For Comment: Revisions to NJEDA’s Economic Impact Model
The EDA is accepting comments on proposed changes to its Economic Impact Model, approved by the Board of the EDA on December 13, 2016 and subject to the Governor’s 10-day veto period.
The model was developed by JLL in 2012 to help measure the likely impact of a given development to the State. The EDA utilizes the model to assess economic outputs, impacts, likely job creation and taxes to be generated for applications submitted under the Grow New Jersey (Grow NJ) and Economic Redevelopment and Growth (ERG) programs. The EDA, in collaboration with JLL, has recommended revisions to the model in the following areas:
- Update the rate of inflation assumption
- Treatment of direct and indirect benefits beyond applicant commitment period
- Potential recoupment related to projects which do not comply with their agreed to extended commitment periods
- UEZ impact
- Renovation costs
- Implementation of NJ’s Gross Income Tax progressive scale rates
- New Jersey Earned Income Tax Credit
- Corporate Status/Corporation Business Tax Policy
- Updated Sales Tax rate
Click here to view the full Board memo, detailing the revisions listed above.
Click here to view the June 2012 overview of the NJEDA Economic Impact Model.
The revised model will become effective on February 16, 2017. All ERG and Grow applications received on or after this date will be reviewed utilizing the revised model. ERG and Grow applications currently in-house or received prior to February 16, 2017 will be reviewed utilizing the current model. Should any applications approved for an award prior to February 16, 2017 require a modification that results in a 25% or more change in the project, the project will be reevaluated using the net benefit model effective at the time of original approval; however, all modification requests approved after the June 13, 2017 EDA Board meeting will be reevaluated utilizing the revised model.
Comments must be received by 5:00 p.m. on Friday, January 6 and should be mailed to:
Maureen Hassett
Senior Vice President
NJEDA
P.O. Box 990
Trenton, NJ 08625-0990
