FISHER BILL TO SPUR ECONOMIC DEVELOPMENT IN NEW JERSEY CLEARS COMMITTEE

FISHER BILL TO SPUR ECONOMIC DEVELOPMENT IN NEW JERSEY CLEARS COMMITTEE
Measure Would Provide Incentives to Small Businesses that Relocate Employees In-State

(TRENTON) - Legislation Assemblymen Douglas H. Fisher sponsored to expand tax credit eligibility to small businesses that relocate 50 or more employees within New Jersey was released today by an Assembly committee.

"Many of Cumberland and Salem Counties key businesses are manufacturing firms with fewer than 100 employees," said Fisher (D-Cumberland/Salem/Gloucester). "We must promote the growth of small business and industry in New Jersey to create new jobs and increase our state's competitiveness. These tax credits could help us retain our state's small businesses."

The legislation (A-1696) would amend the state's "Business Retention and Relocation Assistance Act" to provide incentives for smaller businesses to relocate from outside the state to a new site within the state. The bill would allow businesses with 50 or more full-time employees to obtain corporation business tax grants or insurance premium tax credits. Under current law only larger businesses with 250 or more full-time jobs or more are eligible to receive these tax credits.

"We must make every effort to encourage small manufacturing firms to relocate into New Jersey," said Fisher. "Our long-term economic vitality depends upon the growth of New Jersey's small businesses."

The measure also would include a benefit recapture provision for businesses that have been granted credits but have failed to maintain full-time jobs for the required five years. In 2004, the Legislature authorized a credit transfer program so that grant recipients can sell their unused credits to other businesses.

"Small manufacturing firms can create new jobs and boost our regional economy," said Fisher.

The measure also is sponsored by Assemblyman Jeff Van Drew (D-Cape May/Atlantic/Cumberland), John Burzichelli (D-Gloucester), and Louis Manzo (D-Hudson).

The Assembly Appropriations Committee released the bill 13-0. It is scheduled for a January 7 Assembly floor vote.

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