Codey, Roberts Pledge to Take Action on Corporate Tax Relief at NJBIA Event Read
Take Steps Now to Fix NJ's Economy Before Things Get Worse, NJBIA Tells Committee Read
Dedicate More Funds for Energy Projects at Businesses, NJBIA Says Read
NJBIA Thanks Its Sponsors! Read
NJBIA to Honor Nine Members at Awards Ceremony on Nov. 5 Read
Manufacturing Council Takes on Workplace Safety Read
ASK THE EXPERTS! Sara Bluhm Read

John Rogers, NJBIA Read

The Legislature will take up corporate tax relief this fall as a part of an ongoing effort to address the weakening economy, the State’s top two Legislative leaders told 200 NJBIA members on September 26.  

Speaking at NJBIA’s Meet the Legislative Leaders event, Senate President Richard Codey and Assembly Speaker Joseph Roberts said they wanted to look at two issues strongly pushed by NJBIA—extending the carry-forward period for net-operating-loss deductions to 20 years from seven years and basing the Corporation Business Tax (CBT) solely on in-State sales.

“What would it mean to keep business here and attract more business here?” Codey asked rhetorically, underscoring the Legislature’s concern over the economic downturn.

New Jersey’s CBT is based on a company’s in-State sales, property and payroll.  For out-of-state companies that simply sell their goods in New Jersey, the payroll and property factors are zero, so they pay less in taxes than companies that create jobs and have facilities here.

NJBIA believes that is backwards and has urged the Legislature to adopt a single-sales-factor reform, that would base the CBT solely on a company’s in-state sales and not on its New Jersey payroll or facilities as well.

“These are long overdue for an adjustment in my opinion,” Roberts said.  “When you tax a building and a payroll, you send a pretty clear message that you should locate your business elsewhere.”

Similarly, New Jersey is one of only eight states that do not allow corporations to deduct net operating losses (NOLs) over a 20-year period.  Codey has introduced legislation that would extend NOL carry-forward periods beyond the current seven years to 20 years.  Assemblyman Lou Greenwald has introduced a similar bill in the Assembly.

On October 6, the Senate Budget and Appropriations Committee released the NOL expansion, S-2130 (Codey); the Assembly Budget Committee released the Assembly version of the NOL expansion, A-3124 (Greenwald, McKeon); and the Assembly Economic Growth Committee released the single-sales-factor reform bill, A-2626 (Vas). 

While the Wall Street financial crisis has brought economic issues to the forefront, Codey and Roberts pointed out that the Legislature had already passed economic-growth legislation to bolster New Jersey’s struggling economy.

The audience applauded when Codey cited the recent enactment of the NJBIA-backed Permit Extension Act, which extends existing permit approvals for construction projects through 2010. 

“If you have a right to develop a property and you’re stymied by the economic crisis, you deserve to get a breather,” Roberts said.

Codey also cited the $260 million the Legislature put into the Unemployment Insurance (UI) fund to prevent a $350 million automatic payroll tax increase.  Federal law requires UI taxes to increase automatically if the fund balance drops below a certain level.

Both leaders said that despite the Legislature’s effort they believe the current economic crisis will have an impact on New Jersey, especially in lost State tax revenues.  Codey said the Legislature is considering additional budget cuts.  He said he hoped action would be taken early to prepare for a revenue shortfall.

“What’s going on in Wall Street and down in DC affects us a great deal in New Jersey,” he said.  “We’re going to take a wallop because tax revenues are going to be down drastically.”

To address New Jersey’s economic downturn, legislators should take immediate action to stop the State’s job losses and position the State economy for strong future employment growth, NJBIA told the Assembly Labor Committee on September 22. 

The committee held an emergency hearing on the impact of the Wall Street financial crisis.

NJBIA Vice President John Rogers testified that New Jersey has lagged behind the nation in its rate of job growth for many years and that the State’s economic problems go much deeper than a national recession or the financial crisis.  

“The economic problems facing our State did not manifest themselves over the past two weeks; nor can they be simply written off as the effects of a weak national economy,” Rogers said.  “What New Jersey needs now is for our State leaders to act swiftly and decisively to stop the job losses.”

To get the State back on track, Rogers urged the Legislature to, among other things, reform New Jersey’s tax structure so that it no longer penalizes companies that create jobs here.  New Jersey’s Corporation Business Tax (CBT) actually imposes a higher tax on companies that create jobs and have facilities in New Jersey than it does on out-of-state companies that only sell goods here. 

Rogers urged the Legislature to adopt a single-sales-factor reform of the CBT, basing it solely on a company’s in-state sales.  

