Earlier today, Governor Murphy conditionally vetoed (CV) legislation to extend New Jersey’s corporate subsidy programs for seven months. In response to the CV, New Jersey Policy Perspective issues the following statement:
BRANDON McKOY, PRESIDENT, NEW JERSEY POLICY PERSPECTIVE:
“Governor Murphy made the right decision to veto an extension of New Jersey’s corporate subsidy programs. There is mounting, indisputable evidence that these tax credits failed to meet their stated goals, enabled abuse, and lacked the proper oversight to protect against fraud.
“New Jersey’s corporate subsidies are a national outlier, not only in their size and scope, but also in how little the state received as a return on investment. Simply put, neither New Jersey taxpayers nor the state budget can afford for these programs to continue.
“The Legislature must take full advantage of this opportunity to revamp the state’s approach to economic development. The reforms included in Governor Murphy’s conditional veto provide a strong foundation for moving forward. By implementing hard caps on awards, stronger oversight, and worker protections, New Jersey can ensure tax credits benefit not only the companies receiving them, but also their employees and broader state economy.”