Chris Christie Signs Bill Limiting Economic Subsidies

The New Jersey governor has approved a measure prohibiting the state from awarding tax breaks of more than $25,000 to an applicant that hasn't fulfilled the requirement of an earlier award.

Governor Christie on Wednesday signed a bill that prevents the state from awarding a tax break to a company that was in default on a previous award of a loan or loan guarantee.

 

The measure prohibits the state from awarding any "economic development subsidy" of more than $25,000 that is designed to stimulate economic development, including a bond, grant, loan, loan guarantee, matching fund, tax credit or other tax expenditure, if the applicant has not fulfilled the requirement of an earlier award.

Sponsors said the legislation will ensure that state funds are used responsibly.

"Economic development subsidies have a role to play in restoring our economy and putting New Jersey residents back to work," said Assemblyman Tim Eustace, D-Maywood.

"But it's important that they're awarded to businesses that are in good financial standing. This common-sense law will help ensure that taxpayer funds are used most efficiently."

 

Daniel Luzer is GOVERNING's news editor.