“Today we read of yet another company that could take 1,000 hard working employees and families to a state where it reportedly costs as much as 20 percent less to do business,” said Pennacchio. “We know from talking with employers that we have to take feasible steps to address the high energy costs and overall cost of doing business in New Jersey that puts companies here at a steep disadvantage and makes it much more difficult to add jobs. We also need a fuller understanding of how New Jersey’s tax policies and incentive programs stack up to those in other states.”
This “Reducing Excessive Costs” package of legislation is the third phase of Senate Republicans’ statewide rollout of a new six-part job creation and economic growth package, which will not cost taxpayers extra money and should easily attract bipartisan sponsors and support.
“I’m pleased today to announce measures to help lower excessive costs for businesses in New Jersey and to make it easier for companies to grow and expand right here in communities across New Jersey, without costing taxpayers extra money,” Pennacchio said. “This package of legislation will help make our state more competitive by cutting energy costs so employers can spend on growth and expansion, and it will cut development fees and restore grants that barring a reduction in New Jersey taxes and fees make it feasible for companies to expand here. By taking a deeper look at New Jersey’s tax and incentive programs this legislation will provide a clear picture of what else needs to be done to help retain and attract more businesses and jobs in communities across the state.”
Here is a synopsis of the “Lowering Excessive Costs” bills unveiled today by the Senator:
1) Cuts energy bill surcharges that fund underutilized and extraneous programs. This bill will lower energy costs for businesses, making it easier for them to hire more workers and expand operations in New Jersey. Reducing this cost will not add any stress to the General Fund of the State Budget. (To be introduced immediately).
2) Creates a task force to study and compare the effects of New Jersey’s tax policies and tax incentive programs to those in other states. This bill will provide greater information as to whether the state’s tax incentive programs are successful and insight as to how the state’s tax policies stack up against those of competing states. (To be introduced immediately).
3) Requires Division of Taxation to study the impact the state’s business income tax has on employment and businesses coming to and leaving New Jersey. This bill will give state leaders a deeper understanding of how the state’s tax policies effect job creation and business owners’ decisions to operate in New Jersey and will hopefully lead to policies that will help keep more businesses and jobs in the state. (Kyrillos S-695).
4) Eliminates commercial development fees to fund affordable housing that were mandated in 2008 by Governor Corzine. By repealing the “Statewide Non-Residential Development Fee Act” this bill removes an onerous impediment to job creation and new business development in New Jersey. (Beck S-934).
5) Restores the state’s Business Employment Incentive Program grants for businesses that were cut from the Fiscal Year 2015 state budget. Restoring the BEIP grants will help businesses add thousands of jobs and increase New Jersey’s ability to attract and retain businesses, and yet it will not impact the State Budget because the FY15 State Budget was originally designed to cover this expenditure and would still have enough funds for it after the Governor’s budget vetoes. (To be introduced immediately).
In the coming weeks, the media will be advised as Senate Republicans continue to tour the state to help grow the economy and create opportunities for people, by unveiling more new legislation in these three remaining categories of the jobs bill package:
- Reducing Burdensome Regulations
- Enhancing Tourism & Agriculture
- Evaluating & Improving New Jersey’s Job Creation Efforts
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