States across the country, including New York, are finding new and innovative ways to lure corporations, entrepreneurs, investors and developers, something the Garden State isn't doing enough of according to state business leaders.

Pile of money (iStock)

"This can be done through tax policy and it can be done through incentives, or it can be done through both," David Brogan, a first vice president with the New Jersey Business and Industry Association, recently told the Assembly Commerce and Economic Development Committee.  "NJBIA believes that a combination is the best solution."

Brogan understands that New Jersey is still struggling through difficult economic times, so he asked lawmakers to consider tax cuts when things improve.  But he said lawmakers to explore the possibility of incentives now.

"Tax policy and incentives are inextricably linked because if you have a competitive tax system in your state there's less of a need for incentives, but if you have a high tax state like New Jersey there is a greater need for incentives," explained Brogan. "The last thing we'd ask you to consider is tax cuts if and when the state has the revenues to support them."

The New Jersey Legislature and Gov. Chris Christie have taken solid steps in the right direction, acknowledged Brogan. He lauded the process of moving from a three factor formula (property, payroll and sales) for determining a company's in-state tax liability to a single sales factor, which no longer punishes companies with a large in-state presence.

"As we know, the governor will be giving his budget address at the end of this month," Brogan told the panel. "This is the time to be thinking about tax policy, incentives, and policy changes that make New Jersey a more attractive place to do business."