New Jersey Assembly Bill A2101

New Jersey 2022-2023 Regular Session

• Introduced: 2/7/22
• Refer: 2/7/22

Caption

"Innovate New Jersey Act"; establishes tax-free business incubators at institutions of higher education.

Impact

The bill allows participating colleges and universities to designate areas of their campuses as 'tax-free New Jersey areas' specifically for businesses involved in technology-driven sectors. Eligible businesses will enjoy exemptions from state corporate, income, and local property taxes for five years, and from sales taxes for ten years. This is expected to stimulate economic growth and job creation within the state by supporting startups and novel business models that align with educational missions.

Summary

Assembly Bill A2101, known as the 'Innovate New Jersey Act,' establishes a framework for creating tax-free business incubators at public and private institutions of higher education in New Jersey. The primary objective of this bill is to foster entrepreneurship by transforming vacant or underutilized campus spaces into designated areas for new and expanding businesses. These facilities will be exempt from significant state taxes, thereby attracting innovative enterprises to leverage university resources and expertise.

Contention

Although the bill aims to stimulate economic growth, there may be concerns over the types of businesses that can participate, as it excludes several sectors like retail, restaurants, and financial services. This limitation may raise questions about the sustainability and variety of businesses that can realistically benefit from the program. Furthermore, the effectiveness of the tax incentives in actually creating new jobs and fostering long-term growth will be scrutinized, particularly if businesses fail to meet job creation benchmarks. Critics may argue about the adequacy of public resources being directed to support this initiative at institutions of higher education.