NJ S1877

Restaurant owners in New Jersey would receive tax credits against both corporation business tax and gross income tax to offset costs from the State's 2019 minimum wage increase enacted under P.L.2019, c.32.

Credits are calculated as the difference between the current required minimum wage rate and the pre-2019 rate, multiplied by employee hours worked, with a flat $3.00 per hour credit for tipped employees.

Maximum credit is capped at $12,500 per employee, and delivery employees are excluded from the calculation.

Eligibility is limited to restaurant owners with five or fewer locations, with credits claimable for no more than three locations per taxpayer.

Credits are available for ten tax years following enactment, and the employee count used for calculations is capped at the restaurant's staffing level from the day before the 2019 minimum wage law took effect.