Many more employers would be eligible for tax credits under the Business Retention and Relocation Assistance Act of 2004 under NJBIA-backed legislation released March 5 by the Assembly Commerce and Economic Growth Committee. The bill, A-1696 (Fisher, Van Drew)/ S-80 (Kean T.), would extend program eligibility to businesses relocating and retaining at least 50 full-time jobs within New Jersey, instead of the current 250-jobs threshold.

Under the program, businesses are eligible for a one-time business tax credit of up to $1,500 per job retained in or moved to New Jersey. The credits are applied to the corporation business tax and insurance tax. Applicants must provide evidence that the business or its predecessor has been operating, in whole or in part, in the State for at least 10 years and had plans to relocate. Businesses must commit in writing to maintain 95 percent of the jobs for at least the first two years and 90 percent for the duration of the commitment.

NJBIA strongly supports the expansion of economic development incentives like this to a greater number of companies. The program has proven successful in keeping many businesses and the jobs they provide from moving out of State, but the current threshold is much too high, excluding 97 percent of the State’s employers. Companies with 50, 100 or 150 employees contribute a great deal to the economy and should be included in this program. The measure now heads to the Assembly Budget Committee. For more information, contact Art Maurice at ext. 247.

Businesses Located Only in UEZs Would Be Exempt from Sales Tax Reimbursement Law—The Assembly Commerce and Economic Growth Committee on March 5 released important NJBIA-backed legislation that would restore the full sales tax exemption for purchases by any eligible Urban Enterprise Zone (UEZ) business, provided it has no business locations outside of a zone. If A-3938 (Burzichelli, Fisher)/S-2491 (Sweeney) is enacted, these businesses would no longer have to pay the full sales tax and later file for a tax rebate with the NJ Division of Taxation. The bill also would restore the use tax exemption for out-of-State goods purchased by all UEZ-based businesses. Presently, these businesses must pay the tax and later file for a use tax rebate.

For those businesses that must continue to seek rebates, the bill would make the rebate process more business friendly by stipulating a one-year rebate claim filing period, reducing the period that the Division of Taxation has to audit a business’s rebate claim from four years to one year, and require the Division of Taxation to pay interest on unpaid rebates.

NJBIA supports the bill. Created in 1983 to encourage business growth in downtown urban areas, the UEZ program exempts eligible businesses from paying any sales tax on materials and equipment for their own use. The rebate program was instituted last year after the State became concerned that some businesses were getting tax-free purchases and using them at non-UEZ business locations, which is a violation of the law. Obviously, businesses that have only UEZ locations cannot violate this law and should be exempt from it. For more information, contact Art Maurice at ext. 247.

Senate Labor Committee Moves to Protect Unemployment Fund—The Senate Labor Committee released a proposal to amend the New Jersey State Constitution that would prohibit diverting to the general treasury taxes paid for unemployment insurance (UI) and temporary disability benefits (TDI). NJBIA supports SCR-58 (Sweeney); it is a long overdue reform. The resolution would constitutionally dedicate payroll taxes to be used exclusively for the purposes they are collected, such as employee unemployment benefits.

Since 1993, $4.7 billion in unemployment tax revenues has been diverted from the UI fund to help balance the State budget. These diversions have drained the balance from more than $3 billion in 2001 to around $600 million today. Governor Jon Corzine has made good on his pledge to not raid the UI fund, thereby avoiding a potential $350 million payroll tax hike. However, $50 million in TDI contributions were diverted from the current budget and another $75 million in TDI diversions has been proposed for next year’s budget. NJBIA has always maintained that both employer and employee contributions to these funds should be used exclusively for their stated purpose, not diverted to other spending. For more information, contact John Rogers at ext. 209.

NJBIA President to Give Economic Forecast March 16 at Middlesex Chamber Summit—Philip Kirschner, President of the New Jersey Business & Industry Association, will participate on the Economic forecast panel at the Central Jersey Business Conference on Friday, March 16th. This event will take place from 8:00 to 9:30 a.m. at the NJ Convention Center, Raritan Center, Edison. It will be followed by concurrent seminars, while over 200 exhibitors from around the region are available to discuss doing business with you.

The third annual Middlesex County Business Week 2007 is scheduled for March 12 -16. This weeklong event is designed to celebrate the achievements of business and community leaders. Event highlights include: the new Central Jersey Business Conference; “Go Global” Economic Summit; Annual Business Awards Breakfast; and over fifteen seminars countywide. Additional details on registration or sponsorship for this event and the entire week of seminars are available at 732-821-1700 or www.mcrcc.org.

Meet the Legislative Leaders: South Jersey, March 28—At this briefing breakfast, to be held at the Mansion on Main Street in Voorhees, you will hear from invited legislators Louis Greenwald, Assembly Budget Committee Chairman; Stephen Sweeney, Senate Labor Committee Chairman; Martha Bark, Senate Republican Conference Leader; and Francis Bodine, Assembly Republican Deputy Leader.

The event will begin at 7:30 a.m. with a full breakfast and a brief overview of NJBIA's legislative agenda. Our panel of legislative leaders will offer their thoughts and answer your questions about health insurance costs, state and local taxes, environmental fees and permits, energy costs and other issues impacting your business. Legislators from throughout the region will also be invited to attend, making this a tremendous networking event. The cost is $69 per person for NJBIA members, $105 for nonmembers. For more information, contact Katie Wittkamp at 609-393-7707, ext. 239, or register online. To become a sponsor contact Sherry Esteves at ext. 219.

Meet the Governor's Chief Advisors, April 11—NJBIA will continue its Meet the Decision Makers breakfast series on Wednesday, April 11 at the Forsgate Country Club in Monroe Township (just off Exit 8A of the NJ Turnpike) with top representatives of the Governor's office including Chief of Staff Thomas Shea, Chief Counsel Ken Zimmerman and Policy Counsel Heather Howard. Register for this event now.

You can also register for our Tuesday, May 1, breakfast with State Treasurer Bradley Abelow, which will take place at the Holiday Inn East Windsor (just off Exit 8 of the NJ Turnpike).

Each breakfast will be held from 7:30 a.m. to 10:00 a.m. The cost to attend each breakfast is $69 per person for NJBIA members and $105 for nonmembers. For more information, or to become a sponsor, contact Sherry Esteves at 609-393-7707, ext. 219.

New Good Neighbor Awards Advertising and Sponsorship Opportunities—The New Good Neighbor Awards annually recognize the best and most exciting commercial and industrial development projects in the State of New Jersey.

Capitalize on the high visibility of this prestigious award by taking advantage of the Advertising and Sponsorship opportunities we are offering for 2007.

• Co-sponsor the June 1, 2007 luncheon honoring the winners.

• Advertise in the June 2007 issue of New Jersey Business Magazine.

• Maximize your visibility and save money by signing up for both.

For more information on sponsorship contact Sherry Esteves at 609-393-7707, ext. 219. For more information on advertising opportunities, contact Vincent Schweikert at 973-882-5004, ext. 110.

Raise Your Visibility. Become an Event Sponsor—Golf & Tennis Day. NJBIA's Meet the Decision Makers series. First-rate events like these offer your company an excellent opportunity to reach their target audiences and heighten their visibility as an event sponsor. Learn more about becoming an NJBIA sponsor online or contact Sherry Esteves at 609-393-7707, ext. 219.