Gov. Phil Murphy plans to outline his economic vision for the state next week at the ON3 biotechnology campus in Passaic County.
Murphy’s plan, to be unveiled noon Monday at the campus that spans Nutley and Clifton, will encompass his administration’s efforts to steer away from a strategy of awarding billions of dollars in tax credits as the default approach to attracting businesses from out of the state to come to New Jersey.
“For too long, New Jersey has lagged behind the nation while working families and businesses have paid the price. New Jersey will once again be a visionary leader in our national and global economy,” Murphy said in a prepared statement. “We have the will and we have the people – and now we have our course.”
The state has two economic incentive programs: Grow NJ and the Economic Redevelopment and Growth tax credits, both awarded by the New Jersey Economic Development Authority and scheduled to sunset July 1, 2019.
Under former Gov. Chris Christie, $8 billion in credits were awarded, which Murphy has criticized.
“Economic incentives will be part of our recipe, there’s no question about that,” Murphy told NJBIZ in an interview. “They’re a tactic, not a strategy. They were a strategy in the last administration, that’s all they consistently used.”
In July, the NJEDA board approved spending almost $1.9 million to fund a two-year contract with consultancy McKinsey & Co. to study incentives as part of an economic master plan.
Murphy has said he wants the state’s economic credits to bolster small- and medium-sized companies, particularly those in the so-called innovation economy, which focuses on science, technology, engineering and mathematics.