New program encourages company to maintain facility in downtown business district
Trenton, N.J. (Oct. 28, 2008) – The State of New Jersey today approved the first project to qualify for assistance under the new Urban Transit Hub Tax Credit, a program created earlier this year by Governor Jon S. Corzine as part of an effort to encourage business development, capital investment and employment in designated communities near commuter rail stations.
The New Jersey Economic Development Authority (EDA), which administers the program, approved Verizon New Jersey, Inc. to receive tax credits estimated at just over $2 million per year for 10 years based on its plans to lease approximately 140,000 square feet of space at 540 Broad St., Newark, from Accordia Realty Ventures and make a capital investment of more than $25 million in the project. Accordia will purchase the nearly 428,000-square-foot Class A office building from Verizon and offer all the space for lease.
“This new program is an important addition to the financial tools that we have available in New Jersey to spur urban redevelopment and attract and retain jobs in key urban areas of our state,” Governor Corzine said. “Just as significant, this project will add almost 300,000 square feet of office space to a tight Newark office market and enable the city to attract new businesses to its downtown.”
Added EDA Chief Executive Officer Caren S. Franzini. “The Urban Transit Hub Tax Credit Program augments the broad portfolio of programs available in New Jersey that support smart-growth redevelopment, urban revitalization and the creation and maintenance of important urban jobs. It is particularly meaningful in this case and in this tight economic environment because it will act as a stimulus to bring other businesses to Newark.”
The Urban Transit Hub Tax Credit Program provides tax credits equal to from 80 percent to 100 percent of qualified capital investments made in a project within an eight-year period. Projects must be located within one-half mile of New Jersey Transit, Port Authority Transit Corporation (PATCO) or Port Authority Transit – Hudson (PATH) stations in nine urban municipalities – Camden, East Orange, Elizabeth, Hoboken, Jersey City, Newark, New Brunswick, Paterson and Trenton. Entities receiving tax credits may apply 10 percent of the total credit amount per year over a 10-year period against their corporate business tax, insurance premiums tax or gross income tax liability.
To qualify for this tax credit program, businesses must make a minimum $75-million capital investment in a single business facility where no less than 250 employees must work full-time. Tenants also may qualify if they occupy space that represents at least $25 million of the capital investment in the facility and employ at least 250 full-time workers at that location.
Verizon plans to make total capital improvements exceeding the $25-million threshold and employ more than 700 people at the location, which is within one-half mile of a Broad Street rail station. Accordia’s capital investment is also expected to surpass the minimum $75-million requirement.
Verizon New Jersey is a subsidiary of Verizon Communications, Inc, which provides wireline and wireless communications services and technology globally. Verizon and its affiliates employ more than 8,000 people in nearly 300 New Jersey locations.
To learn more about the products and service available in New Jersey to assist redevelopment projects, contact the Business Call Center at 1-(866) 534-7789. For more information about doing business in New Jersey, visit www.NewJerseyBusiness.gov.
The EDA is an independent, self-sustaining state financing and development agency that works to promote economic growth, job creation and the revitalization of New Jersey’s communities with financing assistance, technical support and real estate development activities.