New Jersey Assembly Bill A2892

New Jersey 2022-2023 Regular Session

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

Caption

Provides incentives for certain businesses associated with military installations.

Impact

The bill modifies several existing business incentive programs, including the small business loan program and the Grow New Jersey Assistance Program. It introduces reduced interest rates on loans for businesses engaging in eligible projects and establishes specific tax credits that could significantly lower operational costs. The financial support includes tax credit bonuses for companies that meet specific hiring criteria, such as $500 per employee for those working on educational and technological initiatives related to military operations.

Summary

Assembly Bill A2892 aims to enhance business incentives for companies associated with military installations in New Jersey. Specifically, the bill targets businesses located within a five-mile radius of military facilities, encouraging them to pursue innovative projects related to science, technology, engineering, and math (STEM) as well as research and development (R&D). These changes align with recommendations from the New Jersey Military Installment Growth and Development Task Force, which seeks to bolster local economies surrounding military sites by making it easier for companies to thrive and innovate.

Contention

Debates around A2892 are expected to focus on the balance between bolstering economic development and ensuring that appropriate safeguards against overreach in public funds are maintained. Proponents argue that incentivizing businesses in this sector will lead to job creation and innovation, while critics may express concerns regarding long-term dependencies on state assistance and whether such incentives could sideline other important business sectors or local communities not situated near military installations.