Legislation that would release an estimated $90 million in funding for energy efficiency and on-site-generation projects to businesses was released September 15 by the Senate Economic Growth Committee. 

Testifying in favor of S-1932 (Ruiz), NJBIA Assistant Vice President Sara Bluhm pointed out that businesses already provide the money for these funds by paying a “Retail Adder” tax on large, hourly priced electric bills.  The legislation would simply give businesses the benefits. 

The BPU is expected to have $90 million in the Retail Adder fund. The committee amended the bill to allocate $60 million for the development of on-site energy generation, known as combined heat and power projects, and $30 million for energy efficiency projects at businesses. 

NJBIA has long argued that financial incentives for energy conservation projects have been unfairly distributed. With an $11 return on investment for every dollar spent on business projects, the State should release this money immediately.  

Legislation that would allow New Jersey to impose its own energy sub code through the Uniform Construction Code would add to the cost of construction, NJBIA told the Senate Economic Growth Committee on September 15.  Nevertheless, the committee released the bill, S-702 (Smith), which would allow New Jersey to change the energy sub code at any time and to exceed national code standards.

NJBIA said any updates should follow national model codes, including Building Officials and Code Administrators International, Inc., the National Electrical Code, and the National Standard Plumbing Code.  

Currently the Uniform Construction Code Advisory Board works with the NJ Department of Community Affairs (DCA) to review any proposed changes to the building code. On a three-year cycle, changes to the code are proposed and adopted through the New Jersey Register.

NJBIA would like to thank its Premier sponsors and acknowledge their generosity.  Please visit their Web sites to learn more about these outstanding companies.

Premier

NJM Insurance Group

The Port Authority of New York & New Jersey

The NJ Department of Labor (DOL) has released the first two rounds of proposed rules to implement New Jersey’s Paid Family Leave Act, which provides up to six weeks of paid time off to employees at all businesses so they can spend time with newborns or seriously ill family members. 

The regulations can be found at NJBIA's new Paid Family Leave Web page, which was created to keep members up to date on the new law.

The proposal defines several important terms, clarifies the tax treatment of paid family leave insurance benefits and permits employers to offer these benefits through an approved “private plan.”  The second set of regulations explains how the program would be administered. 

Paid family leave was enacted this spring over fierce opposition from the business community.  Unlike the State’s unpaid leave law, which exempts small businesses with 50 or fewer employees, paid family leave will impact every employer, regardless of size.  To pay for the program, employees will begin paying an increase in their payroll taxes starting on January 1.  They will become eligible to take benefits on July 1, 2009. 

Written comments will be accepted until November 14 and can be faxed to (609) 292-8246 or mailed to:

David Fish, Regulatory Officer, Office of Legal and Regulatory Services, Department of Labor and Workforce Development, P.O. Box 110, 13th Floor, Trenton, New Jersey 08625-0110

Legislation that would reform the New Jersey Corporation Business Tax (CBT) so that it does not penalize manufacturers that are located in New Jersey and create jobs here, was released October 6 by the Assembly Economic Growth Committee.

The bill, A-2626 (Vas), would enact a single-sales-factor reform by basing the CBT tax formula solely on a company’s in-state sales.

Currently, the formula is based on a company’s in-state sales as well as any payroll or facilities it might have in New Jersey.  This favors out-of-state companies that have little or no presence in the State.  A company can actually lower its New Jersey CBT by moving its operations and jobs to another state.

At a time when New Jersey should be stimulating the economy and creating jobs, the corporate tax structure is working against it.  For more information, contact

The Assembly has passed a bill that would prohibit the NJ Department of Environmental Protection (DEP) from mandating public access to tidal waterfront areas at industrial facilities, chemical plants, refineries, and energy facilities.

The NJBIA-backed bill, A-2954 (Milam, Albano), passed the Assembly on September 25.  It would also prohibit the DEP from requiring facilities to pay for waterfront access elsewhere, which would just be another tax on businesses. 

The original purpose of the State’s public-access law was to ensure that people are not prevented from enjoying the State’s coastal bathing beaches.  But DEP went much further, requiring any property owner along any tidal waterway to provide 24-hour public access or pay to have that access provided elsewhere. 

NJBIA opposes the DEP rule and supports overturning it because providing public access at most industrial facilities is clearly impractical and dangerous, making it, in effect, yet another tax on businesses.  For more information, contact

“What New Jersey needs now is for our State leaders to act swiftly and decisively to stop the job losses we’re facing.”

NJBIA Vice President John Rogers, testifying before the Assembly Labor Committee

On Wednesday, November 5, New Jersey Business & Industry Association President Philip Kirschner will present the Association’s 2008 Awards for Excellence to nine companies for their outstanding achievements.

