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A4426
ASSEMBLY, No. 4426
STATE OF NEW JERSEY
222nd LEGISLATURE
�
INTRODUCED FEBRUARY 19, 2026
Sponsored by:
Assemblyman� SEAN T. KEAN
District 30 (Monmouth and Ocean)
SYNOPSIS
���� Establishes EDA grant program to support increased
business expenses incurred by certain businesses impacted by certain public
highway projects; provides 50 percent sales and use tax exemption in impacted
municipalities; appropriates $1 million.
CURRENT VERSION OF TEXT
���� As introduced.
��
An Act
providing for grants and a partial sales and use tax exemption
for certain businesses impacted by certain public highway projects,
supplementing Titles 34 and 54 of the Revised Statutes, and making an
appropriation.
����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:
���� 1.��� As used in
P.L. ,
c. (C. )
(pending before the Legislature as this bill):
���� "Applicant" means a
retail business establishment seeking a grant pursuant to
P.L. ,
c. (C. )
(pending before the Legislature as this bill).
���� "Authority" means
the New Jersey Economic Development Authority, established pursuant to section
4 of P.L.1974, c.80 (C.34:1B-4).
���� "Business day" means
a calendar day during which a retail business establishment incurs business
expenses.
���� "Business expenses"
means the costs incurred by a retail business establishment that are necessary
for the day-to-day operation of the retail business establishment.� �Business
expenses� may include, during a relief period, lost revenues, including, but
not limited to, profit loss due to the public highway project.
���� "Impacted construction
zone" means any area immediately surrounding a public highway project,
within which area the occurrence of the public highway project impedes or
blocks the normal and reasonable flow of traffic or otherwise restricts access
to business establishments located within the area.
���� "Public highway project"
means any infrastructure project that involves the construction, improvement,
or maintenance of a State, county, or municipal highway, road, bridge, or
street, including, but not limited to, the repair or reconstruction of any
highway, road, bridge, or street that has suffered serious damage as a result
of a natural disaster or catastrophic failure from any external cause.
���� "Relief period"
means the period of time between the date on which a public highway project
commences and the date on which the project concludes.
���� "Retail business
establishment" means a small business that maintains a fixed permanent
location where goods are exhibited or services are offered, on-site or
off-site, on an appointment or walk-in basis.� For the purposes of this
definition, offered services may include, but shall not be limited to, charter
boat services.
���� "Small business"
means a business that has no more than 50 full-time employees, is independently
owned and operated, has its principal place of business in the State of New
Jersey, and is not delinquent or deficient with respect to the payment of any
State tax.
���� 2.��� a. The authority shall
establish and administer a grant program to provide financial assistance to
reimburse the costs of increased business expenses incurred during a relief
period as a direct result of a public highway project by a retail business
establishment that operates within an impacted construction zone.
���� b.��� An applicant seeking a
grant pursuant to this section shall submit an application to the authority in
such form and manner as the authority may require.� In addition to any other
information or documentation that the authority shall deem necessary, an application
for a grant pursuant to this section shall include:
���� (1)�� evidence that the
applicant is a retail business establishment that meets the criteria set forth
in subsection a. of this section;
���� (2)�� documentation of the
business expenses regularly incurred by the applicant prior to the relief
period, which documentation shall demonstrate the business expenses incurred
during a period containing an equal number of business days to the period for
which a grant is sought pursuant to this section; and
���� (3)�� documentation of the
increased business expenses incurred by the applicant during the relief period
as a direct result of the public highway project, which documentation shall
include the number and dates of business days for which a grant is sought pursuant
to this section.
���� c.���� The authority shall
review and approve applications for the grant program on a rolling basis,
subject to the availability of funds for the program.� Upon the approval of an
application, the authority shall issue a grant to the approved applicant in an
amount equal to the difference between the increased business expenses incurred
by the applicant during the relief period as a direct result of the public
highway project, and the business expenses regularly incurred by an applicant
prior to the relief period, as demonstrated to the authority�s satisfaction in
an application submitted pursuant to subsection b. of this section.� The
amounts used in the calculation of a grant award pursuant to this section shall
represent the business expenses for an equal number of business days prior to
and during the relief period.
