Calling it "a booster shot for our economy," President George Bush on February 13 signed a $168 billion economic stimulus bill that will provide most individual taxpayers with rebates, increase deductions for certain business investments, and ease pressure on mortgage holders. The measure aims to pump money into the economy quickly in hopes of staving off a recession or at least easing its impact.

The law includes tax incentives for businesses to invest in their operations. It provides a 50 percent bonus depreciation allowance for property, such as equipment and computer software, purchased in 2008. The measure also increases the expense deduction for small businesses to $250,000, from the current $128,000. This applies to businesses purchasing less than $800,000 of equipment per year. The former purchase cap was $510,000.

The law also raises the statutory ceiling on the dollar amount of loans that can be purchased by the Federal National Mortgage Association (Fannie Mae) or the Federal Home Loan Mortgage Corporation (Freddie Mac), allowing them to purchase more mortgages. It also establishes a temporary increase in the loan limit for FHA-insured mortgages in specified high-cost areas for which a borrower receives credit approval by December 31, 2008.

But the centerpiece of the stimulus package is direct rebates to individual taxpayers intended to promote consumer spending. Most taxpayers will receive checks of up to $600 for individuals and $1,200 for couples, plus an additional $300 per child. People earning at least $3,000 and those who owe little or no taxes would get $300 for singles, and $600 for couples. Those making more than $75,000 and couples with income exceeding $150,000 are to get smaller rebates - $50 less per $1,000 they make over those thresholds - or no rebates at all.

For more information, contact Art Maurice at ext. 247.

New Public Access Rules Present the Same Problems for Business, NJBIA tells DEP

New rules detailing the obligations of property owners to provide public access to tidal waterways present the same problems for business owners as the existing rule, NJBIA stated in recent comments to the NJ Department of Environmental Protection (DEP).

The department purportedly proposed the new rules to address objections and concerns raised more than a year ago. However, it proposes only minor changes that would be of little help to the hundreds of businesses that have operations along the State’s tidal waterways.

Under the rules, adopted by DEP on December 17, businesses are required to provide on-site waterway access and recreational facilities to the public or, where public access is not feasible, pay to create access and provide facilities elsewhere. NJBIA and other groups strongly opposed the rule more than a year ago, arguing that it should focus on providing public access to bathing beaches, not factories or utilities located along rivers and back bays. The new rules were supposed to address these concerns, but as written would only revise some the requirements for marinas and alter some of the obligations imposed on municipalities and the NJ Department of Transportation. Businesses would still be required to provide public access or pay whatever DEP requires. Clearly, security concerns prohibit large industrial facilities, power plants, or ports from providing access, making this rule simply a money grab.

NJBIA also objected to the rule-making procedure undertaken by DEP. The department adopted the existing rule without substantively addressing many of the numerous concerns that were raised during the public comment period. It claimed, however, the new rule proposal would fix the problems with the rule it just adopted. NJBIA contends that the reason for having a comment period is to identify potential problems with proposed rules and fix them before the rule is adopted. For more information, contact David Brogan at ext. 236.

Pilot Program Teaching Students about Finances Clears Education Committee

NJBIA-backed legislation that would establish a pilot program for teaching elementary school students about personal finances was released February 14 by the Senate Education Committee.

The measure, S-541 (Girgenti, Turner), would establish the "Youth Investor Club Pilot Program" and introduce students to basic financial concepts like savings, debt, investments, mortgages and taxes. Students would receive assistance in opening their own personal savings accounts, go on field trips to financial institutions and hear from guest speakers on financial topics. The program would be instituted in six school districts, two each in the southern, central and northern regions of the State.

Employers have long complained about the lack of basic business skills in entry-level workers. A recent survey of NJBIA members revealed that only 21 percent of employers believe their entry-level workers have satisfactory budgeting skills and only 28 percent have adequate mathematics skills. Understanding personal finances is the first step to understanding important business concepts like budgets, overhead and pricing. It would also provide a practical understanding of how concepts learned in school can be applied in everyday situations. For more information, contact Chris Emigholz at ext. 201.

Governor Invites Public to Suggest Spending Cuts Via Web Site

Governor Jon Corzine on February 13 unveiled a new tool on his Web site allowing citizens to suggest State budget spending cuts, giving citizens an opportunity to voice their opinion in advance of the Governor’s February 26 budget address. Upon responding, you will be asked to provide your name and e-mail address, as well as your town and county of residence.