Incentive Programs - Grow NJ Assistance Program

Updated 10/24/2014 

IF YOU ARE:

A business creating or retaining jobs and making a capital investment in a qualified incentive area.

YOU CAN APPLY FOR:

Grants of corporate business and insurance premiums tax credits for job creation/retention through the Grow NJ program.

ELIGIBILITY:

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

1.  Locate the project in a Qualified Incentive Area, which is currently defined as one of the following.  (See the Mapping Tool link at the bottom of this page for assistance in determining whether the
     project address is located in an eligible area.)

  • Urban Transit Hub Municipality 
  • Garden State Growth Zones (GSGZ) - The four New Jersey cities with the lowest median family income based on the 2009 American Community Survey from the US Census (Camden / Trenton / Paterson / Passaic); ); and a municipality which contains a Tourism District as established pursuant to section 5 of P.L.2011, c.18 (C.5:12-219) and regulated by the Casino Reinvestment Development Authority (Atlantic City).
  • Projects classified as “Mega Projects”
    • Logistics, manufacturing, energy, defense, or maritime businesses in a port district or businesses in the aviation industry located in an aviation district with:
      • Capital investment of at least $20 million and 250 jobs created or retained; or
      • 1,000 jobs created or retained; or;
    • A qualified business facility located in an urban transit hub, having a capital investment in excess of $50 million and at which more than 250 full time employees of a business are created or retained; or
    • A project located in an existing area designated in need of redevelopment within Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Ocean or Salem counties having a capital investment in excess of $20 million, and at which more than 150 full-time employees are created or retained.
  • Distressed municipality (see Definitions below for more information)
  • Projects in a priority area (see Definitions below for more information)
  • Other eligible areas not located within a distressed municipality or priority area, including an Aviation District; Planning Area 3; certain portions of Meadowlands, Pinelands and Highlands; and certain portions of Planning Areas 4A, 4B & 5.

2.  Meet or exceed the minimum employment and capital investment requirements, as outlined below:

Minimum Full-Time Employment Requirements

 Industry  New / Retained Full-time Jobs
 Tech start ups and manufacturing businesses  10 / 25
 Other targeted Industries  25 / 35
 All other businesses/industries  35 / 50

Minimum employment numbers are reduced to 3/4 (rounded down) of the number listed above in GSGZs and in eight South Jersey counties: Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Ocean and Salem.

Minimum Capital Investment Requirements

 Project Type  ($/Square Foot of Gross Leasable Area)
 Industrial, Warehousing, Logistics and R&D - Rehabilitation Projects  $20
 Industrial, Warehousing, Logistics and R&D - New Construction Projects  $60
 Other – Rehabilitation Projects  $40
 Other – New Construction Projects  $120

Minimum capital investment amounts are reduced to 2/3 (rounded down) of the amount listed above in GSGZs and in eight South Jersey counties: Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Ocean and Salem. 

3.  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 unless the project is located in a project in a 
GSGZ that qualifies under the Municipal Rehabilitation and Economic Recovery Act (MRERA) (Camden), or which contains a Tourism District established by section 5 of P.L.2011, c.18 (C.5:12-219) and regulated by the Casino Reinvestment Development Authority (Atlantic City), in which case, demonstrate that the award of tax credits is a material factor in 
the business decision to make a capital investment and locate in such GSGZ.

4.  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, or, for a project in 
a GSGZ that qualifies under the MRERA (Camden), 100 percent of the requested tax credit.

5.  All projects must meet Green Building Requirements.  For details on the background to these program requirements, please click here.  For the Green Building Manual for this program, please visit http://greenmanual.rutgers.edu/. For questions regarding these requirements, please contact your EDA Business Development Officer.

6.  Within twelve 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 twelve months of the date of application approval.

7.  Enter into any construction contracts associated with the project using "prevailing wage" labor rates and affirmative action requirements.

8.  Maintain the project and related employment for 1.5 times the period in which the business receives the tax credit.

9.  Businesses receiving tax credits must maintain a minimum of 80% of its full-time workforce from the last tax period prior to the grant approval.  If the full-time workforce falls below 80%, the 
business will forfeit its tax credit amount for that tax period and each subsequent tax period until the full-time workforce is restored back to the minimum level and documentation reflecting such 
has been reviewed and approved by the EDA Board.  If, in any tax period, the number of full-time employees employed by the business at the qualified business facility located within a qualified incentive area drops below 80 percent of the number of new and retained full-time jobs specified in the incentive agreement, then the business shall forfeit its credit amount for that tax period and each subsequent tax period, until the first tax period for which documentation demonstrating the restoration of  the number of full-time employees employed by the business at the qualified business facility to 80 percent of the number of jobs specified in the incentive agreement.

10.  For projects with outstanding commitments under other EDA incentive programs, the applicant may unwind their current commitment in certain circumstances and under certain conditions to 
take advantage of the Grow NJ Program.  For questions regarding this process, please contact your EDA Business Development Officer.

