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  • NJ A546
  • Lifts moratorium on new Business Employment Incentive Program grant awards and establishes "New Jersey Business Employment Incentive Program Task Force."
Introduced
(1/27/2016)
In Committee
(1/27/2016)
Crossed OverPassedSignedDead/Failed/Vetoed
2016-2017 Regular Session
This bill eliminates the current moratorium on new grant awards provided under the Business Employment Incentive Program (BEIP) and further establishes a "New Jersey Business Employment Incentive Program Task Force" to study, evaluate, and develop recommendations relating to the effectiveness of BEIP grants in creating new employment opportunities and fostering capital investment in this State. Specifically, this bill deletes the existing statutory prohibition against the acceptance of new BEIP applications by the New Jersey Economic Development Authority (NJEDA) thereby authorizing the NJEDA to continue the implementation of the program. Under the "New Jersey Economic Opportunity Act of 2013," P.L. 2013, c.161 (C.52:27D-489p et al.), a moratorium was imposed that prohibits the NJEDA from accepting any new applications for assistance under the program on or after the effective date of that act (September 18, 2013). This bill further establishes a five-member task force to: a. assess the effectiveness of BEIP in creating new jobs and capital investment in the State; b. study the effectiveness of BEIP relative to other State economic development incentive programs providing grants or other tax incentives for the purpose of increasing employment and capital investment in this State; c. evaluate the impact on business investment and the general business climate in this State due to uncertain State funding for previously awarded BEIP grants; and d. consider the needs of employers seeking to increase employment and capital investment in this State. The five member task force is to be comprised of one appointment each by: the Governor, the President of the Senate, the Speaker of the General Assembly, the Minority Leader of the Senate, and the Minority Leader of the General Assembly. The task force is required to submit a final report of findings and recommendations to the Governor and Legislature within six months after its initial meeting. N.J.S.A.34:1B-124 et seq. provided the statutory authority for BEIP under which the NJEDA provided grants to businesses that created jobs in New Jersey. BEIP grants could be awarded for up to ten years and could equal between 10 percent and 80 percent of the total amount of State income taxes withheld by the grant receiving business from wages of new employees subject to the grant agreement. To qualify for a grant, an applicant had to certify that receipt of the grant was a "material factor" in the business' decision to invest in New Jersey. As of December 31, 2013, the NJEDA had executed 499 BEIP grant agreements with a cumulative grant amount of $1.59 billion since the program's inception in 1996. In all, executed BEIP grants covered 105,800 new jobs and capital investments totaling $12.6 billion.
Commerce and Economic Development
Introduced, Referred to Assembly Commerce and Economic Development Committee  (on 1/27/2016)
 
 

Date Chamber Action Description
1/27/2016 A Introduced, Referred to Assembly Commerce and Economic Development Committee
Date Motion Yea Nay Other
None specified