The awards will be presented at a dinner ceremony at The Pines Manor in Edison.

Every year, NJBIA honors a select group of employers from among its 23,000 members for their outstanding achievements in four categories: job creation, for exceptional employment growth in New Jersey; environmental quality, for protection of the environment; outstanding employer, for outstanding workforce management practices; and public service, for dedicated community service.

“It always gives us great pleasure to recognize the outstanding achievements of our member companies.  Each of our winners has a wonderful story that deserves to be told,” said NJBIA President Philip Kirschner.

The winners are selected by an independent panel of judges, who volunteer their time to conduct the judging.  This year’s judging panel was comprised of 29 individuals from the Service Corps of Retired Executives (SCORE).  Mercadien P.C., CPAs verified the information supplied by the winning applicants.
 

THE 2008 WINNERS

Job Creation Award
Presented to companies that have contributed to the State’s economic growth through the net creation of new jobs.

PTC Therapeutics, Inc.
South Plainfield

Environmental Quality Award
Presented to companies that have done outstanding work to preserve or enhance the quality of the environment in New Jersey.

Hackensack University Medical Center
Hackensack

Pictorial Offset Corporation
Carlstadt

Outstanding Employer Award
Presented to companies that demonstrate a creative and forward-looking approach to managing their human resources.

J. H. Cohn LLP
Roseland

Robert Wood Johnson University Hospital Rahway
Rahway

The Francis E. Parker Memorial Home
Piscataway

Public Service Award
Presented to companies for finding solutions to pressing social or economic problems in their communities and for committed leadership in serving those communities.

Harrah’s Entertainment
Atlantic City

Honeywell International
Morristown

Tilcon New Jersey
Wharton

Saving money on workers’ compensation costs through safer workplaces took center stage at NJBIA’s September Manufacturing Council meeting in Newark. 

Council members heard from workers’ compensation Judge Peter Calderone, who shared his insights into New Jersey’s present system, as well as members of NJBIA’s Board of Trustees, who shared some of the cost-effective strategies they’ve employed to make their workplaces safer and reduce their workers’ compensation costs.

Anthony Stonis, President of Cardolite and chairman of NJBIA Board of Trustees, outlined a program that teaches safety within the workplace culture.  Stonis noted that the Cardolite approach has significantly reduced workplace accidents, which has lowered workers’ compensation premiums. 

Glenn A. Gerber, chairman and CEO of Gerber Metal Supply Company and an NJBIA Trustee, said his company involves all employees in a program that rewards months worked without a work-related accident.  

The NJ Manufacturing Extension Program (NJMEP)  is providing the following workshops free of charge to NJBIA members (a $325 value).

October 30—Principles of Lean Food Production
November 19—Lean Tools for the Office
December 16—Principles of Lean Manufacturing

These full-day workshops will be held at the NJMEP’s Morris Plains office, except for the
October 30 Principles of Lean Food Production, which will be held at the Wyndham Mount Laurel.

Register now by calling 973-998-9801.

You may visit “What’s New” to see details and download fax-back registration forms.  Questions?  Contact at 609-393-7707, ext. 201.

Q. Energy costs at my business are going through the roof.  I really want to conserve energy, but I cannot afford a solar energy system or other expensive project.  Is there anything I can do to lower my energy bill without breaking my bank account?

A.  You’re not alone.  New Jersey has some of the highest electricity rates in the nation for commercial and industrial users, and costs continue to rise.  Many businesses simply do not have the millions of dollars solar energy projects require.  

That doesn’t mean there aren’t ways to cut back on your electric bill.  At NJBIA’s recent seminar, “Managing Energy Costs in Challenging Times,” energy experts offered advice on inexpensive ways to keep energy costs under control.

First, get your employees involved.  Involving everyone can be as simple as reminding people to turn lights off when leaving offices or conference rooms, or putting on the power-save option on equipment.

Next, evaluate what resources your company already has and how they could be used to implement an energy efficiency strategy.  Who on your staff knows the equipment that consumes the most energy?  Is there some knowledgeable person on your staff who could research ways to reduce energy consumption?  Do you have money for outside help?  Prepare a plan that lays out all of your options. 

When you have identified the people who can help, bring them together to form a “green team.”  Have them go through your operation to identify project areas and opportunities to cut energy consumption.  The green team can develop work plans that make more sense for energy consumption.  They could even develop a company-wide energy conservation effort, complete with an official launch or kickoff event.

