STRENGTHENING NEW JERSEY’S ECONOMY

STRENGTHENING NEW JERSEY’S ECONOMY

TODAY’S ASSEMBLY STEPS ARE LATEST SIGNIFICANT MEASURES TAKEN TO BOLSTER STATE’S BUSINESS CLIMATE

(TRENTON) –Today’s Assembly efforts to help middle-class New Jerseyans and the small businesses that employ them emerge strong from the national economic crisis are the latest significant measures taken to strengthen New Jersey’s economy.

Bills advanced today would promote new jobs and retain existing ones by revamping small business taxes and enhancing grants and incentives for small businesses.

Legislation (A-3124) Assemblymen Louis Greenwald (D-Camden) and John McKeon (D-Essex) are sponsoring to enable businesses to write-down net operating losses for up to 20 tax years, as opposed to the currently allowed seven years, was released by the Assembly Budget Committee.

The bill would put New Jersey in line with neighboring states and help businesses recoup losses. The sponsors say the reform is especially needed by small businesses that might not otherwise be able to weather the current economic storm.

The Assembly Commerce and Economic Development Committee advanced several bills, including:

• A measure (A-2626) Assemblyman Joseph Vas (D-Middlesex) is sponsoring to modify how a manufacturer’s worldwide income is subjected to New Jersey taxes, which would benefit corporations that have a higher percentage of property and payroll in the state.

• A measure (A-2722) Vas, Greenwald and Assemblyman Albert Coutinho (D-Essex) are sponsoring to reshape how certain corporate sales made in other states are taxed and to eliminate a provision that increases a corporation’s entire net income that is taxable by New Jersey, creating a more accurate tax payment to the state. • A bill (A-2997) Vas and Coutinho are sponsoring to modify the Business Employment Incentive Program to allow co-ops to participate, give high-performing urban businesses better incentives and allow grant extensions.

• Legislation (A3294) Vas, Greenwald and Assemblymen Nelson Albano and Matthew Milam (both D-Cape May/Cumberland/Atlantic) are sponsoring to modify the Business Retention and Relocation Assistance Grant program to make it easier for small and mid-size businesses to take advantage of program benefits.

In the past nine months alone, the Assembly has advanced numerous significant measures that will strengthen the state’s economy and bolster its business climate.

They include:

• Sustained $275 million in business tax cuts imposed last fiscal year.

• Avoided a $350 million business tax increase and ensured benefits for out-of-work New Jerseyans by boosting the Unemployment Trust Fund.

• Helped businesses fighting the national economy by extending building permit approvals through July 1, 2010.

• Enacted health care reform to reduce the number of uninsured and slash the cost of health insurance.

• Approved seven corporate reform bills making New Jersey more competitive with neighboring states.

• Created and sustained jobs by authorizing $3.9 billion in school construction and allowing for housing projects at Fort Monmouth.

• Permitted preferences for state businesses in awarding contracts.

• Emphasized the agricultural industry’s importance by preserving the Department of Agriculture.

• Protected small business by expanding the Regulatory Flexibility Act.

• Helped businesses reduce energy costs by allowing the Board of Public Utilities to provide grants for combined heat and power production, energy efficiency projects and programs promoting renewable energy and energy efficiency.

• Provided a casino revenue tax deduction for certain promotional gaming credits.

• Enacted a new state budget with the largest spending cut in state history.

Greenwald said today’s actions will help New Jersey emerge strong from the national economic crisis.

“These actions, and others we have taken, coupled with those we take today and in the days to come, will position New Jersey to move forward through this unparalleled financial morass,” said Greenwald, (D-Camden).