Gov. Phil Murphy today conditionally vetoed legislation that would have extended New Jersey’s existing economic incentive programs until he and the legislature agree on how to replace them. Instead, the governor offered the Legislature his vision for economic incentives targeted more toward innovation-based companies and startups.
NJBIA strongly supported the extension bill. While NJBIA is open to the governor’s proposals for economic development, President and CEO Michele Siekerka said today that a conditional veto is not the way to go about establishing such policies.
“To achieve the goal of a responsible and comprehensive tax incentive program, our policymakers must work together to deliver a program that makes New Jersey regionally competitive,” Siekerka said in a statement. “Trying to accomplish this through a conditional veto process does not lend itself to this outcome.
“We need our policymakers to come together immediately, sort out their differences and get a program back on the books that will allow our state to get back in the game. Absent a program, New Jersey remains without that much needed mechanism to level the playing field against our regional competitors— all of whom have a much more favorable tax structure and business climate.
“Any notion that New Jersey hasn’t already been damaged by the passing of 54 days without a tax incentive program is just wrong. Further, the delay in the awarding of 2018 tax credits has unquestionably had a chilling effect on businesses that are considering coming to or staying in New Jersey.”
Read the full statement here.
New Jersey’s two main incentive programs, Grow NJ and the Economic Redevelopment and Growth Grant programs, expired on July 1. The legislation the governor vetoed would have extended them until Jan. 31.
Read the CV here.