I applaud the governor for the new tax incentive programs he proposed yesterday.
On the heels of his comments in the State of the State address, it was important for him to reaffirm the need for tax incentives in New Jersey’s overall economic plan.
In reviewing the programs that the governor outlined, we ask that the incentives in the newly announced NJ Forward program be made eligible to more small- and mid-size businesses.
Our understanding is that hundreds of thousands of New Jersey businesses, representing many sectors and all regions of the state, would not be eligible for tax incentives under the proposed program, even though these businesses represent the backbone of our economy.
If we want to make our state more business friendly and attractive, we should incent growth as broadly as possible. Expanding eligibility to more businesses could carry with it more stringent eligibility criteria, but small- and mid-size businesses deserve access to incentives to encourage their growth.
Also, we suggest that the $200 million cap on the NJ Forward plan be soft, rather than mandated.
This would allow for review of the program once the cap is hit, and enable the state to stop the incentives at that point, or raise the cap if it is determined the program is generating solid net benefits to the state.
To be competitive in the business arena, incentives are mandatory. The more comprehensive the incentives, the more attractive New Jersey will be as a business-friendly state.
