CCSNJ Supports Pro-Business Bills in Senate Budget & Appropriations Committee
Friday, November 14, 2008

MEMORANDUM

TO: Members of the Senate Budget & Appropriations Committee

FROM: Christina M. Genovese, Manager, Government Relations

RE: A-2722 (Vas/Greenwald/Coutinho)

A-3111 (Greenwald/Pou/Chivukula) / S-1418 (Sarlo)

A-3377 (Schaer/Fisher/Spencer/Conners) / S-4 (Sarlo)

S-5 (Stack)

S-265 (Kyrillos/Cunningham)

S-1874 (Oroho/Sweeney)

S-2213 (Van Drew)

DATE: November 13, 2008

The Chamber of Commerce Southern New Jersey supports A-2722 (Vas/Greenwald/Coutinho), A-3111 (Greenwald/Pou/Chivukula) / S-1418 (Sarlo), A-3377 (Schaer/Fisher/Spencer/Conners) / S-4 (Sarlo), S-5 (Stack), S-265 (Kyrillos/Cunningham), S-1874 (Oroho/Sweeney) and S-2213 (Van Drew), which are business friendly measures that will help encourage economic growth in New Jersey by changing the way certain companies are taxed and enhancing certain pro-business programs.

The Chamber supports A-2722 (Vas/Greenwald/Coutinho) and S-1874 (Oroho/Sweeney), which would eliminate the throwout of receipts in allocation of entire net income under the corporation business tax. A-2722 (Vas/Greenwald/Coutinho) would also eliminate the "regular place of business" requirement to allocate less than 100% of income to New Jersey.

The elimination of the “throw out rule” and the “regular place of business” requirement are important components of an overall package of bills that also includes A-3111 (Greenwald/Pou/Chivukula) / S-1418 (Sarlo), which revises the sales and use tax to conform with Streamlined Sales and Use Tax Agreement. The passage of these bills will ease the business tax burden in our state, making it more attractive for expansion and location.

The Chamber also supports Governor Corzine’s Main Street Assistance Program, which is outlined in A-3377 (Schaer/Fisher/Spencer/Conners) / S-4 (Sarlo). This program would stimulate the economy and spur community investment during our current economic crisis by providing loans and guarantees to small and mid-sized businesses and non-profits for a period of two years.

The Chamber also supports S-5 (Stack), which broadens the small qualified business exception under UEZ sales tax rebate program. Although the Chamber believes that all businesses in UEZ zones should not be required to pay sales tax on purchases up front, we believe this bill is a step in the right direction towards widening the current UEZ qualifications.

S-2213 (Van Drew) would provide certain enhancements to Business Retention and Relocation Assistance Grant Program (BRRAG) by providing tax credits to businesses that can prove they are a flight risk from the State and by increasing the incentive amount from $1,500 per full time job to $4,000 per full time job if a business decides to move from outside a designated urban center in New Jersey to one or more locations within a designated urban center.

Lastly, the Chamber supports S-265 (Kyrillos/Cunningham), which allows business to take their Business Employment Incentive Program (BEIP) incentive as a tax credit under the corporation business tax. Currently, BEIP grants are only provided as direct payments to businesses that meet their job creation and retention commitments. By altering the program, it would allow businesses to use the grant money against their tax obligation.

The passage of these nine bills sends a strong signal to the business community that our policymakers recognize the position New Jersey is in terms of competitiveness, and are serious about positioning our state to rebound more quickly when the economy starts to turn around.

For these reasons, we urge you to support A-2722 (Vas/Greenwald/Coutinho), A-3111 (Greenwald/Pou/Chivukula) / S-1418 (Sarlo), A-3377 (Schaer/Fisher/Spencer/Conners) / S-4 (Sarlo), S-5 (Stack), S-265 (Kyrillos/Cunningham), S-1874 (Oroho/Sweeney) and S-2213 (Van Drew).