Lawmakers propose tax credits for New York companies that open offices in New Jersey

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Final response from New Jersey lawmakers to the proposal congestion pricing in Manhattan is new legislation that would provide tax incentives to New York businesses that let their New Jersey employees work in the Garden State rather than cross the Hudson River.

U.S. Representative Josh Gottheimer, joined by state officials and business leaders, announced the proposal at a Tuesday press conference at Fair Lawn. Offering tax credits to keep commuters on this side of the Hudson would allow New Jersey commuters to avoid the planned congestion toll, which could costs them up to $23 a daysaid the Bergen County Democrat.

“I’m sick of New York laughing at us. As we say here in Jersey, with friends like them, who needs enemies? he said.

He calls it the “Stay in Jersey” bill. State Sen. Joe Lagana and Congresswoman Lisa Swain, both Democrats from Bergen County, are expected to introduce the bill in the state Legislature. Gottheimer said it would save residents $20,000 a year when factoring in the $16 toll through a bridge or tunnel, congestion toll, gas and parking.

New York’s controversial congestion pricing plan, first approved in 2019, would charge drivers entering Manhattan below 60th Street and is expected to bring in $1 billion a year.

Gottheimer, a critic of the toll program, not only takes issue with the nearly $40 a day New Jersey drivers would have to pay to work in New York, but also opposes the plan to keep all earnings in New York. Congestion tolls would fund the Metropolitan Transportation Authority’s capital infrastructure plan.

“Just read MTA spelled backwards and it tells you exactly how New York is looking at New Jersey right now: like their personal ATM,” he said. “The last thing a terribly mismanaged government authority needs – an authority riddled with investigations – is more money.”

A new report from the Federal Highway Administration, the MTA Triborough Bridge and Tunnel Authority and the New York City and State Departments of Transportation says congestion pricing could reduce congestion by nearly 20%, improve air quality, increase the use of public transport and help make bus service more reliable.

Janno Lieber, president and CEO of the MTA, called congestion pricing “good for the environment, good for public transit, and good for New York and the region,” according to The City. Public hearings on the plan are scheduled for later this month.

The New Jersey measure would establish the “New Jersey Expanded Assistance Program” within the state’s Economic Development Authority, with $15 million a year allocated through 2027.

To be eligible for tax credits, businesses expanding into New Jersey must show that they will acquire or lease a facility where full-time employees will work and prove that the new locations will reduce travel costs for workers. existing full-timers moving to work in New Jersey. Jersey.

The tax credit would be $250 per existing full-time employee who works at least 60% of their time at the New Jersey location.

Lagana said he’s aware some companies are struggling to get employees back to their offices after years of working from home. Lawmakers are ready to hear from employers about how this tax credit would benefit them, he said.

“We will take inspiration from them. We don’t want to do a one-size-fits-all program. We want to see what will work, and if we have to adjust as we go, we will,” he said.

He expects bipartisan support for the measure, he said.

The New Jersey Chamber of Commerce and the New Jersey Restaurant and Hospitality Association both attended Gottheimer’s press conference on Tuesday to support the legislation.

Gottheimer recently introduced federal legislation prohibiting the use of federal funds to implement congestion pricing programs until an economic impact analysis is completed and publicly available.

On Tuesday, he highlighted how more offices in North Jersey would mean residents would save time commuting and, in turn, spend more time with family and in their local town centres.

“Our residents will save on paying taxes in New York and save on overpriced gas and food in New York, while reducing pollution from a long drive and helping to protect the environment, and most importantly, staying here and working from Jersey,” he said.

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