Bill > A4426

Introduced Session

This bill requires the New Jersey Economic Development Authority (EDA) to establish and administer a grant program to provide financial assistance to reimburse retail business establishments for the cost of any increased business expenses incurred due to a public highway project. The bill also provides for a 50 percent exemption to the sales and use tax in impacted municipalities. Definitions The bill defines "business expenses" as the costs incurred by a retail business establishment that are necessary for the day-to-day operation of the retail business establishment. Business expenses may include, during a relief period, lost revenues, including, but not limited to, profit loss due to the public highway project. The bill defines "retail business establishment" as a small business that maintains a fixed permanent location where goods are exhibited or services are offered, on-site or off-site, on an appointment or walk-in basis. A retail business establishment's offered services may include, but are not limited to, charter boat services. The bill defines "impacted construction zone" as any area immediately surrounding a public highway project, within which area the occurrence of the public highway project impedes or blocks the normal and reasonable flow of traffic or otherwise restricts access to business establishments located within the area. The bill defines "relief period" to mean the period of time between the date on which a public highway project commences and the date on which the project concludes. "Public highway project" means any infrastructure project that involves the construction, improvement, or maintenance of a State, county, or municipal highway, road, bridge or street, including, but not limited to, the repair or reconstruction of any highway, road, bridge, or street that has suffered serious damage as a result of a natural disaster or catastrophic failure from any external cause. The bill defines "impacted municipality" as any municipality in which an ongoing public highway project is located. Grant Program Under the bill, the grant program is intended to reimburse a retail business establishment operating within an impacted construction zone for any increase in business expenses incurred during a relief period. The bill requires an application for a grant to include: (1) evidence that an applicant is a retail business establishment that is qualified under the grant program; (2) documentation of the business expenses regularly incurred by the applicant prior to the relief period; (3) documentation of the increased business expenses incurred by the applicant during the relief period as a direct result of the public highway project; and (4) any other information or documentation the EDA deems necessary. An applicant's documentation of business expenses prior to and during the relief period, respectively, is required to demonstrate the business expenses incurred by the applicant for an equal number of business days. The bill directs the EDA to review and approve applications for the grant program on a rolling basis, subject to the availability of funds for the program. Upon the approval of an application, the grant issued to an approved applicant is required to be in an amount equal to the difference between: (1) the increased business expenses incurred by the applicant during the relief period as a direct result of the public highway project; and (2) the business expenses regularly incurred by the applicant prior to the relief period. These amounts are to represent the business expenses for an equal number of days during which an applicant incurred business expenses. To assist the authority in the review of applications under the program, the bill requires the Commissioner of Transportation to notify the EDA of the commencement or completion of public highway projects. The Commissioner of Transportation is also required to notify the EDA of each ongoing public highway project within the State within 30 days after the bill's effective date. The bill appropriates $1 million from the General Fund to the EDA to support the costs of administering the grant program. Sales and Use Tax Reduction Under the bill, a seller is entitled to an exemption to the extent of 50 percent of the tax imposed under the Sales and Use Tax Act, upon approval by the Director of the Division of Taxation (director), if the seller operates a retail business establishment within an impacted municipality during a relief period. To be entitled to the exemption, a seller is required to submit an application to the director to verify that the retail business establishment operates within an impacted municipality. Upon the commencement or completion of a public highway project, the bill requires the Commissioner of Transportation (commissioner) to provide written notice to the director attesting to the commencement or completion of the project, as applicable. Within 30 days following the bill's effective date, the commissioner is required to provide written notice to the director attesting to each ongoing public highway project within the State. Within 30 days of receiving the written notice from the commissioner concerning the completion of a public highway project, the bill requires the director to provide written notice to each seller for which such an exemption has been authorized indicating that the seller's exemption is terminated, as of the date of receipt of the written notice.

AI Summary

Committee Categories

Sean Kean (R)*, 

Introduced, Referred to Assembly Commerce and Economic Development Committee (on 02/19/2026)

Official Document