New Jersey Assembly Bill A3682

New Jersey 2022-2023 Regular Session

• Introduced: 3/21/22
• Refer: 3/21/22
• Refer: 6/9/22

Caption

Establishes "Recovery Tax Credit Program"; incentivizes hiring and continued employment of certain individuals in recovery from substance use disorder.

Impact

This bill will have significant implications for state tax laws, specifically regarding employer tax credits. Certified employers can receive a tax credit of $1 for each hour worked by an eligible employee, provided that specific conditions are met. These conditions include the employee working at least 500 hours and the credit being capped at $2,000 per eligible employee. This initiative may help foster employment opportunities for a vulnerable population while also potentially reducing the stigma associated with hiring individuals in recovery.

Summary

Assembly Bill A3682 establishes the 'Recovery Tax Credit Program' designed to incentivize the hiring and continued employment of individuals in recovery from substance use disorders. Administered by the Division of Mental Health and Addiction Services within the Department of Human Services, this program provides tax credits to certified employers who support employees in recovery. The bill aims to promote inclusion in the workforce and to alleviate unemployment challenges faced by individuals recovering from addiction.

Contention

Notable points of contention surrounding A3682 include concerns about the efficacy of tax credits in achieving the intended outcomes of employment for individuals in recovery. Critics may worry that relying solely on financial incentives may not adequately address the myriad challenges faced by employees in recovery, such as access to support services. Additionally, the bill's criteria for certified employers may be debated in terms of their rigor and capacity to ensure a supportive work environment.