Tracking Legislation and Other Items Important to the Business Community:
Extends Permits for Superstorm Sandy-impacted Counties
A-3617 (Green/D-22; Rible/R-30; Mukherji/D-33; Houghtaling/D-11; Mazzeo/D-2; Sarlo/D-36; Kyrillos/R-13)
Senate passed 39-0, signed by Governor on June 30, 2016. Extends expiration date of certain permits for one year in Superstorm Sandy-impacted counties. Gaining a permit extension is difficult and costly, resulting in once-approved permits to expire or lapse. This causes lenders to re-appraise and subsequently lower real estate valuations, thereby requiring the reclassification of numerous loans, which affect the developer's ability to apply for future loans. Under this bill, nine counties in New Jersey would have their permits extended to December 31, 2016.
Revises BEIP Tax Credit Schedule
Senate passed 28-9, signed by Governor on June 30, 2016. Businesses that were awarded grants under the Business Employment Incentive Program (BEIP) can opt to have their grants converted into tax credits. This bill revises the priority schedule to issue those converted tax credits to the oldest, outstanding grant awards that have been accrued but not paid to businesses from 2008 to 2013 over a five year period. In the first year, businesses will receive a tax credit that totals 5 percent of the amount of the grant. In the second year, the tax credit will be 20 percent of the grant, and the subsequent three years would be 25 percent each, totaling a hundred percent of the grant accrued but not paid over 5 years.
Senate passed, 39-0. Establishes a "Small Business Bonding Readiness Assistance Program" to be run by the New Jersey Economic Development Authority to assist certain small businesses in meeting state or federal contract surety bond requirements. The program will receive $250,000 annually from the enterprise zone assistance fund. This program is intended to give small businesses the knowledge and capacity to bid on public works projects or perform government contracts.
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