Staff from all departments and levels should be encouraged to be a part of the team.  Projects might include raising/lowering the temperature a few degrees on programmable thermostats or installing automatic lighting controls.

Finally, analyze and track your facility’s energy usage.  Gather your utility bills and create a picture of how much energy your company uses.  Create a baseline to measure your energy needs and track how well your conservation efforts are working.  Many utilities have Web sites for commercial and industrial customers that will show your historical usage (usually past 12 months) and measure changes in consumption.

Q. What government programs can help me with energy conservation?

A. Many utilities offer their customers assistance with energy conservation projects.  Check with your energy suppliers about their programs.

NJ’s Clean Energy Program, run by the NJ Board of Public Utilities, offers commercial and industrial customers financial incentives, design support, and technical assistance to integrate energy efficient and renewable energy technologies into new construction, upgrades, and new cooling and heating equipment installations.  Visit their Web site at www.cleanenergy.org.  These programs are supported by a surcharge on your energy bills, so take advantage of them.

Manufacturers can also get free energy audits from the NJ Manufacturing Excellence Program (MEP).  The MEP provides a thorough plant assessment, helps evaluate where changes or upgrades could be beneficial, and makes recommendations to improve energy efficiency and pollution prevention. For more information, visit http://njme.rutgers.edu. 

Finally, the US Environmental Protection Agency’s Energy Star program is a good source of information.  Most people know the Energy Star label for appliances, but you can also find energy-efficiency guidebooks at www.energystar.gov.

SAVE THE DATE!

Wed., November 5
Awards for Excellence Dinner
NJBIA member companies that have achieved excellence in activities related to human resources management, environmental quality, public service, and job creation will receive NJBIA’s Award for Excellence during this awards dinner.  The program, to be held at the Pines Manor in Edison (Route 27), will begin at 6:00 p.m.  It will include a reception, dinner and the awards presentations.  The cost is $149 per person.  Tables of ten are available. Register online now, or contact at 609-393-7707, ext. 213.  To become a sponsor, contact ext. 219.

Friday, November 14
Health Insurance:  How to be a Savvy Purchaser
At this half-day seminar, top industry experts will show you how to get the best deal on health insurance for your business, including information on Health Savings Accounts and Health Reimbursement Accounts.  Small and medium-sized business owners, human resource managers, or anyone involved in selecting healthcare coverage for their companies should not miss this seminar!  It will be held at the Woodbridge Hotel and Conference Center in Iselin, from 8:30 a.m. to 12:30 p.m.  The cost to attend is $119 per person for NJBIA members and $149 for nonmembers. Register online now, or contact at 609-393-7707, ext. 213, for more information.  To become a high-visibility sponsor, contact ext. 219.

NJBIA PUBLIC POLICY FORUM
Tues., Dec. 9, 2008  •  Woodbridge Hotel & Conference Center
Making New Jersey a Better Place for Business: 
Economic Policies and Solutions

Governor Jon Corzine, the State’s top legislative leaders and seasoned economic and political experts will speak at this networking and public policy event of the year, starting with registration at 7:45 a.m.

8:15 a.m. - 11:00 a.m.  Opening Breakfast Program
Presentation of Paul L. Troast Award
Recipient:  Hon. Shirley Turner, State Senator

2009 Business Outlook—Philip Kirschner, President, NJBIA

Featured morning speaker—US Senator-Elect

Legislative Leaders panel—Joe Bisicchia of Comcast Newsmakers will moderate a discussion of the major business issues going into 2009.  Panelists will be Richard Codey, President, NJ State Senate; Joseph Roberts, Speaker, NJ General Assembly; Tom Kean, Republican Leader, NJ State Senate; and Alex DeCroce, Republican Leader, NJ General Assembly.

11:00 a.m. - Noon  Concurrent Panel Discussions
NJ’s Political and Economic Outlooks

12:15 p.m. - 2:00 p.m.  Luncheon Program
Presentation of Leonard C. Johnson Award
Recipient:  Michael Karlovich, ConocoPhillips Bayway Refinery

Keynote speaker—Governor Jon Corzine

Register online now, or contact at 609-393-7707, ext. 213, for more information.  To become a high-visibility sponsor, contact ext. 219.

Mon., December 15
Made in New Jersey Day
Sign up now to exhibit your company’s New Jersey-made products and tell your story to the Governor and legislators at the State House in Trenton. There is no cost to exhibit, but you must be a NJBIA member.  The event will run from 7:30 a.m. to 3:00 p.m. and will include breakfast and lunch for exhibitors. Register online now, or contact at 609-393-7707, ext. 213, for more information. To become a high-visibility sponsor, contact ext. 219.