NJ Passes Powerful Incentive Program Geared at assisting and attracting Large Corporations to Make Investments in the State

IF YOU ARE: A business creating or retaining jobs in New Jersey and making a qualified capital investment at a qualified business facility.

YOU CAN APPLY FOR:  Grants of corporate business tax credits for job creation/retention through the Grow NJ program.

IN THE AMOUNT OF:  Up to $8,000* per each new or retained full time job per year up to 10 years.

* Qualified eligible businesses may receive tax credits of $5,000 per year for a period of ten years for each new or retained full-time job to be located at the qualified business facility as long as the number of full-time jobs meets or exceeds the minimum requirement.  In addition, a bonus award of up to $3,000 per job per year for a period of ten years may be awarded for each new or retained full-time job if the qualfiied eligible business meets additional criteria, such as:

• If the business is in a desirable industry.  This definition will be the same as the definition of desirable industries used for eligibility for new job creation.  These industries include Advanced Manufacturing, Transportation, Logistics and Distribution, Life Sciences, Technology, Health, and Finance.
• If the business locates or relocates to a location within a qualified incentive area adjacent to or within one-half a mile or short-distance-shuttle service of a public transit facility
• If the business creates jobs using full-time employees in eligible positions whose annual salaries, according to the Department of Labor and Workforce Development, are greater than the average full-time salary in NJ; and
• Is locating to a project site that is or has been negatively impacted by the approval of a qualified business facility under the Urban Transit Hub Tax Credit Program. 

Applicants will be eligible for a $1,000 bonus for each criterion met up to the maximum of $3,000 per job.

BENEFITS:  The Grow NJ program helps companies preserve and create jobs, expand operations, and reinvest in the State of New Jersey.

ELIGIBILITY: In order to qualify for consideration for Grow NJ, a company must:

• Make capital investments of at least $20 million at a qualified business facility at which it will employ at least 100 full-time employees in retained full-time jobs, or create at least 100 new full-time jobs in an industry deemed by the EDA to have significant impact on the State economy. 
• Locate the project in a Qualified Incentive Area which is currently defined as:
  
  • Planning Area 1 (Metropolitan), Planning Area 2 (Suburban), and any urban, regional, or town designated center locations under the State Development and Redevelopment Plan;

  • Former military bases closed under the federal Base Closure and Realignment Act;

  • Vacant commercial office, laboratory, or industrial properties having over 400,000 square feet for at least one year or impacted by Urban Transit Hub Tax Credit Program approval; or

  • Areas “targeted for development” in the New Jersey Meadowlands, Highlands, and Pinelands, as specified in the acts establishing these areas.

• Demonstrate that the award of the tax credit is a "material factor" in the company's decision to create or retain the minimum number of full-time jobs.  Applicants must not have signed a lease, entered into a purchase contract, or otherwise committed to a site in New Jersey that will host the relocation project prior to receiving EDA Board Approval.
• Demonstrate that the capital investment and the resultant creation of eligible positions will yield a net positive benefit of at least 110 percent of the requested tax credit amount 
• Within six months following the date of application approval by the EDA, each approved business must submit progress information indicating that the business has site plan approval, committed financing for and site control of the qualified business facility. Unless otherwise determined by EDA in its sole discretion, EDA's approval of the tax credits shall expire if the progress information is not received within six months of the date of application approval. 
• Enter into any construction contracts associated with the project using "prevailing wage" labor rates and affirmative action requirements.

In addition, please note that the total amount of credits is limited to $40 million and cannot exceed the certified capital investment of the business.  The credits that can be applied against a single company's tax liability in a fiscal year may not exceed $4 million.

FEES**: 

• Application Fee: $5,000
• Commitment fee: 0.5% of the approved tax credit, due at Board approval, not to exceed $200,000 
• Closing: 0.5% of the approved credit, due at closing, not to exceed $200,000
• Annual Review Fee: $2,500
• Tax Credit Transfer Certificate Fee: $2,500

Division of Taxation Tax Clearance Certificate Application Processing Fee: $75 for standard processing; $200 for expedited processing (response within three business days) 

**All fees are non-refundable.