Trenton, NJ - Both the Senate and Assembly appropriations committees released legislation that would allow outstanding Business Employment Incentive Program (BEIP) grant commitments to be converted into refundable tax credits. Under the program, businesses received grants in return for creating a specific number of jobs in New Jersey. “Good jobs and business investments are essential to maintaining a strong economy,” said Andrew Musick, NJBIA director of Taxation and Economic Development. “New Jersey’s incentive programs are essential to attracting and retaining businesses so that we can benefit from those jobs and investments in New Jersey.”
Legislation to allow outstanding Business Employment Incentive Program (BEIP) grants to be taken as a refundable tax credit is scheduled for votes in both the Senate and Assembly appropriations committees on Thursday. The idea was first proposed by Governor Chris Christie in February.
“BEIP was a very straightforward program: businesses agreed to create a specific number of jobs, and in return they received grants from the state,” Musick said. “The grants were only received after the businesses’ obligations were met.
Musick pointed out that as of November 2015, the NJ Economic Development Authority has executed 465 BEIP grants that spurred creation of 110,000 jobs and leveraged more than $12 billion in capital investment.
“In difficult budget times these grants were not funded,” Musick said. “Changing the program to a tax credit will remove the BEIP appropriations from the budget process and provide businesses with more certainty, predictability and flexibility moving forward.”
What It Means:
By allowing businesses to receive tax credits instead of grants, the bill would remove funding for the program from the annual legislative budget process, ensuring that the state honors its agreements with BEIP participants. In difficult budget times, BEIP grants were not funded. Changing the program to a tax credit will provide businesses with more certainty and predictability.
Where We Stand:
NJBIA supports the bill. New Jersey’s incentive programs are essential to attracting and retaining businesses so the state can benefit from those jobs and investments. As of November, the NJ Economic Development Authority has executed 465 BEIP grants that spurred creation of 110,000 jobs and leveraged more than $12 billion in capital investment.
What’s Next:
The bill awaits action in the full Senate and full Assembly.
For the video, click here: https://www.youtube.com/watch?v=tVK081BWmbs
“BEIP was a very straightforward program: businesses agreed to create a specific number of jobs, and in return they received grants from the state,” Musick said. “The grants were only received after the businesses’ obligations were met.
Musick pointed out that as of November 2015, the NJ Economic Development Authority has executed 465 BEIP grants that spurred creation of 110,000 jobs and leveraged more than $12 billion in capital investment.
“In difficult budget times these grants were not funded,” Musick said. “Changing the program to a tax credit will remove the BEIP appropriations from the budget process and provide businesses with more certainty, predictability and flexibility moving forward.”
What It Means:
By allowing businesses to receive tax credits instead of grants, the bill would remove funding for the program from the annual legislative budget process, ensuring that the state honors its agreements with BEIP participants. In difficult budget times, BEIP grants were not funded. Changing the program to a tax credit will provide businesses with more certainty and predictability.
Where We Stand:
NJBIA supports the bill. New Jersey’s incentive programs are essential to attracting and retaining businesses so the state can benefit from those jobs and investments. As of November, the NJ Economic Development Authority has executed 465 BEIP grants that spurred creation of 110,000 jobs and leveraged more than $12 billion in capital investment.
What’s Next:
The bill awaits action in the full Senate and full Assembly.
For the video, click here: https://www.youtube.com/watch?v=tVK081BWmbs