���� d.��� To assist the authority
in the review of applications under this section, upon the commencement or
completion of a public highway project, the Commissioner of Transportation
shall provide written notice to the authority attesting to the commencement or
completion of the project, as applicable.� Within 30 days following the
effective date of P.L. ,
c. (C. )
(pending before the Legislature as this bill), the commissioner shall provide
written notice to the authority attesting to each ongoing public highway
project within the State.
���� 3.��� a. A seller that
operates a retail business establishment within an impacted municipality shall
be entitled to an exemption to the extent of 50 percent of the tax imposed
under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.),
provided that the seller is approved by the director pursuant to subsection b.
of this section.
���� b.��� (1) Before or after the
commencement of a public highway project, a seller may apply to the director
for the exemption authorized under this section.� The application shall be
submitted in a form and manner prescribed by the director.� The director shall
require the seller to submit such documentation as the director deems necessary
to verify that the seller operates a retail business establishment within an
impacted municipality.
���� (2)�� If the director deems
that the seller meets the conditions set forth in subsection a. of this
section, the director shall issue a written determination to the seller, which
determination shall indicate the retail business establishments to which the
exemption shall apply and the relief period during which the exemption shall
apply.
���� c.���� (1) Upon the
commencement or completion of a public highway project, the Commissioner of
Transportation shall provide written notice to the director attesting to the
commencement or completion of the project, as applicable.� Within 30 days
following the effective date of P.L. ,
c. (C. )
(pending before the Legislature as this bill), the commissioner shall provide
written notice to the director attesting to each ongoing public highway project
within the State.
���� (2)�� Within 30 days of
receiving the written notice from the commissioner concerning the completion of
a public highway project, the director shall provide written notice to each
seller for which an exemption has been authorized related to the public highway
project, which notice shall indicate that the seller's exemption under this
section is terminated, as of the date of receipt of the written notice.
���� d.��� As used in this section:
���� "Commissioner" means
the Commissioner of Transportation.
���� "Director" means the
Director of the Division of Taxation in the Department of the Treasury.
���� "Impacted
municipality" means any municipality in which an ongoing public highway
project is located.
���� "Public highway
project" means any infrastructure project that involves the construction,
improvement, or maintenance of a State, county, or municipal highway, road, bridge,
or street, including, but not limited to, the repair or reconstruction of any
highway, road, bridge, or street that has suffered serious damage as a result
of a natural disaster or catastrophic failure from any external cause.
���� "Relief period"
means the
period of time between the date on which a
public highway project commences and the date on which the project concludes.
���� "Retail business
establishment" means a small business that maintains a fixed permanent
location where goods are exhibited or services are offered, on-site or
off-site, on an appointment or walk-in basis.� For the purposes of this
definition, offered services may include, but shall not be limited to, charter
boat services.
���� 4.��� a. Notwithstanding the
provisions of the "Administrative Procedure Act," P.L.1968, c.410
(C.52:14B-1 et seq.) to the contrary, the authority may adopt, immediately,
upon filing with the Office of Administrative Law, such rules and regulations
as the authority deems necessary to implement the provisions of sections 1 and
2 of
P.L. , c. (C. )
(pending before the Legislature as this bill), which regulations shall be
effective for a period not to exceed 180 days from the date of the filing.�
Thereafter, the authority shall amend, adopt, or readopt any regulations issued
pursuant to this subsection in accordance with the requirements of the "Administrative
Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.).
���� b.��� Notwithstanding the
provisions of the "Administrative Procedure Act," P.L.1968, c.410
(C.52:14B-1 et seq.) to the contrary, the Director of the Division of Taxation
in the Department of the Treasury shall adopt, immediately, upon filing with
the Office of Administrative Law, such rules and regulations as the director
deems necessary to implement the provisions of P.L. ,
c. (C. )
(pending before the Legislature as this bill).� Thereafter, the director shall
amend, adopt, or readopt any regulations issued pursuant to this subsection in
accordance with the requirements of the "Administrative Procedure Act,"
P.L.1968, c.410 (C.52:14B-1 et seq.).
���� 5.��� There is appropriated
from the General Fund to the New Jersey Economic Development Authority the sum
of $1,000,000 to support the costs of administering the grant program
established pursuant to P.L. ,
c. (C. )
(pending before the Legislature as this bill).
