New Jersey Governor Chris Christie has taken dramatic steps to reform state economic development incentives mirroring recommendations described in a 2008 MassINC policy brief.

Governor Christie’s budget proposal cuts $30 million in inefficient business tax credits, and eliminates the New Jersey film tax credit. From the savings, $22 million are redirected to the state’s Main Streets program, a successful urban revitalization initiative.

As described in MassINC’s policy brief, most economists believe geographically-targeted economic development investments (like the New Jersey Main Streets Program) generate much greater return on taxpayer investment than less focused business tax incentives, which have a limited impact on the location decisions companies make.

The governor’s proposal also consolidates state economic development agencies into a single public-private agency. Through the new organization – New Jersey Partnership for Action – the Christie administration will work hand in hand with business leaders to help market the state to prospective employers.