New Jersey Assembly Bill A1835

New Jersey 2022-2023 Regular Session

• Introduced: 1/11/22
• Refer: 1/11/22

Caption

Establishes innovation zone program to stimulate technology industry clusters around New Jersey's research institutions; allows certain technology businesses located in certain innovation zones to receive certain tax credits under Grow New Jersey Assistance Program.

Impact

The establishment of this program is expected to create significant economic benefits by clustering technological developments around academic research institutions. This is seen as a strategic avenue to leverage New Jersey's historical strengths in innovation and technology. By targeting high-tech companies in specified areas, the bill aims to stimulate economic development and adaptation in response to global market challenges. Through collaboration with educational institutions, businesses are anticipated to gain access to skilled labor and innovative research, potentially leading to transformative advancements in various technology sectors.

Summary

Assembly Bill A1835 establishes an 'Innovation Zone' program within the New Jersey Economic Development Authority (EDA), aimed at stimulating technology industry clusters around the state's research institutions. The initiative is designed to attract high-technology businesses to these zones to foster collaboration between industry and academic sectors, enhancing job creation and job growth in New Jersey's knowledge-based economy. The bill proposes to enhance existing economic assistance programs to maximize incentives for businesses that locate in designated innovation zones, which include areas in Greater Camden, Greater New Brunswick, and Greater Newark.

Contention

While supporters argue the bill will result in increased economic opportunities and job creation, the potential for contention arises around the prioritization of these innovation zones. Concerns may be raised regarding resource allocation, particularly whether this initiative could inadvertently divert attention and funding from other vital regions or sectors within New Jersey's economy. Furthermore, there may be scrutiny about the effectiveness of tax credits as a tool for spurring genuine economic growth versus simply enriching businesses without proportional community benefits. The execution of the program will require careful monitoring to ensure it achieves its intended outcomes without unintended repercussions.