CCSNJ Supports Business Friendy Measures
Friday, October 24, 2008

MEMORANDUM

TO: Members of the New Jersey General Assembly

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

RE: A-2722 (Vas/Greenwald/Coutinho)

A-3124 (Greenwald/McKeon/Vas/Pou)

A-3377 (Schaer/Fisher/Spencer/Conners)

DATE: October 27, 2008

The Chamber of Commerce Southern New Jersey supports A-2722 (Vas/Greenwald/Coutinho), A-3124 (Greenwald/McKeon/Vas/Pou) and A-3377 (Schaer/Fisher/Spencer/Conners) which are business friendly measures that will help encourage and strengthen economic growth in New Jersey by changing the way certain companies are taxed.

A-3124 (Greenwald/McKeon/Vas/Pou) would increase the carryover period of net operating loss deductions under the corporation business tax for 20 years. The income averaging allowed in this legislation will permit businesses to recognize losses over a longer period of time, thereby freeing up capital that would have been paid in taxes to be used by the company to invest in its existing workers, hire new employees, purchase equipment, research and development activities, or simply to cover normal operating expenses. We believe this legislation will be an important tool for many of our member companies, including small businesses, high tech companies, manufacturers and start up companies.

The Chamber also supports A-2722 (Vas/Greenwald/Coutinho), which would eliminate the throwout of receipts in allocation of entire net income under the corporation business tax and eliminate the "regular place of business" requirement to allocate less than 100% of income to New Jersey. The elimination of the “throw out rule” and the “regular place of business” requirement are important components of an overall package of bills that are aimed at easing the business tax burden in our state, making it more attractive for expansion and location.

Lastly, the Chamber supports Governor Corzine’s Main Street Assistance Program, which is outlined in A-3377 (Schaer/Fisher/Spencer/Conners). This program would stimulate the economy and spur community investment during our current economic crisis by providing loans and guarantees to small and mid-sized businesses and non-profits for a period of two years.

The passage of these bills sends a strong signal to the business community that our policymakers recognize the position New Jersey is in terms of competitiveness, and are serious about positioning our state to rebound more quickly when the economy starts to turn around.

For these reasons, we urge you to support A-3124 Greenwald/McKeon/Vas/Pou), A-2722 (Vas/Greenwald/Coutinho) and A-3377(Schaer/Fisher/Spencer/Conners).