GOVERNOR'S ECONOMIC STIMULUS PACKAGE
October 17, 2008
Many Chamber Recommendations in Governor's Economic Plan Governor Jon Corzine presented his economic stimulus package to members of the state legislature yesterday, which contained a combination of short- and long-term solutions to the current crisis. His proposal includes corporate business tax reforms, business incentive and regulatory changes, investment in green jobs, expedited infrastructure spending, emergency family assistance and programs to address the credit crunch.
The chamber appreciates that Governor Corzine included many elements of the Chamber's Corporate Business Tax Reform Package in the proposal, as well as other recommendations to improve the state's regulatory climate and business incentive programs. The Chamber's Platform for Progress Coalition has also been calling for these measures to make the state more competitive.
Over the course of the next few weeks, we will continue to interact with legislators and members of the Administration to assure the stimulus program provides the optimal benefit to the residents and employers of New Jersey. If your organization has any comment on the proposal please contact me at (609) 989-7888.
Below are key provisions of the Governor's plan that will impact the business community:
Corporate Business Tax Reform
Endorse legislation that expands the net operating loss provisions from 7 years to 20 years (A-3124/S-2130). (This is an initiative recommended in the Chamber Corporate Business Tax Package).
Endorse legislation that repeals the "throw out" rule effective July 1, 2010. (This is an initiative recommended in the Chamber Corporate Business Tax Package).
Repeal the Regular Place of Business requirement effective July 1, 2010. (This is an initiative recommended in the Chamber Corporate Business Tax Package).
Endorse efforts to provide a single sales factor formula effective July 1, 2010. (This is an initiative recommended in the Chamber Corporate Business Tax Package).
Move to unitary combined reporting effective July 1, 2010.
Business Incentive and Regulatory Changes
Create a new job creation incentive program where businesses with between 5 and 500 employees would receive $3,000 for each New Jersey job created. This program would have a 24-month sunset.
Eliminate sales and use tax paid on all capital construction projects in New Jersey. This would include not only infrastructure projects but items purchased in connection with an expansion or new building construction project. This program would sunset in 24 months.
Increase the reimbursement amount for UEZ purchases and allow mayors in UEZs greater latitude to spend the collected funds on job creation activities.
Provide $200 million to $300 million in additional funding for the unemployment insurance trust fund to prevent an increase in payroll taxes.
Endorse efforts to improve site remediation efforts using a licensed site professional approach similar to the approach advocated in legislation by Senator Smith. (This is an initiative recommended by the Platform for Progress Environment Coalition).
Endorse recommendations by the NJ Economic Development Authority (NJEDA) Permit Efficiency Review Task Force to improve efficiencies in order to streamline permitting.
Growing our Green Economy
Create 20,000 jobs between now and 2020 through state investment in New Jersey energy infrastructure as a result of the Energy Master Plan. These jobs will consist of operations and maintenance jobs, and construction jobs directly related to the state's energy infrastructure.
Increase the timeline for the private creation of electricity generation through wind and solar activities.
Work with the county colleges to make sure we have a skilled workforce ready for employment in our green economy. Work with the NJ Board of Public Utilities (BPU) to provide additional incentives for investing in efficient energy activities.The NJEDA and BPU will implement theClean Energy Manufacturing Fund designed to assist the advancement of renewable energy and energy-efficiency technologies.
The Edison Renewable Energy Technologies Fund will provide funding to New Jersey technology companies for proof-of-concept research and development and ancillary activities necessary to commercialize identified renewable energy technologies and innovative technologies that significantly increase energy efficiency.
