TRENTON � A measure sponsored by Senator Sandra Bolden Cunningham which would allow certain Business Employment Incentive Program (BEIP) grants to be taken as tax credits against their Corporation Business Tax (CBT) liability was approved today by the Senate Budget and Appropriations Committee.
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.
�By giving companies a choice of how they receive their BEIP grants, they will be able to decide for themselves how to best utilize the funding,� said Senator Cunningham, D-Hudson, who sits on the Senate Budget Panel. �Often taxes put such a significant financial strain on businesses � especially small businesses, and this bill would allow them to choose method that works best for them.�
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.
�These tax credits would encourage business growth, which would lead to increased economic vitality and expansion of the State�s job market. This bill is a win-win 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 was approved by the Senate Economic Growth Committee on May 8. It now heads to the full Senate for a vote.