Bill > S2256

Introduced Session

This bill establishes in the New Jersey Economic Development Authority (EDA) the "Main Street Assistance Program" (program) for providing financial and technical assistance to businesses located in Main Street areas within small municipalities. The bill's purpose is to encourage business development in small municipalities having substantially developed commercial areas. The bill authorizes the governing body of a "small municipality," which is a municipality having a population under 20,000 that is over 75 percent developed according to 2012 data published by the Department of Environmental Protection, to designate a "Main Street area" in the municipality. To designate a "Main Street area," the governing body must provide a statement of intent to the EDA setting forth the municipality's findings concerning the economic conditions existing in the area and the municipality's intentions for addressing them. For a business to be eligible to receive financial and technical assistance from the EDA under the program, at least 15 percent of the full-time employees of the business must reside within the small municipality. Under the bill, the EDA must work cooperatively with other State agencies to explore and implement opportunities to direct resources and create enhanced incentives for area businesses participating in the program. The bill provides corporation business tax credits and gross income tax credits to businesses located in a Main Street area that meet the criteria determined by the EDA. The credits are equal to 15 percent of the cost of employee compensation expenses related to meeting the definition of an area business under the bill. To provide funding for the program, the EDA is to create the "Main Street Assistance Fund" for providing loans, loan guarantees, and technical assistance to area businesses located within a small municipality. The terms of a loan or loan guarantee and the amount of technical assistance is at the discretion of the authority based on the moneys made available by the authority for the purposes of the fund. The EDA may make moneys available for the purpose of the fund from moneys received by the EDA from any public or private sources, moneys repaid to the fund by persons awarded loans from the fund, and any return on investment of moneys deposited in the fund. In addition, the EDA may provide technical assistance grants to small municipalities to improve the economy, appearance, and image of central business districts. The bill requires the EDA to issue an annual report to the Governor and Legislature on the program and to adopt rules and regulations to implement the program. This bill would take effect immediately, but area businesses receiving tax credits would apply the credits to privilege periods and taxable years beginning on or after January 1 next following the date of enactment.

AI Summary

Committee Categories

Nilsa Cruz-Perez (D)*,  Troy Singleton (D)*,  Dawn Addiego (D),  Vin Gopal (D),  Steven Oroho (R),  Teresa Ruiz (D), 

Received in the Assembly, Referred to Assembly Commerce and Economic Development Committee (on 05/13/2019)