(TRENTON) – Legislation sponsored by Assembly members Louis D. Greenwald, Annette Quijano, Pamela R. Lampitt and Ruben J. Ramos, Jr., that would extend the eligibility of certain business and housing project tax credits available to New Jersey businesses was approved Thursday by the Assembly.
“Anything we can do to stimulate business growth in New Jersey to help put people back to work, we should be actively pursuing,” said Greenwald (D-Camden), the chairman of the Assembly Budget Committee. “These tax credits have proved effective in the past and extending them now will continue to induce businesses to invest in our economy.”
The legislation (A-3143) would extend the eligibility of businesses to invest in certain business or housing projects for tax credits under the state’s “Urban Transit Hub Tax Credit Act” (UTHTCA) and the “New Jersey Economic Stimulus Act of 2009.”
“Construction trades have some of the highest unemployment rates in our state,” said Quijano (D-Union). “These tax credits will help companies looking to build invest in business and residential construction, putting people back to work in the short term and creating jobs in the long term.”
“As one of the most densely populated states in the country, our task is two-fold: encourage business growth and investment and do so while preserving our open space,” said Lampitt (D-Camden). “Expanding these tax credits addresses will do just that: preserve New Jersey’s environment and open space while encouraging business development and growth.”
“The best economic stimulus we can provide New Jersey residents is a job,” said Ramos (D-Hudson). “Extending these tax credits will help provide much needed construction and trades jobs while also helping to improve and revitalize existing infrastructure in our cities.”
Under the UTHTCA, a business may receive a tax credit of up to 100 percent of its qualified capital investment in a business facility that is located in an urban transit hub and employs at least 250 people at the facility. Annually, for 10 years, the business may apply a credit equal to 10 percent of the amount of the investment against the corporation business tax, insurance premiums tax or gross income tax liability.
A tenant leasing space in a qualified facility would also be allowed credits under the bill, provided the tenant occupies space in the facility that proportionally represents at least $17.5 million of the capital investment in the facility, while employing at least 250 individuals and that the owner of the facility has made or acquired at least $50 million in capital investments in the facility.
Under a similar program enacted as part of the Stimulus Act of 2009, a developer may receive a tax credit of up to 20 percent of the capital investment in a qualified residential project located in an urban transit hub, provided the owner of the project has made or acquired at least $50 million in capital investments in the project.
Mixed use projects that consist of a qualified business facility and a qualified residential project – neither of which alone satisfies the $50 million investment requirement – also would be eligible, provided that the investment in each component of the development amounts to at least $17.5 million and that the total amount invested in the project in aggregate is at least $50 million.
The bill was approved 55-21.
