(Save the date: RealShare New Jersey comes to the Hyatt Regency, New Brunswick, NJ, September 19.)

TRENTON-The executive director of the commercial real estate group NAIOP-NJ tells GlobeSt.com his membership is solidly behind a legislative measure that would lift the cap by $250 million on the state’s tax credit programs for developers whose projects create or retain jobs.

“This is a compromise bill, one we strongly hope will advance to the desk of Gov. Chris Christie this week, and that he will sign” as is anticipated, Michael G. McGuinness of NAIOP says. “It’s certainly the right thing to do.”

Earlier this year, lawmakers were considering a proposal to re-infuse the popular Urban Transit Hub Tax Credit program – and a second program for smaller projects started up in January - with another $1 billion authorization.

The Economic Development Authority, which administers the Urban Transit Hub program and also the Grow NJ Assistance program, is currently reviewing its application procedures and credit pipeline, McGuinness notes. Gov. Christie has indicated to Assembly leaders he wants to see the study results and appropriate adjustments before authorizing another $1 billion.

“Meanwhile, we are quickly approaching the $1.5 billion maximum in tax credits that can be allocated under the original UTHTC bill,” McGuinness says. “No question the best thing to do is provide a stopgap way to continue funding through the summer.”

The bill to go before the governor would also extend the deadline to apply for UTHTC funds through July 2014, which would put it in line with the Grow NJ Assistance program.

Several very large tax credit awards approved this year – including $240 million to Panasonic Corp. if it builds a new headquarters in Newark – have provoked some controversy. And just recently, Honeywell International has raised some eyebrows by seeking a large Grow NJ credit to keep it from moving 1,100 employees to Pennsylvania. Less than two years ago, a different state incentive program was significantly expanded specifically to keep the Fortune 100 company from making that move.

Honeywell says its project costs for renovations to its facilities in Morris Township have significantly changed since then.

McGuinness says: “All these tax credits and incentive programs amount to the cost of doing business these days.” New Jersey can only compete nationally and internationally with effective, targeted incentives, he adds. And McGuinness says that the NAIOP membership generally supports the job the EDA is doing administering these programs, while also supporting the review of policies under way now.

Instant Insights /

With $250M Plan Up for Vote, CRE Industry Calls to Maintain Urban Hub Program

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