New Jersey Assembly Bill A2842

New Jersey 2022-2023 Regular Session

• Introduced: 2/28/22
• Refer: 2/28/22

Caption

Establishes Main Street Economic Growth Program to encourage business development in small, highly developed municipalities.

Impact

The proposed legislation will implement tax credits for participating businesses, allowing them to claim 15 percent of employee compensation expenses related to meeting specific employment criteria established by the New Jersey Economic Development Authority (EDA). The EDA will oversee the program's implementation, creating a set of criteria for businesses to qualify for financial benefits. This initiative is intended to alleviate the barriers small municipalities face in accessing state-level assistance for economic development.

Summary

Assembly Bill A2842, known as the Main Street Economic Growth Program, aims to support business development in small municipalities that are more than 70 percent developed and have populations under 11,000. The bill seeks to establish a special fund that would provide financial assistance, such as loans and loan guarantees, to area businesses within designated Main Street areas. By creating this program, the bill intends to address the unique challenges faced by these municipalities in fostering job growth and business expansion.

Contention

Opponents of the bill may raise concerns about the efficacy of targeted tax incentives and whether they genuinely stimulate growth or simply provide benefits to businesses without substantial returns in job creation. Furthermore, some critics might question the adequacy of financial oversight regarding the allocated funds and the transparency of the application and reporting processes outlined in the legislation.