Bill Text: NJ A5146 | 2018-2019 | Regular Session | Introduced
Bill Title: Establishes manufacturing business assistance program to encourage manufacturing in certain areas of the State.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2019-03-05 - Introduced, Referred to Assembly Commerce and Economic Development Committee [A5146 Detail]
Download: New_Jersey-2018-A5146-Introduced.html
Sponsored by:
Assemblywoman ANNETTE QUIJANO
District 20 (Union)
SYNOPSIS
Establishes manufacturing business assistance program to encourage manufacturing in certain areas of the State.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning assistance to certain manufacturing businesses, amending and supplementing P.L.1974, c.80 (C.34:1B-1 et seq.), and supplementing P.L.1945, c.162 (C.54:10A-1 et seq.) and Title 54A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. (New section) As used in sections 1 through 3 of P.L. , c. (C. ) (pending before the Legislature as this bill):
"Authority" means the New Jersey Economic Development Authority established pursuant to section 4 of P.L.1974, c.80 (C.34:1B-4).
"Manufacturing business assistance program" or "program" means the manufacturing business assistance program established pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill).
"Manufacturing business" means a business operating a manufacturing facility in the State.
"Manufacturing equipment" means machinery, apparatus, or equipment used in the production of tangible personal property that is eligible for the sales tax exemption pursuant to section 25 of P.L.1980, c.105 (C.54:32B-8.13).
"Manufacturing facility" includes, but is not limited to, a factory, mill, or plant within a manufacturing zone, at which more than 50 percent of the personal property housed in the facility is manufacturing equipment.
"Manufacturing zone" means an area zoned within a municipality, through the municipality's zoning powers, solely for the purpose of locating one or more manufacturing facilities therein upon the enactment of an ordinance by the governing body of a municipality.
"Priority area" means:
a. an area that is designated as Planning Area 1 (Metropolitan) pursuant to the "State Planning Act," P.L.1985, c.398 (C.52:18A-196 et seq.);
b. an area within a municipality that is qualified to receive assistance under P.L.1978, c.14 (C.52:27D-178 et seq.); or
c. an area within a county in which there was an average annual unemployment rate exceeding the State average annual unemployment rate in the last full calendar year immediately preceding the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill).
2. (New section) a. The
authority shall establish a
manufacturing business assistance program within the authority. The program
shall consist of financial incentives and other types of assistance provided by
the authority to a manufacturing business where the manufacturing business's
manufacturing facility is located within a manufacturing zone. The authority
shall provide priority assistance to a manufacturing business having a
manufacturing facility in a priority area of this State.
b. The authority shall modify its existing programs, if permissible by law, to promote and support manufacturing businesses within a manufacturing zone. The authority, upon approval of the State Treasurer, shall modify its existing business assistance programs, if permissible by law, to provide bonuses or other enhanced incentives to a manufacturing business having a manufacturing facility located in a priority area.
c. The authority is authorized to call upon any department, authority, commission, board, office, division, or agency of the State to provide any information, resources, or other assistance deemed necessary to discharge their responsibilities under P.L. , c. (C. ) (pending before the Legislature as this bill), including, but not be limited to: the Department of the Treasury for assistance with manufacturing business funding assistance programs; the Department of Labor and Workforce Development for assistance in developing workforce development strategies for manufacturing businesses; the New Jersey Business Action Center to assist in manufacturing business attraction, expansion, and retention efforts and coordination with the New Jersey Manufacturing Extension Program, Inc.; and the Department of Community Affairs for assistance to manufacturing businesses participating in the Urban Enterprise Zone program established by P.L.1983, c.303 (C.52:27H-60 et al.).
d. The authority shall work cooperatively with other State departments, agencies, boards, commissions, and authorities to explore and implement opportunities to direct resources to those manufacturing businesses with manufacturing facilities operating within a priority area and may provide technology, financial, and workforce development opportunities to those manufacturing businesses. Each department, authority, commission, board, office, division, and agency of the State is hereby required to cooperate with the authority to furnish the authority with any information, personnel, and assistance as is necessary to accomplish the purposes of P.L. , c. (C. ) (pending before the Legislature as this bill).
