Articles

January 13, 2016

BEIP’s Revision of the Business Province

Underlining New Jersey’s innovative new bill

Leaping into the New Year, the New Jersey Legislature settled an overwhelming amount of proposed bills on Monday, the final voting day in the current legislative session. Among the exhausting 171 bills passed, vetoed, and signed, was the Business Employment Incentive Program, or BEIP, which will begin merrily handing out tax breaks to numerous companies henceforth.

The novel ruling indicates a notable triumph for companies in New Jersey, who formerly missed out on rebate checks in years prior, and in consequence, will now collect tax benefits for comparable amounts. Along with revamping the state’s economy, the bill provides various advantages in the job market for corporations in the prosperous Garden State.

Keeping its promise

Prior to the signed bill, the corporations of New Jersey encountered a budding setback: the government was not upholding its assurance on implementing expenditures to its companies. Thus, the failure to deliver prompted fury among those industries that had contributed to mounting employment and economic progress in the state. With some relocating their businesses to New Jersey, only to find the state had not reciprocated financially, they were left to appoint countless firm leaders to protest that New Jersey did not fulfill its remaining obligations. 

As the state’s image laid in pieces, it was anticipated that a “business incentive” renewal would be signed into action to reassure business owners of novel reliability and transformation in New Jersey’s heads of state. The approved bill, now authorized by Governor Christie, gives recipients the chance to take tax credits instead of grants—making the payment procedure much simpler to accomplish, since industries would be rewarded the tax reduction over several years.

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New Jersey’s incentive programs are crucial for enticing and preserving dealings with the purpose of the state and its establishments appreciating the cost-effective prosperities the jobs investments offer.

By presenting BEIP receivers the option of tax credits in preference of grants, the law supplies companies with more latitude and constancy in hopes of a brighter future. Quenching each firm’s monetary appetite through the use of tax credits will permit businesses to resume occupational engagement and incite prosperity throughout the communes of New Jersey.

If you have any questions regarding the information in this article, plesae contact Chris Colyer, Tax Partner at ccolyer@wiss.com or 973.994.9400.