Tag: anti business NJ

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Business tax rebates go unpaid by New Jersey

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111641455

Business tax rebates go unpaid by New Jersey

FEBRUARY 17, 2015, 9:49 PM    LAST UPDATED: TUESDAY, FEBRUARY 17, 2015, 9:49 PM
BY HUGH R. MORLEY
STAFF WRITER |
THE RECORD

As the state pours billions of dollars in business tax breaks into programs aimed at strengthening New Jersey’s struggling economy, it has put the brakes on another incentive program, leaving hundreds of companies without promised payments that could total in the hundreds of millions of dollars.

Seeking to balance the state budget over the last few years, the Christie administration and the Legislature have each slashed funding for the Business Employment Incentive Program, commonly referred to as BEIP, eliminating payments to companies that were promised annual income tax rebate checks in return for moving to New Jersey or expanding here.

The affected businesses range from HighRoad Press — a small printing company that was promised $345,000 over 10 years for its move from Manhattan to Moonachie — to retail giant Bed Bath & Beyond, which is owed $2.8 million for creating jobs in 2012 and 2013. Paying out the money from these awards — estimated at $650 million according to one state estimate — would seem out of reach without an unexpected massive boost in state revenues. The state stopped awarding new grants under the program in 2013.

https://www.northjersey.com/news/business-tax-rebates-go-unpaid-by-new-jersey-1.1272924

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Lure of the South takes a toll on corporate NJ; new demographics, globalization play roles

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Lure of the South takes a toll on corporate NJ; new demographics, globalization play roles

JANUARY 7, 2015, 11:36 PM    LAST UPDATED: THURSDAY, JANUARY 8, 2015, 6:28 AM
BY HUGH R. MORLEY
STAFF WRITER |
THE RECORD

Forty-five years after New Jersey’s manufacturing industry began its decline, as companies started moving their factories to the South, there are signs that the state’s corporate sector may be going the same route.

Tuesday’s announcement by Mercedes-Benz USA that it plans to move its corporate headquarters from Montvale to metro Atlanta followed similar announcements in the last 18 months by Hertz of Park Ridge, which moved to Florida’s Gulf Coast, and Sealed Air of Elmwood Park, which is moving to Charlotte, N.C.

So now three Fortune 500 companies, along with nearly 2,000 jobs, are moving or have moved to Southern locations that years ago would likely not even have been considered by corporate executives.

Though they cited reasons for their moves specific to their business or industry, it’s clear that the South now holds an attraction that it once did not. A variety of factors are in play, including lower taxes and operating costs, an improved quality of life and a stronger workforce.

“I don’t think it’s a tidal wave yet,” said James Hughes, dean of the Bloustein School of Planning & Public Policy at Rutgers University. But change is clearly afoot, he said.

“What’s changed is the perception of the South,” he said. “After the first frontier companies moved there, they proved that there is no problem securing a high-quality workforce, and that people would migrate there if there were good jobs available.”

To be sure, many companies have left New Jersey for other destinations. New York’s Rockland and Orange counties, for example, still attract a good number of companies, including Hunter Douglas and Croton Watch Co. recently. Yet the lure of the South appears to be growing.

https://www.northjersey.com/news/lure-of-the-south-takes-a-toll-on-corporate-nj-new-demographics-globalization-play-roles-1.1187618