In October of 2018, New Jersey Governor Phil Murphy released his economic development plan which, as its title suggests, intends to rebrand New Jersey as the “State of Innovation.” The plan is comprised of four umbrella initiatives intended to stimulate the growth of cutting-edge industries in the state and overhaul many of the state’s economic development incentive programs. Murphy’s plan also addresses the state’s existing tax incentive framework in hopes of creating sustainable, targeted yet scaled-down incentive programs that work in tandem with his proposed initiatives and further his policies.

So long as he gets the green light from the Democratic-controlled legislature, by 2025, Murphy expects his proposals will: (1) add/create 300,000 new jobs; (2) increase median wage growth by 4 percent or $1,500 on average; (3) double the current rate of venture capital investment to $645 million; (4) add 40,000 more women and minority workers in STEM related jobs; and (5) increase women and minorities’ average annual wage by at least $15,000. This article provides a brief overview of Murphy’s proposed initiatives, highlights some anticipated changes to the state’s tax incentive framework, and discusses a few obstacles this administration must address in implementing same.

Four Pillars of Murphy’s Economic Development Plan

  1. NJ Accelerate