Categories
redevelopment sustainability

Baysave Recognized as a New Jersey Sustainable Business

Small businesses across New Jersey are starting to save money, share their successes and inspire other businesses by implementing sustainable business best practices. Joining this list of small businesses, Baysave located in Millville, New Jersey, became one of the first businesses in the state to be recognized as a New Jersey Sustainable Business.

In August of 2014, the New Jersey Small Business Development Centers (NJSBDC) launched the New Jersey Sustainable Business Registry. The registry is an Internet site where businesses that have implemented sustainable business practices can register their achievements and be recognized.

Baysave first achieved recognition for work stabilizing the bayshore community of Money Island. Their living shoreline stabilization efforts resulted in the reduction of erosion that resulted in substantial savings of dry land. Recent efforts include coordination of government programs and commercial fishing operations to promote economic stability.

Baysave’s business listing and programming records are available at http://registry.njsbdc.com/business-profile/459/483/baysave .

For more information about the registry visit: http://registry.njsbdc.com/
For more information about Baysave Association visit: www.baysave.org

Categories
aquaculture investment redevelopment sustainable redevelopment

Qualified Opportunity Zones vs. Qualified Small Business Stock at the bayshore

Community redevelopment or industry revitalization plans historically rely heavily on tax incentives to attract investment. Our local fisheries and aquaculture industries are likely to require large commitments of investment capital over the coming decades. A government program that abates taxes or exempts gains from taxation can make a project significantly more interesting to investors. Such programs can exist at the local, county, state and federal government level. This blog post focuses on the two most prominent options available at the federal level for the revitalization of the New Jersey bayshore. This blog does not attempt to explain each option, but rather focuses on the differences between them and briefly lists how I see each of them contributing to the bayshore community’s long term revitalization.

The first federal incentive programs are the Qualified Opportunity Zone authorized as part of the Tax Cuts and Jobs Act. This program is geographically restricted to a few blocks in downtown Millville and large parts of Bridgeton. Advisers see this program as most attractive to larger investors.  This program could primarily help us with commercial real estate projects in those locations, especially equipment manufacturing and seafood processing, and aquaculture equipment financing for the region. This is the investment format being considered by some institutional investors. More information is available on this new web site.

The second program is Qualified Small Business Stock. This has been around longer as Section 1202 of the Internal Revenue Code but its attractiveness is strengthened by a series of recent tax changes. Investments may provide immediate tax benefits. The long term attraction is that smaller investors can achieve tax-free gains of up to $10 million (or more) by committing to the investment for at least five years. This is the business format that will be used by Nantuxent Corporation for the revitalization of commercial fishing and aquaculture at Money Island.

There are risks with either program. The first risk is that the investment may not achieve the gains expected. The investments could lose money. The second is that the investment might not be liquid at the time the investor wants to cash in. The third risk is that the expected tax result may not be achieved either because tax laws change or because the management of the investment did not meet the legal requirements of the incentive program.

I am happy to discuss how either option might fit into your investment plans.