TRENTON, N.J. – Due to pandemic conditions and the major shift to remote work, businesses that received tax credits through the New Jersey Economic Opportunity Act of 2013 are struggling to meet a requirement that employees spend 80 percent of their work time on-site.
To protect jobs and businesses, Assemblyman Ron Dancer has introduced a bill (A5486) building remote work flexibility into the current law. Businesses would be able to retain and continue to be eligible for tax credit awards while employees work at any location during a state of emergency.
“Businesses are making a good faith effort to keep workers employed and healthy by allowing them to work from home during the coronavirus pandemic. Unfortunately, businesses will lose their tax credits if too many employees are forced to continue to work remotely,” explained Dancer (R-Ocean). “These tax credits are more important than ever as we work toward economic recovery. It’s time to update the law to accommodate more flexible and practical work environments during states of emergency.”
As a condition of receiving the EDA’s 2013 tax credit award, businesses agreed that 80 percent of employees would be at the worksite for at least 80 percent of the time. Under current law, a business must forfeit tax credit amounts until it can restore the number of full-time employees working at a qualified facility to meet the “80/80” policy.
The bill has been referred to the Assembly Commerce and Economic Development Committee.