New Jersey Economic Opportunity Act Paves Way for More Than 3,600 New and Retained Jobs
TRENTON, N.J. (May 16, 2014) – Illustrating the significant impact of the New Jersey Economic Opportunity Act of 2013, the Christie Administration today announced that JPMorgan Chase Bank has committed to remain and grow in New Jersey, resulting in a total net benefit to the State of $1.1 billion. Supported under the enhanced Grow New Jersey Assistance (Grow NJ) Program, the project will result in the creation of 1,000 new jobs and the retention of more than 2,600 jobs in Jersey City.
“JPMorgan Chase Bank’s decision to choose New Jersey exemplifies our enhanced ability to compete in the regional, national and global economy as a result of the Economic Opportunity Act,” said Michele Brown, Chief Executive Officer of the New Jersey Economic Development Authority (EDA). “With a more compelling economic toolkit and the ongoing efforts of the Partnership for Action, New Jersey is in a prime position to attract industry leaders like JPMorgan Chase.”
JPMorgan Chase is a leading global financial services firm with operations worldwide. The company had been evaluating the location of its expanding regional technology and operations hub and considered locations in Ohio, Delaware and New Jersey. With the EDA Board’s approval today of a Grow NJ award, the company announced its decision to remain and expand in Jersey City, increasing its presence to over one million square feet of space. In addition to the creation and retention of over 3,600 jobs, JPMorgan Chase expects to invest more than $76 million.
“Thanks to the Christie Administration, Grow NJ made it possible for our firm to purchase our Newport Operations Center in Jersey City, which will create new jobs in New Jersey,” said JPMorgan Chase Chief Operating Officer Matt Zames. “We’ve invested in this community for nearly two centuries, and this agreement only deepens that commitment for the long term.”
Signed into law by Governor Chris Christie in September 2013, the Economic Opportunity Act streamlined New Jersey’s five legacy incentive programs into two powerful offerings: Grow NJ, which is now the state’s main job creation and retention incentive program, and the Economic Redevelopment and Growth (ERG) Program, now New Jersey’s sole developer incentive program. Grow NJ provides tax credits ranging from $500 to $5,000 per job, per year, with bonus credits ranging from $250 to $3,000 per job, per year if the project meets certain requirements. The highest levels of bonus credits are for “mega projects” and projects located in Garden State Growth Zones (Camden, Trenton, Passaic and Paterson) and eight South Jersey counties, and designated Urban Transit Hubs.
JPMorgan Chase qualified as a “mega project” under the statute and was eligible for a base award of $5,000 per employee. The company also received bonus increases for: transit oriented development, jobs with high salaries, a large number of new/retained full time jobs, and being in the targeted industry of finance.
In accordance with the statute, the EDA conducts a comprehensive net benefit analysis to ensure that Grow NJ and commercial ERG projects will result in a net positive impact to New Jersey. Additionally, the programs are performance-based, requiring projects to first generate new tax revenue, complete capital investments, and/or hire or retain employees to receive approved benefits.
The EDA is part of the state’s results-driven Partnership for Action. Created by Governor Christie and led by Lt. Governor Guadagno, the Partnership is the hub for all economic development activity in New Jersey and is comprised of four interconnected and highly focused organizational elements: Choose New Jersey, the Business Action Center, the Office of the Secretary of Higher Education and the EDA.
To learn more about opportunities for business growth throughout New Jersey, visit the state's business portal at www.NewJerseyBusiness.gov.