In New Jersey, Governor Christie conditionally vetoed AB939/S1403. The bill, as written, would modify tax expenditure reports produced by the Department of the Treasury during the annual budget process. “Tax expenditures” includes credits such as the film tax credit. Further, the legislation would require additional reports regarding tax expenditures associated with development subsidies primarily used to incentivize large-scale development projects in areas that companies might not otherwise consider. The Governor’s proposed amendments would remove the requirement that evaluations be part of the annual budget process and would modify the items considered in evaluating expenditures.
A conditional veto is one in which the Governor objects to parts of a bill and proposes amendments that would make it acceptable. The bill goes back to the Legislature for consideration of the Governor’s recommendations. If the bill is passed again, it will go to the Governor for signature again. The bill is being reconsidered in the Assembly today.