Gov. Phil Murphy signed an amended bill that would provide tax incentives for businesses within a mile of the Atlantic City International Airport by creating a Garden State Growth Zone around it.
Under Assembly Bill 3676, businesses that set up shop within one mile of the airport or the Federal Aviation Administration William J. Hughes Technical Center — both of which make up an "aviation district" — would be eligible for tax incentives to help alleviate business costs.
The state already has five such zones in Atlantic City, Camden, Passaic, Paterson and Trenton. Officials have argued that growing the region’s aviation technology industry is vital for South Jersey, which they said cannot sustain solely on gaming and tourism revenue.
“Building a stronger and fairer New Jersey economy starts with the communities that were hit hardest by the economic downturn of 2008. Atlantic City can serve as a beacon of growth for Atlantic County and the state as a whole,” Murphy said in a prepared statement.
The airport is already a federal opportunity zone, which is defined as low-income regions of the state that are eligible for additional financial incentives. There are 169 such zones across the state.
Murphy sent a prior version back to the Legislature over his concerns about the Grow NJ and ERG programs, both of which are set to sunset on July 1, 2019.
One provision added at Murphy’s request was for the airport tax incentives to expire on the same date. Another amendment revised the rate of job creation and retention in order for businesses to be eligible for the credits.
Earlier this week, Murphy unveiled his economic master plan for the state, which calls for major revisions to both programs.
“Designating a regional growth zone in and around the airport will help foster a diversified economy that is so important to long-term growth,” Senate President Stephen Sweeney, D-3rd District, said in a prepared statement. “The International Airport can play a significant role as an aviation hub for the entire region, supporting the expansion of the aviation industry, the business community and educational institutions.”
Senate Bill 2307 sponsor Sen. Jeff Van Drew, D-1st District, said in a prepared statement the “aviation zone” around the airport will promote economic development, innovation and research around South Jersey.
"The airport’s proximity to educational institutions, including the new Stockton University campus in Atlantic City, creates enormous potential for the development of new aviation technology that will put the Atlantic City region at the forefront of the aviation industry,” Van Drew said. “Establishing a Garden State Growth Zone will bring high-paying jobs, business growth and economic opportunities to support sustained growth.”