TAX CREDIT AMOUNTS AVAILABLE: 

Qualified eligible businesses receive tax credits per job, per year for a period of up to ten years for each new or retained full-time job to be located at the qualified business facility.  The maximum amount of the tax credits to be applied by the business annually is generally determined as follows: a gross amount per job/per year is obtained by adding all applicable bonuses to the base amount; the gross amount is then subject to a cap. 100% of the gross amount per new job is allowed, whereas (subject to certain exceptions) only 50% of the gross amount per retained job is allowed. Finally, the total amount of annual tax credits is subject to a maximum cap.

 In addition, for each application for tax credits in excess of $4 million annually, the amount of tax credits available to be applied by the business annually shall be the lesser of the permitted statutory maximum amount or an amount determined by the EDA necessary to complete the project, which shall be determined through staff analysis of all locations under consideration by the business and all lease agreements, ownership documents, or substantially similar documentation for the business's current in-State locations and potential out-of State location alternatives.

Base Calculation of Tax Credits

 Project Type

 Base Amount
 Per New or Retained FT Job,
 Per Year

 Gross Amount Cap
 Per New or Retained
 FT Job, Per Year 
 Maximum Cap
 To be Applied by
 the Business Annually
 GSGZ Project  $5,000  $15,000  $30,000,000
($35,000,000 - GSGZ-
Camden)
 Mega Project  $5,000  $15,000  $30,000,000
 Urban Transit Hub
 Municipality
 $5,000  $12,000  $10,000,000
 Distressed
 Municipality
 $4,000  $11,000  $8,000,000
 Priority Area  $3,000  $10,500  $4,000,000
 Not more than 90% of
business withholdings
 Other Eligible Area  $500  $6,000  $2,500,000
Not more than 90% of
business withholdings
 Disaster Recovery
 Project
 $2,000  $2,000  One of the above,
 as applicable.

The available bonuses are listed below:

Bonus Criteria 

 Bonus Type  Bonus Amount Per Job,
 Per Year
 Excess capital investment in industrial site
 for industrial use. (Mega projects or GSGZ
 projects, as defined above
)
 $1,000 - $5,000
 Excess capital investment in industrial site
 for industrial use.  (Excludes mega projects
 and GSGZ projects, as defined above)
 $1,000 - $3,000
 Transit oriented development  $2,000
 Deep poverty pocket or Choice Neighborhood
 Transportation Plan area
 $1,500
 Large numbers of new and retained full-time jobs:
 251 to 400
 401 to 600
 601 to 800
 801 to 1,000
 1,001+
 
 $500
 $750
 $1,000
 $1,250
 $1,500
 Average salary in excess of county's existing average
 or in excess of average for GSGZ
 $250 - $1,500
 Marine terminal project located in a South Jersey
 Port District, but not in a GSGZ
 $1,500
 U.S. headquarters of an auto manufacturer retaining
 400+ employees in the same municipality
 $1,500
 Located in municipality in Atlantic, Burlington, Camden,
 Cape May, Cumberland, Gloucester, Ocean and Salem
 counties with a 2007 MRI Index greater than 465
 $1,000
 Located within a half-mile of any light rail station
 constructed after 9/18/2013
 $1,000

Facility includes a vacant commercial building having over 1,000,000 square feet of office or laboratory space available for occupancy for a period of over one year

 $1,000
 Qualified incubator facility  $500
 Mixed-use development with sufficient moderate income
 housing on site to accommodate 20% of full-time
 employees
 $500
 Business in a targeted industry  $500
 Exceeds LEED “Silver” or completes substantial  $250

A different tax award determination may apply if the project is located in a project in a GSGZ that qualifies under the MRERA (currently Camden) and will create 35 or more jobs and make a capital investment of at least $5 million. If so, please contact your EDA Business Development Officer.

FEES**:
 

  • Application Fee
    • $1,000 ($10 million tax credit or less and 100 or fewer jobs);
    • $2,500 ($10 million tax credit or less and over 100 jobs);
    • $5,000 (all others)
  • Approval Fee: 0.5% of the approved amount with a $500,000 cap.  Projects with annual tax credits of $4,000,000 or less must pay the Approval Fee prior to executing the Incentive Agreement.  Projects with annual tax credits in excess of $4,000,000 must pay the Approval Fee prior to Board approval.
  • Issuance Fee: 0.5% of tax credit amount with a $500,000 cap
  • Servicing Fee: 2% of annual amount with an annual cap of $75,000.
  • Tax Credit Transfer Fee: $2,500
  • Minor Modification Fee:
    • $2,500 ($5 million tax credit annually or less);
    • $5,000 (all others)
  • Major Modification Fee:
    • $7,500 ($5 million tax credit annually or less);
    • $25,000 (all others)
  • Extension Fee:
    • $1,000 (first 6 months);
    • $2,500 (second 6 months)
  • Full amount of direct costs of any analysis by a third party retained by the EDA

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 except for the approval fee due prior to approval, which shall be refunded if the Authority does not approve the tax credit.

Applications for assistance under the Grow NJ Program must be submitted no later June 30, 2019.

Additional terms and conditions pursuant to P.L. 2013, c. 161 apply.

Application
Average Annual Salaries
Definitions
Mapping Tool 
TOD Bus Terminal List