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New Jersey EDA trying to influence local business planning

The New Jersey Economic Development Authority, or EDA, is doing what it can to keep businesses in New Jersey. The EDA is tempting businesses like Honeywell International and Dotcom Distribution with $40 million in tax credits. Both Honeywell International and Dotcom Distribution's business planning is in a state of flux right now. Both companies are trying to decide whether to move to another state or renovate their current space in New Jersey.

The companies are only eligible for the tax credits, which are disbursed over 10 years, after construction or renovation is complete. Honeywell International thought about leaving the New Jersey back in 2010 but was convinced to stay. However, its renovation budget has increased from $50 million to approximately $100 million, so they are again considering a move.

Companies often make decisions based on financial incentives that states can provide them. Most often, those incentives are in the form of tax credits. They aren't only used to keep businesses in the state, but also to provide an incentive for new construction. The EDA is also providing $50.3 million in tax credits to a group that wants to build a new grocery store, an office building and a parking garage.

Part of a company's business planning needs is to decide where the company is going to be located. Part of the consideration for location is what, if any, incentives the local government is willing to extend to a company for doing business. Having advice and guidance in negotiating with local and state governmental entities may make all the difference in putting together a plan that benefits both the business and the local economy.

Source: GlobeSt.com, "Say You'll Stay, EDA Says To Honeywell, Offering $40M Tax Grant," Antoinette Martin, Sept. 13, 2012

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