NJ A4007

Small employers with fewer than 20 employees may claim a tax credit against corporation business tax or gross income tax for paying employees' health benefits plan premiums that meet Affordable Care Act essential health benefits standards

Credit amounts are $250 per employee with single coverage and $500 per employee with family coverage when the employer pays 100% of the premium

Employers paying between 50% and 99% of premiums receive a proportionally reduced credit; those paying less than 50% receive no credit for that employee

Credits are prorated based on the portion of the tax year the employer paid for each employee's coverage, and total credits cannot exceed actual premium amounts paid

Combined credits cannot exceed 50% of tax liability, and unused credits cannot be carried forward to future years