3. (New section) a. The authority shall establish an advisory committee to advise and provide recommendations to the authority with respect to the functioning of the program and meeting the needs of the manufacturing businesses participating in the program. The executive director of the authority shall appoint the membership of the advisory committee, provided that at least seven members shall represent each of the following organizations: 1) the New Jersey Business and Industry Association; 2) the New Jersey State Chamber of Commerce; 3) the Commerce and Industry Association of New Jersey; 4) the African American Chamber of Commerce of New Jersey; 5) the Statewide Hispanic Chamber of Commerce of New Jersey; 6) the New Jersey Asian American Chamber of Commerce ; and 7) the Chemistry Council of New Jersey.
b. The advisory committee shall meet quarterly. Members of the advisory committee shall serve without compensation, but may be reimbursed for their actual and necessary expenses incurred in the performance of their duties pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill) within the limits of funds appropriated or otherwise made available by the authority to the advisory committee for its purposes.
c. The authority shall report annually to the Governor and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), to the Legislature on the recommendations provided to the authority by the advisory committee with respect to the functioning of the program and meeting the needs of participating manufacturing businesses. The report shall include, but not be limited to, the number and locations of manufacturing zones established by municipalities, the number of participating manufacturing businesses, the number of jobs created or maintained by participating manufacturing businesses, the amount of any capital investment made by participating manufacturing businesses as a result of participation in the program, and the type and amount of any financial assistance given to participating manufacturing businesses.
4. (New section) a. For privilege periods commencing on or after January 1, 2019 but before January 1, 2021, a taxpayer shall be allowed a credit against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5), in an amount equal to 10 percent of the amount paid during the privilege period for:
(1) new manufacturing equipment installed at a new or existing manufacturing facility located within a manufacturing zone in a priority area, or
(2) the acquisition, construction, reconstruction, installation, or erection of improvements or additions that result in the renovation, modernization or expansion of a manufacturing facility located within a manufacturing zone in a priority area, or
(3) the employment of any new full-time employee hired and retained for no less than 365 days after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), and who receives manufacturing related job training within six months of employment at a manufacturing facility located within a manufacturing zone in a priority area. For the purposes of this paragraph, "full time employee" shall not include an employee who is a resident of another state and whose income is not subject to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., unless that state has entered into a reciprocity agreement with the State of New Jersey. An employer shall receive the greater of 10 percent of the cost of training, salary, and benefits, which shall include medical and pension contributions paid by the employer, or the deduction to which the employer would be entitled under existing law.
An unused credit may be carried forward, if necessary, for use in the seven privilege periods following the privilege period for which the credit is allowed.
b. Credit shall not be allowed under P.L.1993, c.170 (C.54:10A-5.4 et seq.), P.L.1993, c.171 (C.54:10A-5.16 et al.), P.L.1993, c.175 (C.54:10A-5.24), or P.L.2001, c.321 (C.54:10A-5.31 et seq.) for expenditures for which a credit is allowed pursuant to subsection a. of this section.
c. The order of the application of the credit allowed under subsection a. of this section and any other credits allowed by law shall be based on the order in which completed applications are received by the Department of the Treasury. The amount of the credit applied under this section against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) for a privilege period, together with any other credits allowed against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5), shall not exceed 50 percent of the tax liability otherwise due and shall not reduce the tax liability to an amount less than the statutory minimum provided in subsection (e) of section 5 of P.L.1945, c.162 (C.54:10A-5).
