Gov. Phil Murphy conditionally vetoed a bill extending for seven months two troubled tax incentive programs administered by the Economic Development Authority.
“For the past six years, New Jersey has operated under a severely flawed tax incentive program that wasted taxpayer money on handouts to connected companies instead of creating jobs and economic growth,” Murphy said. “The program I’ve outlined in the conditional veto is one that creates good jobs and works for everyone, not just the connected few, and one that will help restore New Jersey’s prominence as the state of innovation.”
The changes Murphy included in his CV largely align with the tax incentive programs the governor proposed in October, which include total annual caps of $400 million.
Senate President Steve Sweeney, who for months has feuded with Murphy over the tax incentive programs that expired on July 1, has previously voiced opposition to caps on the state’s tax incentive programs.
Murphy’s 143-page conditional veto creates five separate incentive programs.
The NJ Forward program would provide tax breaks to U.S. businesses creating a Northeast headquarters, to foreign firms creating a U.S. headquarters and to businesses in the state that undertake development projects in an effort to retain jobs.
The NJ Aspire program would be responsible for financing redevelopment projects.
The three remaining programs are more narrowly focused.
The Brownfields Redevelopment Program aims to provide funds to aid redevelopment of polluted sites.
The Historic Preservation Tax Credit would reimburse some of the costs associated with the redevelopment of historic buildings that generate revenue.
The Innovation Evergreen Fund provides venture capital funds to startups.