Republican and Democratic leaders have introduced legislation that would help businesses preserve jobs and expand operations in New Jersey.
The proposed legislation broadens the availability and revises the terms of financial assistance under New Jersey’s Business Retention and Relocation Assistance Grant (“BRRAG”) Program, which awards tax credits against the corporation business tax and various taxes on insurers
"When businesses threaten to leave New Jersey, we need the tools to act fast to keep them here and preserve jobs," said Senate President Stephen M. Sweeney (D-Gloucester/Cumberland/ Salem). "More than ever, we need to not only protect and create jobs, but to give companies the chance to deepen their New Jersey roots through long-term investments. Broadening the capabilities of the BRRAG program to meet the needs of businesses now will pay big economic dividends well into the future."
The current credit of $1,500 per employee would be increased to a maximum of $9,000, with the final amount being based on the total number of retained jobs. If a business failed to meet its job retention commitment, its credit award would be reduced proportionately and it would forfeit the unused credits.
"New Jersey was the only state in the nation to have fewer jobs at the end of the decade than it had at the beginning of the decade," stated Senator Joseph Kyrillos (R-Monmouth) a prime sponsor of the bill. "Until we reverse policies that see higher taxes as some sort of virtue and hold entrepreneurship in contempt, this state will continue to fall farther and farther behind our neighbors. It is time for the Governor and Legislature to reinvigorate the business climate by creating a state brand that attracts business and grows jobs."
The impetus of the legislation came after Morris Township-based Honeywell International was considering moving its 1200-employee headquarters from Morris Township to Pennsylvania. Honeywell executives decided to stay only after learning about possible tax reforms that would make operating a business in New Jersey more affordable.
"Honeywell was following the lead of so many other companies, such as E-Trade Financial and Archer Daniels Midland who could no longer afford to operate in New Jersey," stated Senator Anthony Bucco (R-Morris) who represents the township where Honeywell is located. "In order to keep New Jersey working we need to address the problem that the hemorrhaging of jobs to other states is a direct result of high taxes. This legislation is a step in that direction."
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