d. As used in this section:
"Manufacturing equipment" means machinery, apparatus, or equipment used in the production of tangible personal property that is eligible for the sales tax exemption pursuant to subsection a. of section 25 of P.L.1980, c.105 (C.54:32B-8.13);
"Manufacturing facility" includes, but is not limited to, a factory, mill, or plant within a manufacturing zone, at which more than 50 percent of the personal property housed in the facility is manufacturing equipment;
"Manufacturing zone" means an area zoned within a municipality, through the municipality's zoning powers, solely for the purpose of locating one or more manufacturing facilities therein upon the enactment of an ordinance by the governing body of a municipality;
"Priority area" means: (1) an area that is designated as Planning Area 1 (Metropolitan) pursuant to the "State Planning Act," P.L.1985, c.398 (C.52:18A-196 et seq.); (2) an area within a municipality that is qualified to receive assistance under P.L.1978, c.14 (C.52:27D-178 et seq.); or (3) an area within a county in which there was an average annual unemployment rate exceeding the State average annual unemployment rate in the last full calendar year immediately preceding the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill); and
"Qualified manufacturing related job training" means: (1) occupational skills training or classroom instruction in performing a job within the manufacturing industry that the trainee receives or shall have received as an enrolled student at a county vocational school or county college in this State, or at any other institution of post-secondary education located in this State possessing accreditation as the Director of the Division of Taxation in the Department of the Treasury requires; or (2) on-the-job training in a job at premises located in this State owned and operated by the trainee's employer.
5. (New section) a. For taxable years commencing on or after January 1, 2019 but before January 1, 2021, a taxpayer shall be allowed a credit against the tax otherwise due under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., in an amount equal to 10 percent of the amount paid during the taxable year for:
(1) new manufacturing equipment installed at a new or existing manufacturing facility located within a manufacturing zone in a priority area, or
(2) the acquisition, construction, reconstruction, installation, or erection of improvements or additions that result in the renovation, modernization or expansion of a manufacturing facility located within a manufacturing zone in a priority area, or
(3) the employment of any new full-time employee hired and retained for no less than 365 days after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), and who receives manufacturing related job training within six months of employment at a manufacturing facility located within a manufacturing zone in a priority area. For the purposes of this paragraph, "full time employee" shall not include an employee who is a resident of another state and whose income is not subject to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., unless that state has entered into a reciprocity agreement with the State of New Jersey. An employer shall receive the greater of 10 percent of the cost of training, salary, and benefits, which shall include medical and pension contributions paid by the employer, or the deduction to which the employer would be entitled under existing law.
b. No tax credit shall be allowed pursuant to this section for any costs or expenses included in the calculation of any other tax credit or exemption granted pursuant to a claim made on a tax return filed with the director, or included in the calculation of an award of business assistance or incentive, for a period of time that coincides with the taxable year for which a tax credit authorized pursuant to this section is allowed.
c. The order of the application of the tax credit allowed under subsection a. of this section and any other tax credits allowed by law shall be based on the order in which completed applications are received by the Department of the Treasury. The amount of the tax credit applied under this section against the tax otherwise due under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., for a taxable year, when taken together with any other payments, credits, deductions, and adjustments allowed by law shall not exceed 50 percent of the tax liability otherwise due and shall not reduce the tax liability of the taxpayer to an amount less than zero. An unused tax credit may be carried forward, if necessary, for use in the seven taxable years following the taxable year for which the credit is allowed.
d. (1) A business entity that is classified as a partnership for federal income tax purposes shall not be allowed a tax credit pursuant to this section directly, but the amount of tax credit of a taxpayer in respect of a distributive share of entity income shall be determined by allocating to the taxpayer that proportion of the tax credit acquired by the entity that is equal to the taxpayer's share, whether or not distributed, of the total distributive income or gain of the entity for its taxable year ending within or with the taxpayer's taxable year.
(2) A New Jersey S Corporation shall not be allowed a tax credit pursuant to this section directly, but the amount of tax credit of a taxpayer in respect of a pro rata share of S Corporation income shall be determined by allocating to the taxpayer that proportion of the tax credit acquired by the New Jersey S Corporation that is equal to the taxpayer's share, whether or not distributed, of the total pro rata share of S Corporation income of the New Jersey S Corporation for its privilege period ending within or with the taxpayer's taxable year.
