NJ Tax Incentive Programs May Be Revised
By Phil Gregory, WBGO News
Trenton. March 13, 2013
New Jersey lawmakers are considering some major revisions to the state’s tax incentive programs in an effort to boost employment.
The legislation would merge five tax break programs into two. One of them would be focused on job creation, the other on economic development.
Assembly Commerce Committee chairman Al Coutinho is the primary sponsor of the bill. He says the revisions will help New Jersey stay competitive.
“We will have stronger incentives than New York and Pennsylvania and put us in a competitive position to be able to attract new jobs and also very importantly not to lose existing jobs.”
Michael Egenton is Senior Vice President of the New Jersey Chamber of Commerce. He says the changes streamline the process for businesses to take advantage of the incentives.
“It really opens up the door to a lot of businesses both large and small particularly the middle market businesses will have an opportunity to look at New Jersey to expand their facilities.”
The biggest tax incentives would be given for development projects in urban transit hubs, places with high poverty levels, and areas damaged by Hurricane Sandy.
Assemblyman Coutinho says the program will pay for itself.
“We’re providing incentives for business to make investments. Those investments will generate tax revenue, and we’re using that tax revenue to give them their credit back. If we do not get them to make this investment, that money never exists.”