Christie signs bipartisan legislation providing tax credits for businesses | Economy | NewJerseyNewsroom.com -- Your State. Your News.

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Christie signs bipartisan legislation providing tax credits for businesses

NJDollars030911_optBipartisan legislation creating the “Grow New Jersey Assistance Program, and designed to create or retain jobs in the state was signed into law Friday by Gov. Chris Christie.

The new law establishes a $200 million tax credit incentive program that emphasizes growth of New Jersey-based companies through capital investment, creation of new jobs and retention of existing jobs.

To be eligible for program tax credits, the law requires a business to make capital investments of at least $20,000,000 at a qualified business facility at which it will employ at least 100 full-time employees in retained full-time jobs, or create at least 100 new full-time jobs in an industry deemed desirable by the New Jersey Economic Development Authority.

Eligibility for program tax credits are based upon a determination by the EDA that the capital investment will yield a net positive benefit to the state and that the award of tax credits is a material factor in the business decision to create or retain the minimum number of full-time jobs.

The program’s cost falls under the $1.5 billion cap established under the Urban Transit Hub Tax Credit program. The law allows the initial $200 million program allocation to be increased by the board of the EDA if the board determines the credits to be reasonable, justifiable, and appropriate.

The new law requires that all applications for eligibility under the program shall be made to the EDA by July 1, 2014.

“Through the creation of GrowNJ, we are ensuring that critical economic development projects are moving forward and that businesses are staying, growing and creating jobs for New Jerseyans,” Gov. Chris Christie said. “Expanding the reach of these job-creating incentives will put people to work now in construction jobs and create long-term, permanent jobs for our families. This bipartisan bill puts into action an initiative of my Administration that recognizes and builds on the success of the Urban Transit Hub Tax Credit, while increasing the competitiveness of New Jersey as a business-friendly environment for job growth.”

“The private sector is becoming more and more aware that New Jersey’s government wants to help them grow their business instead of impeding it,” Assemblyman Gary R. Chiusano (R-Sussex), a co-sponsor of the bill, said. “Policies such as reducing payroll taxes and establishing the Red Tape Review Commission are some examples of why New Jersey’s economy is showing positive results.”

“Our state possesses an excellent infrastructure, including an abundance of skilled workers, an excellent transportation system and sites that are prime locations for investment. Job creation needs to occur in the private sector and ‘Grow NJ’ is a program that will help us capitalize on achieving this objective,” Assemblywoman Alison Littell McHose (R-Sussex), a co-sponsor, added.

Besides Chiusano and McHouse, the bill was co-sponsored by Senators Joseph Kyrillos (R-Monmouth) and Raymond Lesniak (D-Union); and Assembly members Anthony Bucco (R-Morris), Herb Conaway (D-Burlington), Albert Coutinho (D-Essex), and Ruben Ramos (D-Hudson).

—TOM HESTER SR., NEWJERSEYNEWSROOM.COM

 

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