e. As used in this section:
"Manufacturing equipment" means machinery, apparatus, or equipment used in the production of tangible personal property that is eligible for the sales tax exemption pursuant to subsection a. of section 25 of P.L.1980, c.105 (C.54:32B-8.13);
"Manufacturing facility" includes, but is not limited to, a factory, mill, or plant within a manufacturing zone, at which more than 50 percent of the personal property housed in the facility is manufacturing equipment;
"Manufacturing zone" means an area zoned within a municipality, through the municipality's zoning powers, solely for the purpose of locating one or more manufacturing facilities therein upon the enactment of an ordinance by the governing body of a municipality;
"Priority area" means: (1) an area that is designated as Planning Area 1 (Metropolitan) pursuant to the "State Planning Act," P.L.1985, c.398 (C.52:18A-196 et seq.); (2) an area within a municipality that is qualified to receive assistance under P.L.1978, c.14 (C.52:27D-178 et seq.); or (3) an area within a county in which there was an average annual unemployment rate exceeding the State average annual unemployment rate in the last full calendar year immediately preceding the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill); and
"Qualified manufacturing related job training" means: (1) occupational skills training or classroom instruction in performing a job within the manufacturing industry that the trainee receives or shall have received as an enrolled student at a county vocational school or county college in this State, or at any other institution of post-secondary education located in this State possessing accreditation as the Director of the Division of Taxation in the Department of the Treasury requires; or (2) on-the-job training in a job at premises located in this State owned and operated by the trainee's employer.
6. Section 5 of P.L.1974, c.80 (C.34:1B-5) is amended to read as follows:
5. The authority shall have the following powers:
a. To adopt bylaws for the regulation of its affairs and the conduct of its business;
b. To adopt and have a seal and to alter the same at pleasure;
c. To sue and be sued;
d. To acquire in the name of the authority by purchase or otherwise, on [such] terms and conditions and [such] manner as [it] the authority may deem proper, or by the exercise of the power of eminent domain in the manner provided by the "Eminent Domain Act of 1971," P.L.1971, c.361 (C.20:3-1 et seq.), any lands or interests therein or other property which [it] the authority may determine is reasonably necessary for any project; provided, however, that the authority, in connection with any project, shall not take by exercise of the power of eminent domain any real property except upon consent thereto given by resolution of the governing body of the municipality in which [such] the real property is located; and provided further that the authority shall be limited in its exercise of the power of eminent domain in connection with any project in qualifying municipalities, as defined under the provisions of P.L.1978, c.14 (C.52:27D-178 et seq.), or to municipalities which had a population, according to the latest federal decennial census, in excess of 10,000;
e. To enter into contracts with a person upon [such] terms and conditions as the authority shall determine to be reasonable, including, but not limited to, reimbursement for the planning, designing, financing, construction, reconstruction, improvement, equipping, furnishing, operation, and maintenance of the project and to pay or compromise any claims arising therefrom;
f. To establish and maintain reserve and insurance funds with respect to the financing of the project or the school facilities project and any project financed pursuant to the "Municipal Rehabilitation and Economic Recovery Act," P.L.2002, c.43 (C.52:27BBB-1 et al.);
g. To sell, convey, or lease to any person all or any portion of a project for [such] consideration and upon [such] terms as the authority may determine to be reasonable;
h. To mortgage, pledge, or assign or otherwise encumber all or any portion of a project, or revenues, whenever [it] the authority shall find [such] that action to be in furtherance of the purposes of [this act] P.L.1974, c.80 (C.34:1B-1 et seq.), P.L.2000, c.72 (C.18A:7G-1 et al.), the "Municipal Rehabilitation and Economic Recovery Act," P.L.2002, c.43 (C.52:27BBB-1 et al.), P.L.2007, c.137 (C.52:18A-235 et al.), and sections 3 through 18 of P.L.2009, c.90 (C.52:27D-489c et al.);
i. To grant options to purchase or renew a lease for any of [its] the authority's projects on [such] terms as the authority may determine to be reasonable;
