TRENTON – A measure sponsored by Senator Sandra Bolden Cunningham which would allow companies to take certain Business Employment Incentive Program (BEIP) grants to be taken as tax credits against their Corporation Business Tax (CBT) liability was unanimously approved today by the full Senate.
The BEIP program is administered through the State Economic Development Authority, and the incentives offered through the program are designed to help attract new business, thereby creating new jobs for State residents.
“This bill would allow companies to decide for themselves how to best utilize their BEIP grant dollars,” said Senator Cunningham, D-Hudson. “High taxes can place a significant financial strain on small businesses, and by allowing them the choice of how to use the funding, they can select the method that best suits their financial needs.”
Senator Cunningham’s bill, S-265, would allow employers that are part of the BEIP program to opt to receive their incentive payments as a CBT credit as opposed to a direct grant. In the event that the amount of the BEIP grant is higher than the CBT amount, the company would receive the remaining money as a tax refund.
“The goal of the tax credits is to encourage business growth, which would lead to increased economic vitality and expansion of the State’s job market. This bill is good for residents, business owners and the State economy,” said Senator Cunningham.
Grant amounts range between 10% and 80% of the total amount of State income taxes paid by newly hired employees.
This measure now heads to the Assembly for approval.