebefore taxableJanuary year1, to2024] aJanuary qualified1 veteranfollowing in the coursedate of sustainedenactment employment. of ForP.L.   each, taxablec.   year,(C.   a) taxpayer’s(pending creditbefore allowedthe pursuantLegislature toas this sectionbill)1 shallfor notlabor exceedrendered $1,200in forservice eachto qualifiedan veteran.enterprise of the taxpayer.

      (2)       3.   a.  (1)   For ataxable taxpayeryears tocommencing qualifyon foror after 1[January 1, 2020 but before January 1, 2024] January 1 following the creditdate allowedof pursuantenactment toof P.L.   , c.   (C.   ) (pending before the Legislature as this sectionbill), and for athe next four taxable year,years thetherafter1, a taxpayer shall complybe withallowed a credit against the requirementstax due pursuant to the “New Jersey Gross Income Tax Act,” N.J.S.54A:1-1 et seq., in an amount equal to the value of 1[ten] 101 percent of qualified wages paid in the taxable year to a qualified veteran in the course of sustained employment.  For each taxable year, a taxpayer’s credit allowed pursuant to this paragraph.section shall not exceed $1,200 for each qualified veteran.

          Twenty-five(2)  percentFor ofa thetaxpayer taxpayer’sto newqualify employees for the taxablecredit yearallowed pursuant to this section for whicha credittaxable isyear, claimedthe taxpayer shall becomply qualifiedwith veterans.the requirements of this paragraph.

          IfTwenty-five thepercent taxpayerof received the credittaxpayer’s allowednew pursuantemployees to this section for the taxable year immediately preceding the taxable year for which credit is claimed,claimed thenshall 50be percent of the qualified veteransveterans. hired in the immediately preceding taxable year shall remain employed by the taxpayer for the taxable year for which credit is claimed.

          TheIf the taxpayer shallreceived providethe veterancredit supportallowed servicespursuant thatto arethis accessiblesection infor the workplace,taxable year immediately preceding the taxable year for which servicescredit may,is butclaimed, notthen necessarily,50 bepercent procuredof throughthe aqualified privateveterans veteranhired supportin servicesthe serviceimmediately provider.preceding taxable year shall remain employed by the taxpayer for the taxable year for which credit is claimed.

          The taxpayer shall regularlyprovide conductveteran specificsupport recruitmentservices effortsthat toare hireaccessible qualifiedin veteransthe andworkplace, theirwhich nuclearservices familymay, members.but not necessarily, be procured through a private veteran support services service provider.

          The taxpayer shall provideregularly supportconduct tospecific outreachrecruitment efforts ofto veteranhire supportqualified organizations.veterans and their nuclear family members.

          The taxpayer shall complyprovide withsupport theto federaloutreach Uniformedefforts Servicesof Employmentveteran andsupport Reemploymentorganizations. Rights Act (38 U.S.C.

s.4301      etThe seq.)taxpayer andshall providecomply additionalwith privileges in excess of the rights protected by the federal Uniformed Services Employment and Reemployment Rights Act. Act     (38 b.   U.S.C. (1)   A credit allowed pursuant to this section shall not reduce the tax liability otherwise due pursuant to the “New Jersey Gross Income Tax Act,” N.J.S.54A:1-1 et seq., for a taxable year to less than zero.

    s.4301 Unusedet creditseq.) resultingand fromprovide theadditional limitationsprivileges in excess of thisthe paragraphrights mayprotected beby carriedthe forwardfederal ifUniformed necessaryServices Employment and Reemployment Rights Act.        b.   (1)        A credit allowed pursuant to thethis sevensection taxableshall yearsnot followingreduce the taxabletax yearliability forotherwise whichdue pursuant to the credit“New wasJersey allowed. Gross TheIncome formTax andAct,” methodN.J.S.54A:1-1 ofet carryseq., forwardfor shalla betaxable asyear prescribedto byless thethan director.zero.

          (2) Unused A taxpayer shall not be granted a credit pursuantresulting tofrom this section for the qualifiedlimitations wagesof paidthis toparagraph amay qualifiedbe veterancarried inforward a taxable year if thenecessary qualified wages of the qualified veteran or the job providing qualified wages to the qualifiedseven veterantaxable isyears includedfollowing in the calculation of another credit against any State tax or a grant pursuant to P.L.1996, c.26 (C.34:1B-124 et seq.) for a period of time that coincides with the applicable taxable year. year      (3)  If the director determines that a taxpayer is displacing employees and replacing the employees with qualified veterans for thewhich primary purposes of obtaining the credit allowedwas pursuantallowed.  toThe thisform section, the director shall deny the credit allowed under this section for the taxpayer and shallmethod issue a tax assessment for the recapture of creditcarry previouslyforward allowedshall tobe the taxpayer under this section plus an assessment of 50% of any credit subject to recapture as penalty. prescribed     by c.   the Asdirector. used in this section:

