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Measure revises state's business retention and relocation program

Gov Chris Christie Friday signed bipartisan legislation designed to revise the state's Business Retention and Relocation Assistance Grant (BRRAG) program.

Administered by the state Economic Development Authority, the BRRAG program attempts to help businesses preserve jobs, expand operations, and reinvest in the state through the award of corporation business tax credits.

In July, the governor visited Honeywell International Inc. in Morris Township to announce the administration's efforts to strengthen the state's business incentive offerings, including proposing the program change.

"I'm pleased to sign this legislation today that follows through on my proposal to reform and improve this business tax credit, thereby strengthening my administration's business and retention efforts," Christie said. "This bill means real jobs for New Jersey, both now and in the future.

"The changes now made by this legislation were not only instrumental in Honeywell's decision to stay and expand their operations in New Jersey, but will enhance an incentive program for job creation and business investment that is crucial to economic growth in our state," the governor said."

The BRRAG program, created in 1996, will be expanded and brought in line with comparable programs from other states in order to ensure New Jersey remains competitive among state incentive programs. The program will now provide a maximum tax credit of $2,250 per year for six years, per job retained in the state. The current program provides for a maximum one-time tax credit incentive of $1,500 per job retained.

"The legislation will keep 10,000 jobs in New Jersey," Lt. Gov. Kim Guadagno declared. "We have kept our promise to business and will continue to work to put New Jerseyans back to work. The revisions to the BRRAG program build on the success while ensuring more businesses have an opportunity to participate."

The revised BRRAG program is aimed at encouraging businesses to expanding in New Jersey, provide the maximum benefits under the program to those that demonstrate an investment by making substantial capital investments in the state.

The administration maintains the revisions to the program do not increase the existing $20 million annual cap on the program.

Christie's action comes as the state Senate and Assembly on Monday prepare to approve another 12 "Back to Work NJ" bills that sponsors believe will help bolster employment and economic growth.

On Thursday, the legislators passed nearly a dozen-and-a-half measures to cut business taxes and provide on-the-job training for unemployed workers. New Jersey Policy Perspective, a Trenton-based think tank, said the package of bills could cost the financially-struggling state government as much as $805 million.

Monday's sessions will focus on 13 bills that would cut red tape and provide incentives for businesses to set roots in New Jersey, and provide retirees with an income tax cut to allow them to afford to remain in their homes.

"‘Back to Work NJ' has been about putting the economy front-and-center, where it belongs," Senate President Stephen M. Sweeney (D-Gloucester) said Friday. "Residents need good jobs, seniors need the ability to stay in their homes and keep their local economies rebound and businesses need a good place to locate. There's no reason New Jersey can't move to the top of the list of great places to be."

"These initiatives are a great step toward retooling New Jersey as an economic force primed to lead the pack in the economic recovery," Assembly Speaker Sheila Y. Oliver (D-Essex) said. "We're creating jobs for residents, easing outdated burdens on businesses and sparking economic growth throughout the state by encouraging investment. It's a plan that benefits everyone."

Through the New Jersey Partnership for Action, the Christie-Guadagno Administration is attempting to implement an aggressive economic development agenda designed to jumpstart the state's economy through sustainable job creation and economic expansion.

Senate sponsors of the bill (S-2370) signed by the governor were Joseph Kyrillos (R- Monmouth) and Fred Madden (D-Gloucester) in the Assembly, the sponsors were Oliver, Jon Bramnick (R-Union), Anthony M. Bucco (R-Morris), Albert Coutinho (D-Essex) and Nellie Pou (D-Passaic).

— TOM HESTER SR., NEWJERSEYNEWSROOM.COM