NJBIA President Philip Kirschner today thanked Governor Jon Corzine and the Legislature for enactment of a new law that will assist businesses by making New Jersey’s business tax environment more competitive with other States.

Corzine today signed S-2130 (Codey, Buono)/A-3124 (Greenwald, McKeon) into law extending New Jersey’s net-operating-loss (NOL) carry forward period to 20 years from the previous seven. It allows businesses that have a loss in one fiscal year to deduct that loss from income received for up to 20 future profitable years. The federal government and more than half of the states that have a corporation business tax allow NOLs to be deducted for 20 years.

"This law improves New Jersey economic competitiveness by leveling the playing field for New Jersey businesses," Kirschner said.  "Today's action conforms our tax laws in this area to those of our regional competitors, and sends a powerful message that New Jersey is taking positive steps to position itself for the future."

Kirschner pointed out that this bill was just one of several measures moving through the Legislature to address New Jersey’s economic woes.

"Both the Governor and the Legislature deserve credit for their swift response to the financial crisis that has gripped New Jersey and the nation," Kirschner said.  "Not only have they moved swiftly, but they have gotten the policies right as well."