VAS SAYS GLOBAL MELTDOWN MEANS STATE MUST REVAMP SMALL BUSINESS TAXES AND ENHANCE GRANTS AND INCENTIVES

VAS SAYS GLOBAL MELTDOWN MEANS STATE MUST REVAMP SMALL BUSINESS TAXES AND ENHANCE GRANTS AND INCENTIVES

Proposed Legislation Aims to Further Democratic Efforts to Boost New Jersey Economy

(PERTH AMBOY) – Assembly Commerce and Economic Development Chairman Joseph Vas today said the global economic meltdown means the state must pass a sweeping package to promote new jobs and retain existing ones by revamping small business taxes and enhancing business grants and incentives.

Vas said aggressive steps are needed to ensure state businesses and the workers they employ successfully weather the economic crisis.

“We need decisive action to keep New Jerseyans gainfully employed and continue making the state a great place to do business,” Vas said. “So much attention is paid to luring new jobs to the state, but now more than ever our effort must focus both on attracting new jobs and retaining existing ones.”

The package includes:

· A measure (A-2626) 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, Assemblyman Lou Greenwald (D-Camden) and Assemblyman Albert Coutinho (D-Essex) are sponsoring to reshape how certain corporate sales made in other states are taxed. It would also 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 a business retention and relocation program to help businesses stay in New Jersey and lure new ones to the state.

"It's time to turn these concepts into law," Vas said. "The state can't sit idly by and watch the small businesses that employ our hard-working middle-class struggle."

The Assembly on Oct. 6 held unprecedented committee hearings focused solely on the economy, advancing 19 bills to help businesses, protect homeowners and assist consumers.

In the past nine months alone, the Assembly has advanced significant measures to strengthen the state’s economy and bolster its business climate. They include:

· Sustaining $275 million in business tax cuts imposed last fiscal year.

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

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

· Enacting health care reform to reduce the number of uninsured and slash the cost of health insurance.

· Approving seven corporate reform bills making New Jersey more competitive with neighboring states.

· Creating and sustaining jobs by authorizing $3.9 billion in school construction and allowing for housing projects at Fort Monmouth.

· Permitting preferences for state businesses in awarding contracts.

· Emphasizing the agricultural industry’s importance by preserving the Department of Agriculture.

· Protecting small business by expanding the Regulatory Flexibility Act.

· Helping 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.

· Providing a casino revenue tax deduction for certain promotional gaming credits.

· Enacting a new state budget with the largest spending cut in state history.