CCSNJ Support of S-3759
TO: Members of the Senate Economic Growth Committee
FROM: Hilary Chebra, Manager, Government Affairs, CCSNJ
RE: S-3759 (Gopal/Scutari)
The Chamber of Commerce Southern New Jersey (CCSNJ) would like to voice our opposition to S-3759 (Gopal / Scutari), which provides tax credits to qualified small employers in industries impacted by COVID-19 emergency.
As written, the bill allows qualified small employers to receive a tax credit for wages paid to qualified employees. Under the bill, a qualified small employer is a business entity with an average weekly number of full-time employees of not more than 100 employees during the taxable year. The credit would be equal to 10 percent of wages paid by the small employer to an employee, provided that the amount of the credit is equal to 20 percent of wages and the employer is located in a COVID-impacted county. COVID-impacted county is defined as a New Jersey county with an average monthly unemployment rate that is greater than or equal to the state’s average monthly unemployment rate for that period.
This bill will provide much needed relief to struggling small businesses. The business community continues to regain its footing following the devastating impact of the pandemic. It is well-known that New Jersey has seen the permanent closure of a third of its small businesses. Even with restrictions lifted, many businesses cannot to return to pre-pandemic operations due to a labor shortage.
The CCSNJ appreciates the special attention given to New Jersey counties with an average monthly unemployment rate that is greater than or equal to the state’s average. During the height of the pandemic, Atlantic County had an unemployment rate double that of the state and nation at 33.3 percent, with Atlantic City up to 29.1 percent percent according to the U.S. Department of Labor. That region, ad others within the South Jersey region, continue to struggle to recover.
For these reasons, the CCSNJ urges you to support S-3759 (Gopal/Scutari).