Honeywell HQ Leaving NJ, Even Though it Got $40M Tax Break
MORRIS PLAINS — Two state Senators are blaming Gov. Phil Murphy for creating an "anti-business agenda" that caused Honeywell to move its global headquarters to North Carolina after 50 years in Morris County.
The company, which received a $40 million tax credit from the Christie administration in 2013 to stay in Morris Plains, is getting a another tax break to move its global headquarters to Charlotte. About 150 to 200 New Jersey-based senior management positions will transfer south by September 2019.
"Our decision does not reflect any issues with the quality of our experience in New Jersey," CEO Darius Adamczyk said in a statement. "We value the strong relationship that we have built with the state of New Jersey and with Governor Murphy. New Jersey will remain a substantial employment center for us."
Republican state Sen. Joe Pennacchio, whose district includes Morris Plains, faulted Murphy for focusing on "his expensive liberal wish list" and "bad-for-business policies like the recent CBT (corporate business tax) increase and Murphy’s endless tax hikes."
"We have a highly-educated and eager workforce. What we lack is leadership in the executive branch. It’s time for the governor to stop taxing and regulating businesses out of state. Murphy must stop placing pot, dreams of a sanctuary state, and salting for imaginary storms above the needs of our families,” Pennacchio said in a statement.
Fellow state Sen. Anthony Bucco said in the same statement "New Jersey is the least business-friendly state in America."
Approximately 1,000 employees will remain in New Jersey across the company's six locations in the state, including about 800 employees at Honeywell's Morris Plains offices.
Murphy said while he's not happy when any jobs leave New Jersey he appreciated Honeywell's "continued commitment and confidence in New Jersey."
"By maintaining such a strong foothold here, Honeywell is reaffirming their commitment to being a part of New Jersey’s future. That speaks volumes to our state’s strength, resilience, and value proposition," Murphy said.
On Thursday, North Carolina legislators expanded tax breaks for high-paying jobs, hurrying through legislation that more than doubles the per-job annual cap on tax breaks to $16,000 in a move aimed at corporations that move big-salaried jobs to the state.
North Carolina Gov. Roy Cooper's office noted Honeywell's move was contingent on the governor signing the legislation as well as approval of a state package of tax breaks, both expected Monday.
Central to the company's relocation decision was its recognition that in order to incorporate the interconnected, digitally driven features of the business future, Honeywell needed to be located in places appealing to attracting a millennial workforce, an economic development official familiar with the relocation discussions told The Associated Press. The official spoke on condition of anonymity, citing confidentiality in business recruitment.
Material from the Associated Press was used in this report.