Statement Regarding Signing of InvestNJ Business Grant Program Bill

Jim Leonard, Senior Vice President, Government Relations, NJ Chamber of Commerce

I would like to commend the members of the Legislature and Governor Corzine for working together to create and enact legislation to establish the InvestNJ Business Grant Program within the New Jersey Economic Development Authority.

At a time when unemployment is rising and job creation is desperately needed, this program will provide companies with the financial incentives they desperately need to expand their operations and create more employment opportunities for New Jersey citizens. Our hope is that this grant program will be especially attractive to those employers who are seriously considering adding positions but might be hesitant due to the current environment.

This is a win-win for all because the state tax revenues generated by the creation of each job will certainly pay for the cost of the grant in the long run. Also, there is a positive ripple effect on the rest of the economy when more people are working because they can use their income to purchase items in our stores.

Our leaders should be applauded for rising to the task during these challenging economic times by supporting today’s bill, as well as the Net Operating Loss extension bill a couple weeks ago. We are also pleased that members of the Legislature and the Governor are considering many other pro-economic growth initiatives designed to stimulate the economy and position us favorably once the current storm clouds pass.

The InvestNJ Business Grant Program provides businesses with grants of up to 7 percent of their capital investment costs of at least $5,000. These grants will provide businesses with the equivalent of the sales tax paid on their capital investment expenses. This program also provides companies with grants of $3,000 for each new job created and retained for one year. The program appropriates $70 million for capital investment grants and $50 million for job creation and retention grants, for a total investment of $120 million. This new incentive program will stimulate capital investment and job creation during this economic crisis.

Dec. 9, 2008