Oct. 30, 2008 - Tracking Legislation Important to the New Jersey Business Community
ECONOMIC DEVELOPMENT
New Main Street Program - A-3377 (Schaer/D-36; Fisher/D-3; Spencer/D-29; Conners/D-7; Watson Coleman/D-15; Pou/D-35): Assembly passed 61-17. Appropriates $50 million to the NJ Economic Development Authority to provide guarantees and loans to small and mid-sized businesses and not-for-profit corporations on an expedited basis to stimulate the economy.
ENERGY
Energy Incentives - A-843 (Chivukula/D-17; Karrow/D-23; Greenstein/D-14; Vainieri Huttle/D-37): Assembly passed 79-0. Requires the NJ Board of Public Utilities (BPU) to provide equal opportunity for prospective business applicants to apply for incentives for funding under programs that the BPU determines shall be funded by the societal benefits charge. The State Chamber supports incentives for businesses and residents as a way to encourage and promote alternative sources of energy.
Wind and Solar Energy in Industrial Zones - A-2550 (Lampitt/D-6; Chivukula/D-17; Wagner/D-38; Vainieri Huttle/D-37; Pou/D-35): Assembly passed 60-15. Permits the location of certain renewable energy facilities in areas zoned for industrial use. The bill defines a "renewable energy facility" as one that engages in the production of electric energy from solar technologies, photovoltaic technologies, or wind energy. Specifically, this legislation provides that a renewable energy facility on a parcel or parcels of land comprising 20 or more contiguous acres would be a permitted use within every industrial district of a municipality.
GOVERNMENT REFORM
Qualified Purchasing Agents - A-1645 (McKeon/D-27; Scalera/D-36; Prieto/D-32): Assembly passed 49-28. Redefines the role and qualifications of purchasing agents in Local Public Contracts Law. In the ever increasingly complex world of local public contracts and municipal finances, requiring government entities to have a qualified purchasing agent is prudent. The State Chamber believes adding this step will provide added protection by ensuring employer and resident tax dollars are being spent wisely.
Providing Funds For Shared Services - A-2853 (Roberts/D-5; Scalera/D-36; Conaway/D-7; Pou/D-35; Greenstein/D-14): Assembly passed 73-5 . Expands the ability of the state to assist local entities that want to participate in shared services projects by permitting the use of SHARE funding for start-up costs. These are financed through the issuance of debt or capital lease agreements. Currently, these costs are excluded from the program. The bill limits the amount of grants or loans for these start-up costs to no more than $200,000.
TAXATION
Repeal of Throwout Rule - A-2722 (Vas/D-19; Greenwald/D-6; Coutinho/D-29): Assembly passed 79-0. Repeals the "throwout" rule, a CBT provision which requires a New Jersey company (when calculating its corporate business tax liability) to include income earned in another state if that state chooses not to tax or is unable to tax that income. New Jersey is one of only two states that utilize this onerous provision. Additionally, this bill repeals the "regular place of business" provision, which requires a multi-state corporation to maintain an office with at least one employee outside the state in order to allocate its income on the same basis as corporations with multiple business locations. New Jersey is the only state with this requirement. Our business tax policies impact the way that our state is perceived in the national and global marketplace. Reforming our business tax climate is vital to retaining and attracting businesses. (This is an initiative recommended in the Chamber Corporate Business Tax Package)
Extension of NOL Carryover Period - A-3124 (Codey/D-27; Buono/D-18; Geenwald/D-6; McKeon/D-27; Vas/D-19; Pou/D-35): Assembly passed 79-0, sent to the Governor. Extends the net operating loss (NOL) carryover period from seven to 20 years. This legislation will bring New Jersey's tax policies more in line with others states and make us more competitive. Reforming our business tax climate is vital to retaining businesses, attracting capital investment and growing good jobs. (This is an initiative recommended in the Chamber Corporate Business Tax Package)
