Lawmakers said Tuesday they are considering a bill that would grant tax breaks to businesses that hire New Jerseyans who lost their job during the COVID-19 pandemic.

The proposed “New Jobs for New Jersey Act” is meant to act as a lifeline to the record-high unemployment the state is experiencing as a result of the mass business closures over the past nine months.

More than 1.8 million New Jerseyans have filed for unemployment since March. When the executive orders to close businesses went into effect then, jobless claims surged to 214,836 filings for just the first week of April.

Claims dropped to less than 13,000 last week, but state officials warned that should the federal unemployment extension and freelancers benefits expire at the end of this month, then up to 412,000 New Jerseyans could be out of a job and with no financial assistance.

Casinos, sit-down dining, gyms, nail and hair salons, malls, theaters, non-essential and many other types of businesses had to stay closed during the spring, though they have been allowed to operate at limited capacity since the beginning of summer.

Under the proposed Senate Bill 1958, businesses with up to 100 employees could get refundable credits against their income or corporate business tax for each full-time employee they hire after April 1 next year.

“This tax credit will target those businesses most impacted by the COVID-19 pandemic, particularly in the service and entertainment industries,” reads a statement from the bill’s sponsor, Sen. Nilsa Cruz-Perez, D-5th District. “Our hope is that through this program, we can assist businesses so that they can remain open without laying off as many employees.”

The hire must have been out of work for at least 30 days and have no history of prior employment with the business. To qualify, the number of eligible employees in the 12 months following April 1, 2021 needs to be greater than in the preceding 12 months, according to the bill.

Tax credits are based on how much in payroll taxes the business pays for each eligible new employee.

The bill was approved in a 4-0 Tuesday vote in the Senate Labor Committee.