Grow New Jersey: Program offers transferrable corporate income tax credits to companies that create and/or retain jobs. Tax credits are awarded on a per-job basis and can range from a base amount of $500 per job, per year to a base amount of $15,000 per job, per year for a period of 10 years. In addition to the base amount, a business may be eligible for a bonus award based on the project location, wages, and proximity to public transportation. The amount of tax credit awarded will depend on project specific factors including the location, wages, industry sector, amount of capital investment and the number of jobs that are created and/or retained. To qualify, a technology startup company or manufacturer must create at least 10 jobs while a business in one of New Jersey’s targeted industry sectors would need to create at least 25 jobs. All other businesses must create at least 35 new jobs to qualify for the program. To incentivize companies to locate in one of the state’s more economically distressed urban areas (called Garden State Growth Zones or GSGZs) and in South Jersey counties, the program reduces the minimum job creation requirements by one-fourth or 25%.
Economic Redevelopment and Growth (ERG) Program: A developer that can demonstrate that its project requires a subsidy in order to close a project financing gap may apply for an incentive grant in an amount up to 75% of the annual incremental tax revenues generated by the development project over a 20-year period. If the project is located within a Garden State Growth Zone, 85% of the projected annual incremental revenues may be pledged toward the award. Commercial projects may receive an incentive grant reimbursement of up to 20-40% of total project cost, depending on where the project is located and whether or not it meets other economic development criteria, such as proximity to public transit. Residential projects that do not generate tax revenues can qualify for transferrable tax credits that can be sold and/or assigned to lenders for project financing. The tax credit can be up to 20-30% of total project cost and is given out over a 10-year term. This is a discretionary program.
Urban Enterprise Zone (UEZ) Sales Tax Exemption: Businesses that sign new leases or purchase property in one of the 32 communities in New Jersey with Urban Enterprise Zones may qualify for a state sales tax exemption on qualified purchases.
Last updated: April 2016