The bill amends existing legislation to provide greater flexibility for businesses participating in State economic development programs, particularly in light of the COVID-19 pandemic. It allows businesses to waive the requirement that full-time employees spend at least 60% of their time at qualified business facilities, permitting a reduced requirement of 10% from July 1, 2022, to March 31, 2024, and 40% starting April 1, 2024. In exchange for these waivers, businesses must contribute a percentage of their tax credits—5% during the initial period and 20% thereafter—to support local initiatives, such as the municipal affordable housing trust fund. The bill also introduces provisions for tax credit holders to carry forward their credits for up to 20 successive tax periods and to transfer these credits under certain conditions.

Additionally, the bill outlines specific eligibility criteria for businesses seeking tax credits, including minimum capital investment thresholds and employment requirements. It clarifies that businesses cannot receive credits if they are already benefiting from other incentive programs or if their capital investment is linked to previously awarded grants. The legislation includes provisions for the forfeiture of credits if employment levels drop below specified thresholds or if the qualified business facility is sold or subleased during the eligibility period. Overall, the bill aims to streamline access to tax credits while ensuring accountability and compliance with employment and investment commitments, thereby supporting local economic development initiatives.

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