Two southern New Jersey legislators say a bill signed into law by the governor should encourage more bus companies to provide services to Atlantic City and other tourist locations in the state.

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Under the new law, the corporation business tax will no longer be imposed on out-of-state companies whose only contact with New Jersey is carrying passengers to and from the state.

Assemblymen Nelson Albano and John Burzichelli, the bill's sponsors, said Wednesday that since the state began collecting the tax, some bus operators have suspended or threatened to suspend service to New Jersey.

Budget analysts say the change in law will cost the state up to $750,000 a year in tax revenues.

But Albano and Burzichelli say they expect that to be offset by even more tour bus business.

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