As discussed in prior articles, Gov. Phil Murphy signed the New Jersey Economic Recovery Act of 2020 (Senate Bill 3295/ Assembly Bill 4) on January 7, 2021. The new law establishes a wide range of new initiatives that could total $11.5 billion over six years. Highlights include the Innovation Evergreen Fund, a program that will combine state funds with private capital to support start-ups; the Brownfields Redevelopment Incentive, which aims to facilitate the redevelopment of environmentally contaminated properties; and the Historic Property Tax Credit, which will incentivize the restoration of historic buildings.
So what does the timeline look like for making these programs a reality?
The New Jersey Economic Development Authority (NJEDA) will lead the implementation of the economic incentive programs. Its largest task will be enacting rules and regulations to govern the various programs.
“The signing of the Economic Recovery Act kicks off what the NJEDA expects to be a challenging, several-months-long process during which the NJEDA, in consultation with the Office of the Attorney General, will develop program rules and regulations that will facilitate consistent and compliant implementation of the incentives and other economic tools contained in the Act,” NJEDA CEO Tim Sullivan told ROI-NJ.
Several tax incentive programs will require consultation with other state agencies. “This process will involve, as called for in the act, working with other state agencies and departments, such as the Department of Community Affairs, Department of Labor, Office of the Treasurer, Department of Agriculture, the Department of Environmental Protection and others to codify comprehensive, sound processes for application, approval, certification, reporting and compliance for each of the programs,” Sullivan said. “All rules and regulations will be presented to the NJEDA’s board members for their input and approval.”
Once the NJEDA finalizes the proposed rule and regulations, they will be subject to a 60-day public comment period. The public will be able to submit written comments, which the NJEDA will consider before finalizing the rules and regulations. As Sullivan noted, the rulemaking process and public comment period are intended to ensure transparency. “These efforts will help to ensure the programs are executed in an equitable and transparent manner that creates maximum benefits for the state’s taxpayers, businesses and communities,” he said.
Next Steps for New Jersey Businesses
While implementation of the New Jersey Economic Recovery Act of 2020 will take time, it is never too soon to start exploring whether the new tax incentive program may be an option for your business. We encourage you to contact Scarinci Hollenbeck’s experienced business attorneys to discuss how you may benefit.
If you have questions, contact us
If you have any questions or if you would like to discuss the matter further, please contact me, Ted Schwartz, or the Scarinci Hollenbeck attorney with whom you work, at 201-896-4100.
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