Bill > A238

Introduced Session

This bill reduces by 50 percent, the number of manufacturing jobs required to be eligible for New Jersey Economic Development Authority (EDA) financing and incentive programs. The sales and use tax exemption program permits certain companies to obtain a sales tax exemption certificate for the purchase of items to construct or rehabilitate a new business location. Under the bill, a life science or manufacturing company relocating 125 full-time manufacturing jobs or 250 full-time non-manufacturing jobs may be eligible for the exemption. The program currently requires the relocation of 250 full-time employees regardless of whether the job is a manufacturing job or not. The GROW NJ program provides tax credits to eligible businesses based upon defined job creation and capital investment criteria. Under the bill, the number of full-time jobs that must be created or retained to qualify for the GROW program is reduced by 50 percent for manufacturing jobs, but remains the same for non-manufacturing jobs. The definition of a mega project is altered so that the number of jobs that must be created to qualify as a mega project is reduced by 50 percent for manufacturing jobs, but remains the same for non-manufacturing jobs. The alternate benefit calculation for a GROW project in a Garden State Growth Zone which qualifies for the "Municipal Rehabilitation and Economic Recovery Act," divides the total capital investment by the number of jobs to be created, with the number of full-time manufacturing jobs used in this calculation being reduced by 50 percent for each investment and job creation category used to make the calculation. The Urban Enterprise Zones (UEZ) manufacturers energy sales tax exemption allows UEZ certified manufacturers an exemption from the sales and use tax on electricity and natural gas and its transmission consumed at the UEZ certified location. Under the bill, the employment requirement for a business is reduced from 250 full-time employees, with at least 50 percent being involved in the manufacturing process to 188 full-time employees with at least 33 percent being involved in the manufacturing process.

Committee Categories

Nancy Muñoz (R)*,  Brian Bergen (R), 

Introduced, Referred to Assembly Commerce and Economic Development Committee (on 01/11/2022)

Official Document