TRENTON – The Assembly Budget Committee on Wednesday approved a bill to provide Corporate Business and Gross Income Tax credits to employers who hire post-secondary students for internships.
The bill (A-3418) was approved by a vote of 8-0-4. Under the bill, corporation business tax credits and gross income tax credits would be granted to qualified enterprises for wages paid to qualified interns for the 2012 and 2013 tax years. A qualified intern would be any individual enrolled and in good standing at a New Jersey four-year institution of higher education, a New Jersey county college, or a New Jersey accredited post-secondary business, technical, trade or vocational school.
The credits are allowed in amounts equal to 40 percent of compensation paid to qualified interns or $600 of that compensation, whichever is less. Additional credits would be given to employers hiring three or more qualified interns.
The program will be limited to the first 5,250 qualified interns or 700 taxpayers. Employers will be required to pay interns no less than $8 per hour for a term of employment that lasted at least 12 weeks and included a minimum of 14 hours of service per week. All employers must certify that interns are working in New Jersey.
This program would be administered through the Division of Taxation and a report will conclude the effectiveness of the program following its termination. This bill is modeled after the recently enacted Philadelphia Internship Tax Credit program.
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