On December 15, Governor Murphy, Senate President Sweeney, Assembly Speaker Coughlin, Senator Ruiz and Assemblywoman Pintor Marin announced an agreement on a tax incentive reform package following almost two years of negotiations over reestablishing this crucial attraction and retention tool for New Jersey businesses.
A-4/S-3295 establishes the "New Jersey Economic Recovery Act of 2020" and includes a total cap of $11.5 billion over six years for a variety of different incentive programs.
The legislation creates the NJ Emerge program to take the place of the Grow New Jersey program and proposes the NJ Aspire program, which will replace the Economic Redevelopment and Growth (ERG) gap financing program.
The bill also creates or expands several other programs, including:
· the "Main Street Recovery Finance Program Act" which provides grants, loans, and loan guarantees to small businesses
· the "New Jersey Innovation Evergreen Act" which auctions tax credits for cash that can be used to invest in innovation as a catalyst for economic growth and to advance the competitiveness of the state’s businesses in the global economy
· the “Food Desert Relief Act” which provides tax credits in order to incentivize businesses to establish and retain new supermarkets and grocery stores in food desert communities, such as Camden
· the "New Jersey Community-Anchored Development Act" which provides tax credits to anchor institutions to incentivize the expansion of targeted industries in the New Jersey and the continued development of certain areas of the state
The CCSNJ will testify on A-4/S-3295 in both the Assembly Appropriations Committee and the Senate Budget and Appropriations Committee tomorrow, December 18 at 11 a.m. The bill is scheduled for a full floor session vote in both chambers on Monday, December 21 and is expected to pass.
The CCSNJ released the following statement on the announcement of the agreement:
“The CCSNJ applauds Governor Murphy, Senate President Sweeney, Assembly Speaker Coughlin and all involved in crafting the "New Jersey Economic Recovery Act of 2020.” This Act will reestablish a tax incentive program in New Jersey, which is a vital tool to attract and retain businesses and crucial to the state’s overall economic recovery. The need for incentives in New Jersey is undeniable, and particularly so following the devastating impact the pandemic has had on the business community. We look forward to learning more details on the proposal, which we hope will encourage both larger and smaller scale incentives for businesses of all sizes, as well as geographic considerations regarding where projects can be located. These types of provisions, as well as assuring the programs are not laborious to apply for and comply with long-term, will not only ignite the State’s economic recovery but make New Jersey more competitive.”
If you have any questions, please contact Hilary Chebra, Manager of Government Affairs at hchebra@chambersnj.com.
