Bipartisan legislation sponsored by Senator Steve Oroho (R-24) to allow businesses that were due to receive grants under the state’s Business Employment Incentive Program to now receive an equal tax credit in value was advanced by the Senate Budget and Appropriations Committee.
Sen. Steven Oroho’s legislation would allow businesses that were due to receive BEIP grants to instead receive a tax credit of equal value. (SenateNJ.com)
“Many businesses that signed deals with the state under BEIP to move to New Jersey or expand operations here have never received the full amount of incentives the State committed to provide in order to stimulate job growth,” said Oroho. “It’s critical for the continued operation of these businesses and the reputation of the state’s economic incentive programs that these obligations be fulfilled. As in any transaction, you’re only as good as your word.”
Senator Oroho’s S-3232 allows a business that was due to receive a grant under BEIP to direct the New Jersey Economic Development Authority to convert the grant to a refundable tax credit against its corporate, gross income, or insurance premium tax liability. The bill allows a business that does not pay corporate business taxes to apply to the authority for a tax credit transfer certificate that could be sold to another business.
“By now granting these businesses a tax credit the state can uphold its end of the deal without making cuts to any other needed services and the businesses will be in a better position to add or retain jobs and make capital investments in communities across New Jersey,” said Oroho. “These businesses have spurred significant economic activity and jobs in New Jersey. By fully honoring our commitments now through the use of these tax credits, we will show that we continue to be a ready partner in working to create more business.”