State Sen. Joe Pennacchio put forward a plan to help the state’s businesses contend with the economic impacts of the coronavirus pandemic, specifically rent.
Legislation the senator will introduce would provide landlords with a tax credit for waived rent charges.
Sen. Pennacchio said the pandemic stripped companies of the ability to adapt to the market or perform normal tasks, and that under current stay-at-home orders, many had no realistic prospects of generating income.
How the Plan Works
The plan would provide a landlord with a state tax credit worth a third of the forgiven rent. The waived rent could represent all or part of three months’ worth of payment, and the plan would operate up to $15,000.
Sen. Pennacchio noted the state’s efforts would provide massive benefits for companies. Additionally, the program could be eligible for a portion of federal coronavirus aid respond funding.
“We will reap triple benefits. If the state commits $100 million, business will get $300 million in relief that will save tax-paying companies and the jobs of citizens who already struggle to pay New Jersey outrageous tax rates,” he said.
Protecting Main Street’s Future
Sen. Pennacchio noted many landlords in the state wanted to do the right thing, and that the legislation would help them do so.
Additionally, he said the funding would help to protect businesses that found themselves powerless amid the coronavirus pandemic.
“My legislation will help reduce the number of businesses defaulting on leases and prevent a glut of vacancies created in the aftermath of the coronavirus outbreak,” he said.
Sen. Pennacchio will introduce a resolution urging the federal government to adopt similar tax credits.
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