Urban Enterprise Zone Tax Exemption for Energy Purchases S-2358 (Assembly Desk Letter)
Monday, January 09, 2006

MEMORANDUM

TO: Members of the General Assembly

FROM: Kathleen A. Davis, Executive Vice President & COO

RE: S-2358 (Asselta, Sweeney) / A-3484 (Greenwald, Fisher, Burzichelli)

DATE: January 9, 2006

The Chamber of Commerce of Southern New Jersey strongly supports S-2358 (Asselta, Sweeney) / A-3484 (Greenwald, Fisher, Burzichelli), which will allow manufacturers in Urban Enterprise Zones with 250 or more employees to claim a sales and use tax exemption for energy and utility service purchases.

In essence, S-2358 / A-3484 will extend to these manufacturers in UEZs the same tax credit that was included in legislation passed last year, but only applied to manufacturers that employed at least 500 people. The Chamber believes the legislation that was enacted last year successfully helped larger companies compete globally; however, this legislation is needed to help the smaller manufacturing companies compete as well. With the passage of A-3484, these small businesses will have the same benefit as their larger counterparts. The sales and use tax exemption for their energy and utility purchases would be a valuable tool to help keep their product prices competitive.

UEZs were established to encourage manufacturing businesses to stay in urban areas so that they can provide jobs, and promote and protect the historical manufacturing base of our state. This legislation will allow them to do just that.

We urge you to vote yes on S-2358 / A-3484 so that economic development continues to occur in our state. Thank you for the opportunity to express our position on this important measure.