This bill amends existing laws governing economic development incentives for businesses in New Jersey, particularly in light of the COVID-19 pandemic. It allows businesses participating in state economic development programs to waive the requirement that full-time employees spend at least 60% of their time at qualified business facilities. Specifically, from July 1, 2022, to March 31, 2024, businesses can have employees spend a minimum of 10% of their time at the facility, with a 5% contribution of their tax credit to support local economic activities. Starting April 1, 2024, this requirement increases to 40% of employee time at the facility, with a corresponding 20% contribution of the tax credit to the municipal affordable housing trust fund.

Additionally, the bill introduces provisions for tax credit holders to carry forward their credits for up to 20 successive tax periods and allows for the transfer of these credits to other entities. It emphasizes the need for businesses to demonstrate a net positive benefit to both the state and the municipality when applying for tax credits, while also establishing penalties for failing to maintain required employment levels. The legislation aims to provide businesses with greater flexibility and support during economic recovery while ensuring accountability in job creation and investment commitments.

Statutes affected:
Introduced: 34:1B-120, 34:1B-129, 34:1B-209, 34:1B-247