Bill Would Expand Tax Credits for Business Growth in Urban Centers and Throughout State
TRENTON – Legislation sponsored by Senators Sandra Bolden Cunningham, Raymond J. Lesniak and Barbara Buono that would expand two of the state’s economic development incentive programs to encourage property investment, development and job creation was approved today by the full Senate.
“By expanding successful programs such as the Urban Hub Tax Credit and Grow NJ, that have been proven to create jobs, we can continue to encourage redevelopment and capital improvements in urban centers, abandoned properties, and across the state,” said Senator Cunningham, D-Hudson. “Increasing the amount of tax credits available to businesses that are putting people back to work in the Garden State is a common-sense approach that will continue to encourage a positive economic growth climate in the state.”
The bill (S-1562) would increase the maximum amount of tax credits allowable under the Urban Hub Tax Credit Act from $1.5 billion to $2.5 billion and under the Grow New Jersey Assistance Act from $2 million to $4 million.
“The Urban Hub Tax Credit and Grow NJ Programs have created public-private partnerships throughout the state where private companies invest in properties and businesses and create jobs for New Jersey workers and, in return, receive a tax credit,” said Senator Lesniak, D-Union. “These programs are effective tools to help incentivize companies to stay and expand their businesses in New Jersey and it is important that we continue to provide funding for them. At the end of the day, this is the sort of investment that will yield results for people who have been struggling to find work in the current economic crisis.”
The Urban Hub Tax Credit Program provides tax credits to businesses who invest in capital investments and development in one of nine urban municipalities: Camden, East Orange, Elizabeth, Jersey City, Newark, New Brunswick, Paterson, Trenton or Hoboken. As of March 2011, there were ten approved Urban Transit Hub Projects resulting in over 1,400 new jobs.
The Grow NJ Program is a job-based tax credit incentive program designed to encourage businesses to embark on large development or renovation projects that would create or retain at least 100 jobs in a new facility.
“These credit programs have created jobs and capitol investment opportunities and have helped sustain the construction industry as we have worked to rebound from a national recession,” said Senator Buono, D-Middlesex. “By incentivizing development and job growth in under-utilized communities and abandoned buildings, we have been able to reverse the economic freefall, create jobs and promote smart growth.”
The bill was approved by the Senate with a vote of 35-0. It now heads to the General Assembly for further review.