Provides tax credits for certain business headquarters located in State.
NJEA opposes A-5340 (Prieto, Bramnick). This bill is expected to serve as an incentive for Amazon to locate its new headquarters in New Jersey.
The bill would establish the Transformative Headquarters Economic Assistance Program under the Grow New Jersey Program and be administered by the New Jersey Economic Development Authority. The purpose of the Transformative Economic Assistance Program would be to encourage economic development and job creation in New Jersey by providing tax credits to a business establishing a “transformative corporate headquarters” in this State, which the bill defines as a headquarter that will house at least 30,000 new full-time jobs and cost at least $3 billion in capital investment. Under the bill, if Amazon meets those two criteria in establishing a headquarters in New Jersey, taxpayers would be obligated to pay Amazon $10,000 per year for 10 years for each full time job created for a total of at least $3 billion dollars with no upper limit on the amount of tax credits Amazon could realize.
While NJEA recognizes the good intent of this legislation, our organization believes that in an environment where resources are limited, to spur New Jersey’s economy, we should be making more investments in education, transportation infrastructure, higher education, affordable housing and other areas which have a direct impact on the lives of New Jersey residents. The quality of these and other key markers of success offer Amazon a tremendous incentive to locate its new headquarters in New Jersey. Additionally, the idea that New Jersey, which needs to raise revenue to fund its obligations would pay the equivalent of more than 10 percent of its annual budget to a corporation that made almost $140 billion (more than 4 times our annual budget) in 2017 to invest in the corporation’s continued growth is puzzling.
To be clear, the NJEA is supportive of Amazon locating its new headquarters in New Jersey. Doing so would be great for Amazon – as we are sure the decision makers at Amazon are well aware- but more importantly would be good for New Jersey residents and the economy of our state. However, as drafted, this inexplicably rich corporate tax incentive is unaffordable, unnecessary, and is in the best interest of Amazon, not New Jersey residents.
For these reasons, NJEA opposes A-5340 and asks you to vote “No” on this and other corporate tax giveaways which are not proven to be absolutely essential to grow New Jersey’s tax base.