On January 7, 2021, Governor Murphy signed the landmark New Jersey Economic Recovery Act of 2020. This long-awaited package of incentive programs is intended to encourage New Jersey job growth, property development and redevelopment, community partnerships, and numerous other policies. The 250 page piece of legislation marks the most significant action taken by the state’s government to improve economic growth and recovery since Governor Murphy took office.
“The legislation includes a host of new initiatives including the Main Street Recovery Finance Program, which will provide a direct $50 million appropriation for grants, loans, loan guarantees, and technical assistance to small and micro businesses.” There will also be a new Innovation Evergreen Fund, which will provide state funds to new and innovative start-ups. This bill also includes grants and incentives to rebuild urban centers and create safe and secure jobs within those city centers. Lastly, there will be new and reformed tax incentives.
“The legislation reforms the state’s two main tax incentive programs, placing caps on the amount of incentives awarded each year, as well as over the life of the programs. The programs, which incorporate many of the recommendations of the Governor’s Task Force on EDA’s Tax Incentives, greatly enhance compliance restrictions to ensure that money is being well spent and jobs are being created”.
Though this bill is still new and we are yet to see the full effects of its enactment, it is important for you and your small businesses to know that it is on the way and could be a possible boost to NJ and its economy that is suffering from COVID.
The New Jersey Economic Recovery Act of 2020 represents valuable opportunities for businesses, property owners and entrepreneurs in New Jersey, as well as those looking to relocate to New Jersey from out of state. We will continue to monitor and update on this Act, but this initial article provides an overview of new programs created by the Act.
For a full run down on this bill and further information on how this bill will provide aid to small businesses and usher in new era of economic development , check out these article from Choose New Jersey: