The New Jersey Business and Industry Association (NJBIA) testified before the Assembly Budget Committee on Mar. 18, commending Governor Mikie Sherrill’s efforts to control spending in the proposed fiscal year 2027 state budget while raising concerns about certain tax policy changes that could affect businesses.
The testimony is significant as it highlights how business groups are responding to the $60.7 billion spending plan for the fiscal year beginning July 1, which includes regulatory reforms and new revenue measures. The NJBIA represents employers across various sectors and serves as the nation’s largest statewide employer association, according to the official website.
Christopher Emigholz, NJBIA Chief Government Affairs Officer, said the organization supports the governor’s focus on regulatory reforms, government efficiency, and pro-business investments. He also welcomed her commitment to preventing last-minute spending items from being added by legislators. “We need to take a hard look at the add-ons we make to the budget, and we need to take a hard look at the programs we already have – and Governor Sherrill has started us in that direction,” Emigholz told the committee. He added that responsible budgeting should allow New Jersey to sunset its corporate transit fee in two years as scheduled.
However, Emigholz expressed concern over three proposed revenue raisers: eliminating the alternative business calculation (ABC) deduction for pass-through businesses with gross income of $1 million or more; imposing a temporary $1 million cap on net operating loss (NOL) deductions for corporate taxpayers; and levying assessments on employers whose workers use government-funded health benefits. Regarding the ABC deduction change, he said: “A gas station might have a couple employees. They’re hitting gross income of a million dollars in a hurry.” He urged lawmakers to raise rather than eliminate this threshold for small businesses.
On NOL caps, Emigholz said: “NOL policies encourage investments in the state, yet a pullback of this policy, even temporarily, shows corporate America that New Jersey is not a safe and predictable business environment.” He recommended extending carry-forward provisions if caps are enacted so businesses can better plan their taxes.
Emigholz also criticized plans for employer assessments related to Medicaid coverage: “How can an employer reasonably be penalized for not providing health benefits to an employee that only works a few hours per week or just a few weeks per year?” He warned such policies could discourage hiring part-time or low-income workers.
Despite these concerns, Emigholz praised several pro-business incentives in the budget proposal—such as funding regulatory reforms—and called for restored support for manufacturing programs like NJMEP and MVP. “Manufacturing investment is critical,” he said.
The NJBIA advances competitive excellence among its members while delivering essential information and services according to its official website. Michele Siekerka serves as president and chief executive officer of NJBIA. The association facilitates partnerships among businesses, government entities, and academic institutions throughout New Jersey while offering advocacy and cost-saving benefits to support business prosperity.
