Gov. Phil Murphy at a press conference on tax incentives in Cherry Hill.
While Gov. Phil Murphy paints a bright picture of new economic incentives program for New Jersey, NJBIA is concerned about what is going to happen when the existing incentive programs expire in less than 30 days and called for their extension until new programs are enacted.
Murphy was in Cherry Hill to promote his vision of economic development, calling for the creation of new tax incentives that are targeted, transparent, and capped.
“What this is about is making sure we have policies in place that don’t just allow some to do well, but which allow entire communities to do well,” Murphy said. “Our proposed incentives meet this test. Our current program failed this test.”
Murphy’s proposed incentives are:
- NJ Forward – This jobs-based program will provide credits to companies engaged in high-growth industries, U.S. businesses creating a Northeast headquarters, foreign businesses creating a U.S. headquarters, and major job retention projects.
- NJ Aspire – This program will catalyze investments in commercial, residential, and mixed-use projects through a place-based gap financing program.
- Brownfields Redevelopment Program – This program will pair with EDA’s Brownfields Loan Program to catalyze more remediation projects and increase job creation.
- Historic Preservation Tax Credit Program – This program, modeled after the National Historic Tax Credit program, will partially reimburse developers who revitalize income-producing historic buildings.
- Innovation Evergreen Fund – This fund is designed to supercharge venture capital investment into Garden State startups.
These programs however would have to be approved by the Legislature, and so far, no legislation has been introduced. In the meantime, New Jersey’s existing programs, Grow NJ and Economic Redevelopment and Growth (ERG), are set to expire June 30.
“NJBIA agrees with the governor that responsible tax incentives play a key role in the state’s economic development strategy and that oversight of the effectiveness of these programs is appropriate,” NJBIA President and CEO Michele Siekerka said in a written statement after the press conference.
“However, we also believe an extension of the current program or a transitional arrangement while a new program is established is critical, as New Jersey remains highly challenged to attract and retain both large and small business and drive economic growth,” Siekerka said. “To let these programs cease, whether it’s a week, a month or a year, will unquestionably strike at New Jersey’s competitiveness.”
NJBIA also disagreed with the governor’s assertion that existing programs were failures.
“Our many good actors in the business community who have worked diligently to meet program requirements have created capital investment and jobs in New Jersey that, in many cases, would have gone elsewhere without these incentives,” Siekerka said.
This has worked out well for New York, so let’s go all in. (sarcasm)
The problem with any incentives is they end and then you are stuck in a state with a ridiculous tax load. No one is falling for it in NY, and they aren’t going to fall for it in NJ either.
It is quite telling that there is not a single Assembly or Senate sponsor for the plans being put forth by the Governor. Secondly, should NJ succeed, we will be the first Economy in the history of the world to tax ourselves into prosperity. Think about that.
Here’s my vision for taxes in NJs future
They go up
Spending never gets controlled
The state goes bankrupt, eventually.
Illegals get benefits but not taxpayers
Everyone blames everyone else.
The government shuts down
Nobody notices or cares
Companies aren’t going to put up with this crap and will continue to leave. The business community is onto the discriminatory scam of incentives. The companies that are here get screwed while newcomers get freebies. The companies that look at New Jersey aren’t going to trust the State not to claw back the money. The ONLY thing that will properly restore NJ will be to revolutionize and improve the business climate for all business without exception or special treatment. Governor Murphy treats the NJ economy like a science project he lords over and you must apply to him for the privilege of doing business in NJ. Total scam that has got to stop or we aren’t going to have a State left. Murphy has no skin in the game whatsoever… not even from here… and absolutely no perspective on what made NJ the economic powerhouse it once was. Murphy just told every business in NJ with this bonehead move… hey if you don’t like it leave because fair competitive treatment is only for newcomers. Such a disgrace. No wonder why people outside of NJ hate us and don’t trust and find us the most corrupt State in the union.
And incentives for small business??? Nope, keep screwing the mom and pop. I’m already incorporating a new business to provide hr and accounting services (me) for my business and I will be doing these services at my home in FL. Guess how much profit gets left in the NJ corp???
Don,
Check out the NJ Clean Energy Program. This is incentives for existing small businesses in NJ. The program pays up to 70% to replace lighting with LEDs and HVAC units to high efficiency units. These changes save significantly on operational costs.
Over 7000 businesses have already received grants of up to 125k.
So, there are in fact incentives for small businesses in NJ.
Don’t you love it when the government thinks it knows which businesses will prosper and need to get special tax deals? Meanwhile, us proven old dogs that are paying millions in payroll and property tax will continue to execute our strategies to escape the political cesspool known as New Jersey before we get bankrupted by a union-owned political class that has no self-control.