NJ S1362

New Jersey small business start-ups receive gross income tax credits of 75% in their first profitable year, 50% in the second year, and 25% in the third year

Qualifying businesses must be registered in New Jersey, derive a majority of income from in-state operations, have no more than 50 employees, and earn no more than $100,000 in net income during their first profitable year

Taxpayers must obtain prior written authorization from the Director of the Division of Taxation before claiming credits, demonstrating the business is not related to other businesses they operate or was not created solely to receive the tax benefit

Credits apply only to the specific taxable year in which they are earned and cannot be carried forward or backward to offset other years' tax liabilities

Applications are automatically approved if the director fails to respond within 90 calendar days of receiving a complete application