Daily Tax Report: State provides authoritative coverage of state and local tax developments across the 50 U.S. states and the District of Columbia, tracking legislative and regulatory updates,...
New Jersey lawmakers are putting on a full court press to lure the HQ2 project by Amazon.com Inc. by promising some $5 billion in tax incentives.
Gov. Chris Christie (R) and the bipartisan leadership of the state Legislature have pledged their support for a package of tax incentives that would significantly expand the state’s current GROW NJ economic development program.
In addition, both the Democratic candidate for governor, Phillip D. Murphy, and the Republican candidate, Lt. Gov. Kim Guadagno, have pledged their support for a package of incentives to attract the project.
Christie, who can’t run for another term because of term limits, kicked off the public sales pitch with a Sept. 22 letter to Murphy and Guadagno asking for their support.
The four Democratic and Republican leaders of the Senate and Assembly followed with a Sept. 27 letter pledging to pass legislation that would include $5 billion in tax incentives. The key incentive is $10,000 for each new job, up from the current $5,000-per-job rate, which would total $5 billion if Amazon creates the 50,000 new jobs it has promised.
The bill also would loosen current restrictions and caps, including limits on locations and on multi-phase projects. It would include a provision allowing the company to carry forward tax credits for up to 50 years.
Michele Siekerka, president and chief executive officer of the New Jersey Business and Industry Association, said “we’re supportive of the Grow NJ program being more flexible and having additional incentives to address the needs of companies, big and small, looking to New Jersey for job creation.”
“We truly believe New Jersey would be an attractive place for Amazon to place HQ2, based on our talent pool and location,” she said in a statement emailed to Bloomberg BNA Sept. 28. “So looking at the opportunity to make us more competitive with these tax incentives is a good thing.”
The incentives package is opposed by New Jersey Policy Perspective, a liberal-leaning think tank concerned with economic justice issues.
Gordon MacInnes, president of the organization, said New Jersey would be a good choice for Amazon because of the state’s “bustling cities,” infrastructure, schools, highly educated labor force, and quality of life.
“So-called incentives are a stated factor in Amazon’s decision-making, but they are just one of many,” he said in a Sept. 27 statement. “If state economic-development officials focus narrowly on tax breaks, they will merely be repeating, and making worse, the mistakes New Jersey’s political leaders have been making over and over since the recession hit.”
“Merely blowing the lid off already out-of-control corporate tax break policies won’t work—and is dangerous to New Jersey’s future to boot,” he said.
Several states and cities are raising their hands in the Amazon HQ2 race, including: Delaware; Rhode Island; Austin, Texas; Chicago (see related story, this issue); Detroit; Hartford, Conn.; Memphis, Tennessee; Philadelphia; St. Louis; and Tulsa, Okla.
To contact the reporter on this story: Gerald B. Silverman in Albany, N.Y. at GSilverman@bna.com
To contact the editor responsible for this story: Jennifer McLoughlin at firstname.lastname@example.org
Copyright © 2017 Tax Management Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)