New Jersey lawmakers pass multiyear $14B tax break bill

New Jersey lawmakers on Monday overwhelmingly passed legislation authorizing more than $14 billion in tax breaks for businesses.

The Democrat-led Assembly passed the bill 6811, while the Democrat-controlled Senate voted 38-1 in favor.

The legislation is designed to give an incentive to companies to rehabilitate historical properties, clean up brownfield sites, attract grocery stores to areas without them, invest in innovative projects and more.

Democratic Gov. Phil Murphy on Monday hailed the bill’s passage, citing the painful impact of COVID-19 on the state’s economy. He’s expected to sign the bill, but it’s not clear when.

“We’re going to need this,” he said. “I’m grateful we’re going to have this as a weapon.”

New Jersey has been without a business tax incentive program since July 2019 when the previous legislation signed under Republican Chris Christie in 2013 expired.

The legislation comes after lawmakers and Democratic Gov. Phil Murphy had stalemated over incentives, but it follows months of tough economic news stemming from COVID-19. The state’s unemployment rate is at 10.2% and businesses shuttered because of the governor’s coronavirus public health orders are struggling.

The legislation is massive, at 249 pages, with more than 100 pages of amendment introduced late last week. It also moved at lightning speed with the vote Monday coming just days after Murphy and legislative leaders said they reached an agreement.

Assembly Republicans chafed at the pace the bill was moving.

“The rush is incredible to get this bill through,” Assemblymember John DiMaio said.

GOP Assemblymember Serena DiMaso sought to amend the legislation to further help small businesses, but was rebuffed by the Democrat-led majority.

Murphy has said the scope of the economic crisis warranted the size of the program. He also defended the speed of its passage.

“It’s a little bit like we’re describing a painting that we’re painting and we’ve finally unveiled the painting. The only thing I can say is, it’s probably a larger painting than we would have predicted a year ago. Guess what? We’re in an economic reality comparable only to the 1930s and the 1860s, so it better be bigger,” Murphy said.