The economic crisis facing the nation will take its toll on New Jersey’s employment, but the job creation and retention incentives scheduled for legislative committee action on November 13 could help ease the impact, NJBIA President Philip Kirschner said today.

"These measures are well thought out initiatives aimed at protecting private-sector jobs," Kirschner said.  "They will improve New Jersey’s business climate and help make New Jersey companies more competitive with those in other states."

Kirschner said several proposals scheduled for action November 13 would help ease the impact of the financial crisis.  They are:

• S-2213 (Van Drew)/A-3294 (Milam, Albano), which would expand the Business Retention and Relocation Assistance Grant (BRRAG) tax credit program to businesses in danger of leaving the State due to uncompetitive business costs or lease expirations;

• S-2114 (Kyrillos, Cunningham)/A-2997 (Vas, Coutinho), which would lift caps  on eligible employee salaries and number of new jobs created for businesses in urban areas participating in the Business Employment Incentive Program (BEIP);

• S-4 (Sarlo)/A-3377 (Schaer, Fisher), which would implement the Governor’s Main Street Business Assistance Program providing up to $50 million in loans and loan guarantees to help small and medium-sized businesses cope with the “credit crunch.”

• S-3 (Codey)/A-2722 (Vas, Greenwald), which would eliminate taxation on sales that have nothing to do with New Jersey, and get rid of the wasteful “regular-place-of-business” rule.

Currently, BRRAG tax credits are reserved for businesses that are relocating within the State.  Expanding it to businesses that are looking to move to other, lower cost states would give New Jersey a powerful tool to retain jobs here.  The BRRAG bill would also increase the tax credit to $2,500 from $1,500 per job retained.

"Once a company makes the financial commitment to leave New Jersey, they’re not coming back any time soon," Kirschner pointed out.  "In this economy, keeping businesses and jobs already in New Jersey must be the top priority."

Under BEIP, a company must pledge to create new jobs and maintain them for at least one year.  Grants are paid only after the job has been in place for a full year and the State has received the benefit of the employment.

"BEIP is one of the most effective job creation programs we have in New Jersey," Kirschner said.  "This would take the chains off of it so we can realize its full potential."

Under current law, eligible employee salaries are capped at approximately $160,000 and eligible job creation is limited to 120 percent of the contracted job creation goal.  These caps would be removed under the BEIP bill.  Also, it would permits the NJ Economic Development Authority to extend the 10-year limit on BEIP contracts for up to an additional five years in these urban areas, with lowered grant amounts and increased job retention mandates.