���� 6.��� This act shall take
effect immediately.
STATEMENT
���� This bill requires the New
Jersey Economic Development Authority (EDA) to establish and administer a grant
program to provide financial assistance to reimburse retail business
establishments for the cost of any increased business expenses incurred due to
a public highway project.� The bill also provides for a 50 percent exemption to
the sales and use tax in impacted municipalities.
Definitions
���� The bill defines �business
expenses� as the costs incurred by a retail business establishment that are
necessary for the day-to-day operation of the retail business establishment.�
Business expenses may include, during a relief period, lost revenues, including,
but not limited to, profit loss due to the public highway project.
���� The bill defines "retail
business establishment" as a small business that maintains a fixed
permanent location where goods are exhibited or services are offered, on-site
or off-site, on an appointment or walk-in basis.� A retail business establishment's
offered services may include, but are not limited to, charter boat services.
���� The bill defines
"impacted construction zone" as any area immediately surrounding a
public highway project, within which area the occurrence of the public highway
project impedes or blocks the normal and reasonable flow of traffic or
otherwise restricts access to business establishments located within the area.
���� The bill defines "relief
period" to mean the period of time between the date on which a public
highway project commences and the date on which the project concludes.
���� "Public highway project"
means any infrastructure project that involves the construction, improvement,
or maintenance of a State, county, or municipal highway, road, bridge or
street, including, but not limited to, the repair or reconstruction of any
highway, road, bridge, or street that has suffered serious damage as a result
of a natural disaster or catastrophic failure from any external cause.
���� The bill defines
"impacted municipality" as any municipality in which an ongoing
public highway project is located.
Grant Program
���� Under the bill, the grant
program is intended to reimburse a retail business establishment operating
within an impacted construction zone for any increase in business expenses
incurred during a relief period.
���� The bill requires an
application for a grant to include:� (1) evidence that an applicant is a retail
business establishment that is qualified under the grant program; (2)
documentation of the business expenses regularly incurred by the applicant
prior to the relief period; (3) documentation of the increased business
expenses incurred by the applicant during the relief period as a direct result
of the public highway project; and (4) any other information or documentation
the EDA deems necessary.� An applicant�s documentation of business expenses
prior to and during the relief period, respectively, is required to demonstrate
the business expenses incurred by the applicant for an equal number of business
days.
���� The bill directs the EDA to
review and approve applications for the grant program on a rolling basis,
subject to the availability of funds for the program.� Upon the approval of an
application, the grant issued to an approved applicant is required to be in an
amount equal to the difference between:� (1) the increased business expenses
incurred by the applicant during the relief period as a direct result of the
public highway project; and (2) the business expenses regularly incurred by the
applicant prior to the relief period.� These amounts are to represent the
business expenses for an equal number of days during which an applicant
incurred business expenses.
���� To assist the authority in the
review of applications under the program, the bill requires the Commissioner of
Transportation to notify the EDA of the commencement or completion of public
highway projects.� The Commissioner of Transportation is also required to
notify the EDA of each ongoing public highway project within the State within
30 days after the bill�s effective date.
���� The bill appropriates $1
million from the General Fund to the EDA to support the costs of administering
the grant program.
Sales and Use Tax Reduction
���� Under the bill, a seller is
entitled to an exemption to the extent of 50 percent of the tax imposed under
the Sales and Use Tax Act, upon approval by the Director of the Division of
Taxation (director), if the seller operates a retail business establishment
within an impacted municipality during a relief period.� To be entitled to the
exemption, a seller is required to submit an application to the director to
verify that the retail business establishment operates within an impacted municipality.
���� Upon the commencement or
completion of a public highway project, the bill requires the Commissioner of
Transportation (commissioner) to provide written notice to the director
attesting to the commencement or completion of the project, as applicable.�
Within 30 days following the bill's effective date, the commissioner is
required to provide written notice to the director attesting to each ongoing
public highway project within the State.� Within 30 days of receiving the
written notice from the commissioner concerning the completion of a public
highway project, the bill requires the director to provide written notice to
each seller for which such an exemption has been authorized indicating that the
seller's exemption is terminated, as of the date of receipt of the written
notice.