          “Sustained(2)  employment”A meanstaxpayer shall not be granted a periodcredit pursuant to this section for the qualified wages paid to a qualified veteran in a taxable year if the qualified wages of timethe noqualified lessveteran thanor 185the businessjob daysproviding duringqualified wages to the privilegequalified periodveteran is included in whichthe calculation of another credit against any State tax or a qualifiedgrant veteranpursuant to P.L.1996, c.26 (C.34:1B-124 et seq.) for a period of time that coincides with the applicable taxable year.        (3)  If the director determines that a taxpayer is earningdisplacing employees and replacing the employees with qualified wages.veterans for the primary purposes of obtaining the credit allowed pursuant to this section, the director shall deny the credit allowed under this section for the taxpayer and shall issue a tax assessment for the recapture of credit previously allowed to the taxpayer under this section plus an assessment of 1[50%] 50 percent1 of any credit subject to recapture as penalty.        1(4)  The total value of tax credits approved by the director pursuant to this section and section 2 of P.L.    , c.     (C.        ) (pending before the Legislature as this bill) shall not exceed $10,000,000 during any fiscal year.1       c.   As used in this section:

          “Qualified“Sustained veteran”employment” means a residentperiod of thistime Stateno initiallyless hiredthan by185 thebusiness taxpayerdays onduring orthe afterprivilege Januaryperiod 1, that has been honorably discharged or released under honorable circumstances from active service, occurring on or after January 1, 1965, in anywhich branch of the Armed Forces of the United States, and who has shown proof of military service by providing a copyqualified ofveteran theis DD-214earning form,qualified itswages. equivalent, or federal activation orders showing service under Title 10, section 672 or section 12301, of the United States Code.

          “Qualified wages”veteran” meanmeans anya salaries,resident wagesof andthis remunerationState subjectinitially tohired by the “Newtaxpayer Jerseyon Grossor Incomeafter Tax1[January Act,”1, N.J.S.54A:1-1et2010] seq.,paidthe toeffective adate qualifiedof veteranP.L.   , c.   (C.   ) (pending before the Legislature at this bill)1 that has been honorably discharged or released under honorable circumstances from active service, occurring on or after January 1, but1965, beforein Januaryany 1,branch 2024of forthe laborArmed renderedForces inof the United States, and who has shown proof of military service toby anproviding enterprisea copy of the taxpayer.DD-214 form, its equivalent, or federal activation orders showing service under Title 10, section 672 or section 12301, of the United States Code.

      “Qualified wages” mean any salaries, wages and remuneration subject to the “New Jersey Gross Income Tax Act,” N.J.S.54A:1-1et seq., paid to a qualified veteran on or after 1[January 1, 2020 but before January 1, 2024] January 1 following the date of enactment of P.L.   , c.   (C.   ) (pending before the Legislature as this bill)1 for labor rendered in service to an enterprise of the taxpayer.

    STATEMENT        This bill is entitled “The New Jersey Battlefield to Boardroom Act.”  The bill provides a corporation business tax credit and gross income tax credit for qualified wages of certain veterans.       The two credits established by this bill provide an employer with a credit in the amount of 10 percent of the wages paid to a qualified veteran.  The credits may not exceed $1,200 for each qualified veteran per tax year.  The bill defines a qualified veteran as a resident of this State initially hired by the taxpayer on or after January 1, that has been honorably discharged or released under honorable circumstances from active service, occurring on or after January 1, 1965, in any branch of the Armed Forces of the United States, and shows proof of military service by providing a copy of the DD-214 form, its equivalent, or federal activation orders showing service under Title 10, section 672 or section 12301, of the United States Code.  The bill requires that for purposes of the credits’ availability, the wages of a qualified veteran must be subject to the gross income tax and paid on or after January 1, 2020 but before January 1, 2024.  To be creditable, wages must also arise from employment of a qualified veteran for at least 185 business days of the applicable tax year.

     To qualify for a credit, the bill imposes a series of conditions on a taxpayer as an employer.  For a tax year that the credit is claimed, the bill requires that 25 percent of the taxpayer’s new employees be qualified veterans.  For tax years immediately subsequent to a prior credit year, the bill further requires that 50 percent of the qualified veterans hired in that prior tax year must remain employed by the taxpayer.       In addition to employment criteria, the bill conditions credit qualification on other aspects of veteran employment.  The bill requires a taxpayer to provide veteran support services that are accessible in the workplace.  The bill further conditions credit qualification on a taxpayer’s regular recruitment efforts to hire qualified veterans and their nuclear family members while providing support to outreach efforts of veteran support organizations.  The bill also conditions credit qualification on compliance with the federal Uniformed Services Employment and Reemployment Rights Act and the provision of privileges in excess of the rights protected by that act.       In addition to providing the terms of credit qualification, the bill contains provisions aimed at preventing potential misuse of the credit.  The bill prohibits taxpayers from simultaneously using the wages or employment of a qualified veteran to qualify for the credit and any other generally available employment incentive that comes in the form of a State tax credit or grant.  The bill also empowers the Director of the Division of Taxation to recapture credit, plus an additional 50% penalty, if the Director determines that the employer displaced employees to replace them with qualified veterans for the primary purpose of taking advantage of the credit.

     The credits established by this bill are limited in duration in that they are available for tax years commencing on or after January 1, 2020 but before January 1, 2024.