SENATE, No. 2623

STATE OF NEW JERSEY

219th LEGISLATURE

INTRODUCED JUNE 29, 2020

Sponsored by:

Senator  JOSEPH P. CRYAN

District 20 (Union)

SYNOPSIS

     Allows corporation business tax and gross income tax credits to employers that provide implicit bias training to their employees.

CURRENT VERSION OF TEXT

     As introduced.

An Act allowing tax credits to employers that provide implicit bias training to their employees, supplementing P.L.1945, c.162 (C.54:10A-1 et seq.) and Title 54A of the New Jersey Statutes.

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

     1.    a.   A taxpayer shall be allowed a credit against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) equal to 100 percent of the cost of the implementation of an evidence-based implicit bias training program for the taxpayer's full-time and part-time employees.  An implicit bias training program, shall, at a minimum, train employees to recognize and diminish the impact of implicit bias within their field or profession.

     b.    The order of priority of the application of the tax credit allowed pursuant to this section, and any other credits allowed against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) for a privilege period, shall be as prescribed by the director.  The amount of the credit applied pursuant to this section against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) shall not reduce a taxpayer's tax liability to an amount less than the statutory minimum provided in subsection (e) of section 5 of P.L.1945, c.162 (C.54:10A-5).

     c.     As used in this section:

     "Implicit bias" means a bias in judgment or behavior that results from subtle cognitive processes, including implicit prejudice and implicit stereotypes, that often operate at a level below conscious awareness and without intentional control.

     "Implicit stereotypes" means the unconscious attributions of particular qualities to a member of a certain social group, influenced by experience, and based on learned associations between various qualities and social categories, including race and gender.

     2.    a.   A taxpayer shall be allowed a credit against the tax otherwise due for the taxable year under the "New Jersey Gross Income Tax Act" N.J.S.54A:1-1 et seq., in an amount equal to 100 percent of the cost of the implementation of an evidence-based implicit bias training program for the taxpayer's full-time and part-time employees.  An implicit bias training program, shall, at a minimum, train employees to recognize and diminish the impact of implicit bias within their field or profession.

     b.    The order of priority of the application of the credit allowed pursuant to this section, and any other credits allowed against the tax imposed pursuant to N.J.S.54A:1-1 et seq. for a taxable year, shall be as prescribed by the director.  The amount of the credit

applied against the New Jersey gross income tax imposed pursuant to N.J.S.54A:1-1 shall not reduce a taxpayer's tax liability to an amount less than zero.

     c.     (1)   A partnership shall not be allowed a credit under this section directly, but the amount of credit of a taxpayer in respect of a distributive share of partnership income under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., shall be determined by allocating to the taxpayer that proportion of the credit acquired by the partnership that is equal to the taxpayer's share, whether or not distributed, of the total distributive income or gain of the partnership for its taxable year ending within or with the taxpayer's taxable year. 

     (2)   A New Jersey S Corporation shall not be allowed a credit under this section directly, but the amount of the tax credit of a taxpayer in respect of a pro rata share of S Corporation income, shall be determined by allocating to the taxpayer that proportion of the tax credit acquired by the New Jersey S Corporation that is equal to the taxpayer's share, whether or not distributed, of the total pro rata share of S Corporation income of the New Jersey S Corporation for its privilege period ending within or with the taxpayer's taxable year.

     d.    As used in this section:

     "Implicit bias" means a bias in judgment or behavior that results from subtle cognitive processes, including implicit prejudice and implicit stereotypes, that often operate at a level below conscious awareness and without intentional control.

     "Implicit stereotypes" means the unconscious attributions of particular qualities to a member of a certain social group, influenced by experience, and based on learned associations between various qualities and social categories, including race and gender.

     3.    This act shall take effect immediately and shall apply to privilege periods and taxable years beginning on or after January 1 next following enactment.

STATEMENT

     This bill provides corporation business tax and gross income tax credits to businesses that provide implicit bias training to their employees.  The amount of the credit would be equal to 100 percent of the cost of the implicit bias training provided by the employer. 

     Implicit bias (or "unconscious bias") training is designed to expose people to their unconscious biases, provide tools to adjust

automatic patterns of thinking, and ultimately eliminate discriminatory behaviors.  The bill requires an implicit bias training program, at a minimum, to train employees to recognize and diminish the impact of implicit bias within their field or profession.

     The bill defines "implicit bias" as a bias in judgment or behavior that results from subtle cognitive processes, including implicit prejudice and implicit stereotypes, that often operate at a level below conscious awareness and without intentional control.