j. To contract for and to accept any gifts [or], grants, or loans of funds [or], property [or], financial, or other aid in any form from the United States of America or any agency or instrumentality thereof, or from the State or any agency, instrumentality, or political subdivision thereof, or from any other source and to comply, subject to the provisions of P.L.1974, c.80 (C.34:1B-1 et seq.), section 6 of P.L.2001, c.401 (C.34:1B-4.1), P.L.2000, c.72 (C.18A:7G-1 et al.), the "Municipal Rehabilitation and Economic Recovery Act," P.L.2002, c.43 (C.52:27BBB-1 et al.), and P.L.2007, c.137 (C.52:18A-235 et al.), with the terms and conditions thereof;
k. In connection with any action undertaken by the authority in the performance of its duties and any application for assistance or commitments therefor and modifications thereof, to require and collect [such] fees and charges as the authority shall determine to be reasonable, including, but not limited to, fees and charges for the authority's administrative, organizational, insurance, operating, legal, and other expenses;
l. To adopt, amend, and repeal regulations to carry out the provisions of P.L.1974, c.80 (C.34:1B-1 et seq.), section 6 of P.L.2001, c.401 (C.34:1B-4.1), P.L.2000, c.72 (C.18A:7G-1 et al.), the "Municipal Rehabilitation and Economic Recovery Act," P.L.2002, c.43 (C.52:27BBB-1 et al.), and P.L.2007, c.137 (C.52:18A-235 et al.);
m. To acquire, purchase, manage and operate, hold, and dispose of real and personal property or interests therein, take assignments of rentals and leases, and make and enter into all contracts, leases, agreements, and arrangements necessary or incidental to the performance of [its] the authority's duties;
n. To purchase, acquire, and take assignments of notes, mortgages, and other forms of security and evidences of indebtedness;
o. To purchase, acquire, attach, seize, accept, or take title to any project or school facilities project by conveyance or by foreclosure, and sell, lease, manage, or operate any project or school facilities project for a use specified in [this act] P.L.1974, c.80 (C.34:1B-1 et seq.), P.L.2000, c.72 (C.18A:7G-1 et al.), the "Municipal Rehabilitation and Economic Recovery Act," P.L.2002, c.43 (C.52:27BBB-1 et al.), P.L.2007, c.137 (C.52:18A-235 et al.), and sections 3 through 18 of P.L.2009, c.90 (C.52:27D-489c et al.);
p. To borrow money and to issue bonds of the authority and to provide for the rights of the holders thereof, as provided in P.L.1974, c.80 (C.34:1B-1 et seq.), section 6 of P.L.2001, c.401 (C.34:1B-4.1), P.L.2000, c.72 (C.18A:7G-1 et al.), the "Municipal Rehabilitation and Economic Recovery Act," P.L.2002, c.43 (C.52:27BBB-1 et al.), P.L.2007, c.137 (C.52:18A-235 et al.), and sections 3 through 18 of P.L.2009, c.90 (C.52:27D-489c et al.);
q. To extend credit or make loans to any person for the planning, designing, acquiring, constructing, reconstructing, improving, equipping, and furnishing of a project or school facilities project, which credits or loans may be secured by loan and security agreements, mortgages, leases, and any other instruments, upon [such] terms and conditions as the authority shall deem reasonable, including provision for the establishment and maintenance of reserve and insurance funds, and to require the inclusion in any mortgage, lease, contract, loan and security agreement, or other instrument, of [such] provisions for the construction, use, operation and maintenance, and financing of a project or school facilities project as the authority may deem necessary or desirable;
r. To guarantee up to [90%] 90 percent of the amount of a loan to a person, if the proceeds of the loan are to be applied to the purchase and installation, in a building devoted to industrial or commercial purposes, or in an office building, of an energy improvement system;
s. To employ consulting engineers, architects, attorneys, real estate counselors, appraisers, and [such] other consultants and employees as may be required in the judgment of the redevelopment utility to carry out the purposes of P.L.1974, c.80 (C.34:1B-1 et seq.), section 6 of P.L.2001, c.401 (C.34:1B-4.1), P.L.2000, c.72 (C.18A:7G-1 et al.), the "Municipal Rehabilitation and Economic Recovery Act," P.L.2002, c.43 (C.52:27BBB-1 et al.), P.L.2007, c.137 (C.52:18A-235 et al.), and sections 3 through 18 of P.L.2009, c.90 (C.52:27D-489c et al.), and to fix and pay their compensation from funds available to the redevelopment utility therefor, all without regard to the provisions of Title 11A of the New Jersey Statutes;
