(TRENTON) –
Legislation Assembly Democrats Craig J. Coughlin, Pamela R. Lampitt, Cleopatra
Tucker and Daniel R. Benson sponsored to help college students find jobs by
offering tax credits to employers who hire them for internships was released
Monday by a Senate panel.
The bill is
part of continuing Assembly Democratic job creation efforts. It was approved by
the Assembly in December and released Monday by the Senate budget committee.
“This is an
innovative and creative job creation bill geared toward young workers struggling
in this economy,” said Coughlin (D-Middlesex). “This bill is designed to
encourage businesses to hire post-secondary students to learn firsthand about
their chosen field of study and help them get their foot in the door to
eventually secure full-time employment.”
“No single
piece of legislation will pull us out of this sluggish economy, but measures
such as this will certainly help.” said Lampitt (D-Camden/Burlington). “It is
our obligation to provide New Jersey’s students with the best possible
educational experience and internships are one of the best ways to prepare our
young people for the workforce and beyond.”
Under the bill
(A-1271), corporation business tax credits and gross income tax credits would be
granted to qualified enterprises for wages paid to qualified interns. 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.
“Creating jobs,
no matter how many, must be our number one priority,” said Tucker (D-Essex).
“In a market as tight as this one, young people need every advantage possible to
help break into their chosen field.”
“We need to
create jobs in every shape and form, and this is one way to create job
opportunities for our younger residents while helping businesses,” said Benson
(D-Mercer/Middlesex). “It’s a creative and unique approach that should prove
beneficial to our state.”
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 $8.00 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.
The bill can
now be considered by the Senate for final legislative approval.
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