Legislation that would help businesses preserve jobs and expand operations in New Jersey was unanimously passed by the New Jersey State Senate today.
The bipartisan bill co-sponsored by Senator Joseph Kyrillos (R-Monmouth) 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.
"Jobs are highly mobile in today’s economy and can move anywhere with little notice," stated Kyrillos. "New Jersey faces a choice: either we incentivize businesses to relocate to New Jersey and expand operations here, or we watch as those employers choose to go elsewhere. By expanding the BRRAG program we will be better able to compete as a destination for business and send a message to unemployed New Jersey residents that state government will fight for every opportunity to put them back to work.”
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.
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, who could no longer afford to operate in New Jersey," concluded Senator Anthony Bucco (R-Morris) who represents the township where Honeywell is located an is a co-sponsor of the bill. "In order to keep New Jersey working we need to address the problem