t. To [do and] perform any acts [and things] authorized by P.L.1974, c.80 (C.34:1B-1 et seq.), section 6 of P.L.2001, c.401 (C.34:1B-4.1), P.L.2000, c.72 (C.18A:7G-1 et al.), the "Municipal Rehabilitation and Economic Recovery Act," P.L.2002, c.43 (C.52:27BBB-1 et al.), P.L.2007, c.137 (C.52:18A-235 et al.), and sections 3 through 18 of P.L.2009, c.90 (C.52:27D-489c et al.), under, through or by means of its own officers, agents, and employees, or by contract with any person;
u. To procure insurance against any losses in connection with [its] authority property, operations, or assets in [such] amounts and from [such] insurers as [it] the authority deems desirable;
v. To do [any and] all things necessary or convenient to carry out [its] the authority's purposes and exercise the powers given and granted in P.L.1974, c.80 (C.34:1B-1 et seq.), section 6 of P.L.2001, c.401 (C.34:1B-4.1), P.L.2000, c.72 (C.18A:7G-1 et al.), the "Municipal Rehabilitation and Economic Recovery Act," P.L.2002, c.43 (C.52:27BBB-1 et al.), P.L.2007, c.137 (C.52:18A-235 et al.), and sections 3 through 18 of P.L.2009, c.90 (C.52:27D-489c et al.);
w. To construct, reconstruct, rehabilitate, improve, alter, equip, maintain or repair, or provide for the construction, reconstruction, improvement, alteration, equipping or maintenance, or repair of any development property and lot, award and enter into construction contracts, purchase orders, and other contracts with respect thereto, upon [such] terms and conditions as the authority shall determine to be reasonable, including, but not limited to, reimbursement for the planning, designing, financing, construction, reconstruction, improvement, equipping, furnishing, operation, and maintenance of [any such] the development property and the settlement of any claims arising therefrom, and the establishment and maintenance of reserve funds with respect to the financing of [such] the development property;
x. When authorized by the governing body of a municipality exercising jurisdiction over an urban growth zone, to construct, cause to be constructed, or to provide financial assistance to projects in an urban growth zone which shall be exempt from the terms and requirements of the land use ordinances and regulations, including, but not limited to, the master plan and zoning ordinances, of [such] the municipality;
y. To enter into business employment incentive agreements as provided in the "Business Employment Incentive Program Act," P.L.1996, c.26 (C.34:1B-124 et al.);
z. To enter into agreements or contracts, execute instruments, and do and perform all acts or things necessary, convenient, or desirable for the purposes of the redevelopment utility to carry out any power expressly provided pursuant to P.L.1974, c.80 (C.34:1B-1 et seq.), P.L.2000, c.72 (C.18A:7G-1 et al.), and P.L.2007, c.137 (C.52:18A-235 et al.), including, but not limited to, entering into contracts with the State Treasurer, the Commissioner of Education, districts, the New Jersey Schools Development Authority, and any other entity which may be required in order to carry out the provisions of P.L.2000, c.72 (C.18A:7G-1 et al.), P.L.2007, c.137 (C.52:18A-235 et al.), and sections 3 through 18 of P.L.2009, c.90 (C.52:27D-489c et al.);
aa. (Deleted by amendment, P.L.2007, c.137);
bb. To make and contract to make loans to local units to finance the cost of school facilities projects and to acquire and contract to acquire bonds, notes, or other obligations issued or to be issued by local units to evidence the loans, all in accordance with the provisions of P.L.2000, c.72 (C.18A:7G-1 et al.), and P.L.2007, c.137 (C.52:18A-235 et al.);
cc. Subject to any agreement with holders of [its] authority bonds issued to finance a project or school facilities project, to obtain as security, or to provide liquidity for payment of all or any part of the principal of and interest and premium on the bonds of the authority or for the purchase upon tender or otherwise of the bonds, lines of credit, letters of credit, reimbursement agreements, interest rate exchange agreements, currency exchange agreements, interest rate floors or caps, options, puts, or calls to hedge payment, currency, rate, spread, or similar exposure or similar agreements, float agreements, forward agreements, insurance contract, surety bond, commitment to purchase or sell bonds, purchase, or sale agreement, or commitments or other contracts or agreements, and other security agreements or instruments in any amounts and upon any terms as the authority may determine and pay any fees and expenses required in connection therewith;
dd. To charge to and collect from local units, the State, and any other person, any fees and charges in connection with the authority's actions undertaken with respect to school facilities projects, including, but not limited to, fees and charges for the authority's administrative, organization, insurance, operating, and other expenses incident to the financing of school facilities projects;
