SENATE MILITARY AND VETERANS' AFFAIRS COMMITTEE

STATEMENT TO

SENATE, No. 1204

with committee amendments

STATE OF NEW JERSEY

DATED: FEBRUARY 19, 2026

      The Senate Military and Veterans' Affairs Committee reports favorably and with committee amendments Senate Bill No. 1204.

     As amended by the committee, this bill is entitled the “New Jersey Battlefield to Boardroom Act.”  The bill provides a corporation business tax credit and gross income tax credit for qualified wages of certain veterans. 

     Under the bill, as amended, the two credits established by this bill provide an employer with a credit in the amount of 10 percent of the wages paid to a qualified veteran.  The credits may not exceed $1,200 for each qualified veteran per tax year.  The bill defines a qualified veteran as a resident of this State initially hired by the taxpayer on or after the date of enactment of the bill that has been honorably discharged or released under honorable circumstances from active service, occurring on or after January 1, 1965, in any branch of the Armed Forces of the United States, and shows proof of military service by providing a copy of the DD-214 form, its equivalent, or federal activation orders showing service under Title 10, section 672 or section 12301, of the United States Code. 

     Under the bill, the corporate business tax credit will be applicable after December 31 following the date of enactment of the bill and ending before January 1 of the fifth year thereafter.  For the purposes of the gross income tax credit, the credit will be applicable commencing on or after January 1 following the date of enactment of the bill and for the next four taxable years thereafter. 

     To qualify for a credit, the bill imposes a series of conditions on a taxpayer as an employer.  For a tax year that the credit is claimed, the bill requires that 25 percent of the taxpayer’s new employees be qualified veterans.  For tax years immediately subsequent to a prior credit year, the bill further requires that 50 percent of the qualified veterans hired in that prior tax year must remain employed by the taxpayer. 

     In addition to employment criteria, the bill conditions credit qualification on other aspects of veteran employment.  The bill requires a taxpayer to provide veteran support services that are accessible in the workplace.  The bill further conditions credit qualification on a taxpayer’s regular recruitment efforts to hire qualified veterans and their nuclear family members while providing support to outreach efforts of veteran support organizations.  The bill also conditions credit qualification on compliance with the federal Uniformed Services Employment and Reemployment Rights Act and the provision of privileges in excess of the rights protected by that act. 

     In addition to providing the terms of credit qualification, the bill contains provisions aimed at preventing potential misuse of the credit.  The bill prohibits taxpayers from simultaneously using the wages or employment of a qualified veteran to qualify for the credit and any other generally available employment incentive that comes in the form of a State tax credit or grant.  The bill also empowers the Director of the Division of Taxation to recapture the credit, plus an additional 50 percent penalty, if the director determines that the employer displaced employees to replace them with qualified veterans for the primary purpose of taking advantage of the credit.  The bill, as amended, also provides that the total value of tax credits approved cannot exceed $10,000,000 during any fiscal year.

      This bill was prefiled for introduction in the 2026-2027 session pending technical review.  As reported, the bill includes the changes required by technical review, which has been performed.

COMMITTEE AMENDMENTS:

      The committee amended the bill to update the applicable years and to clarify that the total value of tax credits approved cannot exceed $10,000,000 during any fiscal year.