Sen. Pennacchio: Pay Back Landlords Who Waive Rent For Businesses

ESSEX COUNTY, NJ — There’s a way to help prevent a wave of commercial vacancies during the coronavirus crisis, a New Jersey state senator says: pay back landlords who give their business tenants a temporary break on the rent.

On Monday, Sen. Joe Pennacchio of the 26th District announced he plans to introduce legislation to help local businesses survive the coronavirus shutdown.

Pennacchio, a Republican, represents Butler, Fairfield, Jefferson, Kinnelon, Lincoln Park, Montville, Morris Plains, North Caldwell, Parsippany-Troy Hills, Rockaway Twp., Verona, West Caldwell and West Milford.

Pennacchio said his plan would allow New Jersey landlords to waive all or part of three months rent to businesses, up to $15,000. In return, the landlord would be eligible for a state tax credit for one-third of the forgiven rent.

The tax credit program would be voluntary, he said.

The program can be initiated without the need to create any new bureaucratic layers, and it may be eligible for federal coronavirus stimulus aid, the senator stated.

“This would be a life preserver for businesses that are going under,” Pennacchio said. “We will reap triple benefits. If the state commits $100 million, business will get $300 million in relief that will save tax-paying companies and the jobs of citizens who already struggle to pay New Jersey outrageous tax rates.”

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Pennacchio said the coronavirus has stripped companies of the ability to operate their business or adapt to changing market conditions.

“Hardworking men and women who are used to doing everything possible to protect their business and their employees’ jobs find themselves powerless in a marketplace shut down caused by the virus,” Pennacchio charged. “Without warning or any time to prepare, businesses have been closed down for more than a month and most have no way to make money under current restrictions.”

“Tax credits will help landlords who may otherwise be faced with foreclosure,” Pennacchio said. “I think there’s a lot of landlords who want to do the right thing. My legislation will help reduce the number of businesses defaulting on leases and prevent a glut of vacancies created in the aftermath of the coronavirus outbreak.”

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