ee. To make loans to refinance solid waste facility bonds through the issuance of bonds or other obligations and the execution of any agreements with counties or public authorities to effect the refunding or rescheduling of solid waste facility bonds, or otherwise provide for the payment of all or a portion of any series of solid waste facility bonds. Any county or public authority refunding or rescheduling its solid waste facility bonds pursuant to this subsection shall provide for the payment of not less than fifty percent of the aggregate debt service for the refunded or rescheduled debt of the particular county or public authority for the duration of the loan; except that, whenever the solid waste facility bonds to be refinanced were issued by a public authority and the county solid waste facility was utilized as a regional county solid waste facility, as designated in the respective adopted district solid waste management plans of the participating counties as approved by the department prior to November 10, 1997, and the utilization of the facility was established pursuant to tonnage obligations set forth in their respective interdistrict agreements, the public authority refunding or rescheduling its solid waste facility bonds, pursuant to this subsection, shall provide for the payment of a percentage of the aggregate debt service for the refunded or rescheduled debt of the public authority not to exceed the percentage of the specified tonnage obligation of the host county for the duration of the loan. Whenever the solid waste facility bonds are the obligation of a public authority, the relevant county shall execute a deficiency agreement with the authority, which shall provide that the county pledges to cover any shortfall and to pay deficiencies in scheduled repayment obligations of the public authority. All costs associated with the issuance of bonds pursuant to this subsection may be paid by the authority from the proceeds of these bonds. Any county or public authority is hereby authorized to enter into any agreement with the authority necessary, desirable, or convenient to effectuate the provisions of this subsection.
The authority shall not issue bonds or other obligations to effect the refunding or rescheduling of solid waste facility bonds after December 31, 2002. The authority may refund its own bonds issued for the purposes herein at any time;
ff. To pool loans for any local government units that are refunding bonds and do and perform any and all acts or things necessary, convenient, or desirable for the purpose of the authority to achieve more favorable interest rates and terms for those local governmental units;
gg. To finance projects approved by the board, provide staff support to the board, oversee and monitor progress on the part of the board in carrying out the revitalization, economic development, and restoration projects authorized pursuant to the "Municipal Rehabilitation and Economic Recovery Act," P.L.2002, c.43 (C.52:27BBB-1 et al.) and otherwise fulfilling its responsibilities pursuant thereto;
hh. To offer financial assistance to qualified film production companies as provided in the "New Jersey Film Production Assistance Act," P.L.2003, c.182 (C.34:1B-178 et al.); [and]
ii. To finance or develop private or public parking facilities or structures, which may include the use of solar photovoltaic equipment, in municipalities qualified to receive State aid pursuant to the provisions of P.L.1978, c.14 (C.52:27D-178 et seq.) and municipalities that contain areas designated pursuant to P.L.1985, c.398 (C.52:18A-196 et al.) as Planning Area 1 (Metropolitan), Planning Area 2 (Suburban), or a town center, and to provide appropriate assistance, including but not limited to, extensions of credit, loans, and guarantees, to municipalities qualified to receive State aid pursuant to the provisions of P.L.1978, c.14 (C.52:27D-178 et seq.) and municipalities that contain areas designated pursuant to P.L.1985, c.398 (C.52:18A-196 et seq.) as Planning Area 1 (Metropolitan), Planning Area 2 (Suburban), or a town center, and their agencies and instrumentalities or to private entities whose projects are located in those municipalities, in order to facilitate the financing and development of parking facilities or structures in such municipalities. The authority may serve as the issuing agent of bonds to finance the undertaking of a project for the purposes of this subsection; and
jj. To establish and maintain a "manufacturing business assistance program" pursuant to sections 1 through 3 of P.L. , c. (C. ) (pending before the Legislature as this bill) for the purposes set forth therein.
