the staff of the Ridgewood blog
Trenton NJ, Senator Joe Pennacchio has introduced legislation that would provide state income tax credits for landlords who voluntarily grant rent forgiveness to commercial tenants during the pandemic crisis.
“As the marathon of this financial recession drones on, more and more businesses are slipping deeper into debt and fast-approaching bankruptcy,” said Senator Pennacchio. “This bill encourages landlords to throw a life preserver to struggling businesses that are going under. The courtesy of emergency rent forgiveness could be the difference that helps businesses survive. Nobody benefits when employers close down, and landlords don’t want to see empty commercial buildings.”
Under Pennacchio’s bill, landlords who own commercial property and opt to provide rent forgiveness can claim tax credits up to one-third of the amount of rent forgiveness or a maximum of $5,000 from their corporate business tax or gross income tax liability.
“The credits will help landlords who may otherwise face a glut of vacancies created in the aftermath of the coronavirus outbreak,” said Pennacchio. “This legislation provides an incentive for property owners to work with businesses during this pandemic, and it will help in avoiding bank foreclosures and litigation.”
Pennacchio emphasized that there is no need to create new bureaucratic layers to initiate the program, and it may qualify for a portion of the $2 billion in federal coronavirus stimulus aid.
“The economy will reap triple benefits,” said Pennacchio. “If the state commits $100 million for credits, business will receive $300 million in relief that will save tax-paying companies and the jobs of citizens who already struggle to pay New Jersey outrageous tax rates.”