As part of the latest effort to lure the high-tech industry to New Jersey, state officials are backing a measure that would offer tax incentives to those kinds of industries.
Senate Bill 848 would have the state’s Economic Development Authority establish innovation zones around Camden, New Brunswick and Newark and provide tax incentives for businesses that create high-tech jobs within those zones. It describes such zones as the geographic area surrounding a research institution.
“New Jersey has all the ingredients for an explosive burst of high-tech economic growth and now is the time to solidify the synergy needed to reap benefits for decades to come,” said Senator Shirley Turner, D-15th District, a sponsor of the bill.
On Monday, the bill passed out of the Senate Economic Growth Committee in a 5-0 vote.
The thinking behind the bill is that each of these zones would foster a collaboration between research institutions, academic communities and the state’s high-tech industry.
A business would need to create at least 10 high-tech jobs within the zone to be eligible for the tax credit, which the EDA would establish at a base rate of $4,000 per year for each job.
The business could receive an additional $1,000 per year if the job is filled by someone who received an academic degree within the past 12 months.
“We have a highly educated population, an economy reliant on biopharmaceutical and technological industries and world-renowned research institutions,” Turner said.
In March, Gov. Phil Murphy unveiled plans for a 4 million-square-foot, state-of-the-art incubator hub in downtown New Brunswick that will serve as a research and innovation facility.
The site is owned by the city and under development by the New Brunswick Development Corporation. It will be situated next to the New Brunswick Train Station.