(cf: P.L.2010, c.28, s.3)
7. This act shall take effect immediately.
STATEMENT
This bill requires the New Jersey Economic Development Authority (authority) to establish a manufacturing business assistance program (program). The program is to consist of financial incentives and other types of assistance provided to a manufacturing business where the manufacturing business's manufacturing facility is located within a manufacturing zone created by a municipality solely for manufacturing facilities under the municipality's zoning powers. The authority is to provide priority assistance to a manufacturing business having a manufacturing facility located in a manufacturing zone within a "priority area," as that term is defined in the bill. The authority is to modify its existing programs, if permissible by law, to promote and support manufacturing businesses in these areas.
The bill requires the authority, upon the approval of the State Treasurer, to modify its existing business assistance programs if permissible by law, to provide bonuses or other enhanced incentives to a manufacturing business having a manufacturing facility located in a manufacturing zone within a priority area.
The bill requires the authority to work cooperatively with other State departments, agencies, boards, commissions, and authorities to explore and implement opportunities to direct resources to those manufacturing businesses within priority areas, and provide technology, financial, and workforce development opportunities to those manufacturing businesses within these zones and priority areas.
The bill requires the authority to establish an advisory committee to meet quarterly to advise and provide recommendations to the authority with respect to the functioning of the program and meeting the needs of the manufacturing businesses participating in the program. The executive director of the authority is to appoint the membership of the advisory committee, provided that at least seven members are to represent each of the following organizations: 1) the New Jersey Business and Industry Association; 2) the New Jersey State Chamber of Commerce; 3) the Commerce and Industry Association of New Jersey; 4) the African American Chamber of Commerce of New Jersey; 5) the Statewide Hispanic Chamber of Commerce of New Jersey; 6) the New Jersey Asian American Chamber of Commerce; and 7) the Chemistry Council of New Jersey. The authority is to annually report to the Governor and the Legislature on the recommendations of the advisory committee and on those manufacturing businesses participating in the program.
The bill allows a taxpayer that is a manufacturing business within a manufacturing zone located in a priority area to apply for a corporation business tax credit or gross income tax credit for the 2019 and 2020 tax year equal to either:
• 10 percent of the costs of new manufacturing equipment installed at a new or existing manufacturing facility;
• 10 percent of the costs of improvements or additions that result in the renovation, modernization, or expansion of a manufacturing facility; or
• with respect to the employment of any new full-time employee hired and retained for at least 365 days following the effective date of the bill, the greater of 10 percent of the costs of training, salary, and benefits, or the deduction they are entitled to under current law.
The bill provides that expenditures in a manufacturing zone in a priority area for manufacturing equipment and manufacturing facility renovation, modernization, and expansion for which a corporation business tax credit is allowed under the bill are not to be expenditures for which a credit is allowed under the New Jobs Investment Tax Credit, the Manufacturing and Employment Investment Tax Credit, the Research and Development Credit, or the Effluent Treatment and Conveyance Equipment Credit. The bill also provides that a gross income tax credit is not allowed for any costs or expenses included in the calculation of any other tax credit or exemption granted pursuant to a claim made on a gross income tax return filed with the Director of the Division of Taxation in the Department of the Treasury.
The bill limits both the corporation business tax credit and the gross income tax credit to no more than 50 percent of the tax liability due under each respective tax. These tax credits are non-refundable and can be carried forward for either seven privilege periods or seven taxable years depending on each taxpayer's liability.
