NJ S2581

Creates the Recovery Tax Credit Program administered by the Division of Mental Health and Addiction Services, allocating up to $2,000,000 in tax credits annually beginning January 1, 2023.

Provides certified employers a tax credit of $1 per hour worked by eligible individuals in recovery from substance use disorder, up to a maximum of $2,000 per employee and 2,000 hours.

Requires eligible individuals to have worked a minimum of 500 hours for the certified employer and to have completed or be currently receiving treatment for a diagnosed substance use disorder.

Mandates that certified employers provide a recovery-supportive environment through formal relationships with local recovery or treatment providers and offer employer-sponsored health insurance meeting minimum essential coverage requirements.

Allows unused tax credits to be carried forward for up to seven years, with credits applied against either Corporation Business Tax or Gross Income Tax, not to exceed 50 percent of the taxpayer's liability.