Replacing tax rebates with tax credits bad for local businesses and New Jersey alike

NJbiz.com

When state Sen. Raymond Lesniak (D-Union) introduced legislation late last month to issue 10-year tax credits to businesses promised rebate checks under the now defunct Business Employment Incentive Program, he took a rather sanguine view of the bill and its benefits for local companies. “I would hope (the solution beats the alternative), because there’s certainly not any money in the budget to make the payments that are due now”, the senator from Union argued. Despite assurances that the business community might finally receive their share of inducements awarded to them in return for keeping projects in-state, New Jersey reneging on its initial commitments will do more harm than good for the state’s efforts to create a business-friendly climate.