TRENTON, N.J. (December 23, 2022) – Today, the New Jersey Economic Development Authority (NJEDA) released information on the state’s Food Desert Relief Tax Credit Program and announced dates for public listening sessions. Established by the New Jersey Economic Recovery Act of 2020 (ERA), the Food Desert Relief Act (FDRA) addresses the food security needs of communities across New Jersey by providing up to $40 million per year in tax credits, loans, grants, and/or technical assistance to increase access to nutritious foods and develop new approaches to alleviate food deserts. The NJEDA is seeking public feedback on the first program under the FDRA, the Food Desert Relief Tax Credit Program.

The Food Desert Relief Tax Credit program encourages sustainability of supermarkets for a lasting impact on communities. To be eligible, applicants must demonstrate that with the tax credit award the supermarket will remain open for business for at least seven years. Awards of up to 40 percent of project costs are available for development of the first new or substantially rehabilitated supermarket in a designated Food Desert Community (FDC), while the second supermarket in an FDC can be eligible for an award of up to 20 percent of project costs. Awards will also be available to fill a shortfall in initial operating income, including a reasonable operating profit.

The NJEDA, in collaboration with the Departments of Community Affairs and Agriculture, previously designated 50 FDCs across the state, approved by the NJEDA board in February 2022. These FDCs will be targeted by a variety of programs to increase access to affordable, nutritious food through funding for supermarkets, small- and mid-size retailers, and other entities that support food security initiatives. The program that will be the focus of the upcoming public listening sessions is the Food Desert Relief Tax Credit Program, which aims to support the development and initial operations of new supermarkets and grocery stores in these communities.

Members of the public are encouraged to review the preliminary information and submit written feedback through an online form available on the Economic Recovery Act website. The NJEDA will also be hosting two listening sessions for public input on the proposed information for the Food Desert Relief Tax Credit Program. There will be an in-depth presentation by NJEDA representatives, with time allowed for questions, comments, and feedback. Members of the public will have the opportunity to offer comment on the information presented.

The virtual sessions will be held:

Those unable to attend these sessions and those that wish to submit written feedback will be able to submit public comment until January 9th. To provide feedback on the Food Desert Relief Tax Credit Program online click here.

Members of the media interested in attending the session or submitting questions are asked to email media@njeda.com. 

In addition to the Food Desert Relief Tax Credit program, the ERA creates a suite of programs that includes tax credits to incentivize job creation, new construction, and historic property reinvestment; and financial resources for small businesses. The NJEDA will continue to engage the public as new programs and rules are developed.

For more information and to provide written input on the design and implementation of Economic Recovery Act programs, visit https://www.njeda.gov/economicrecoveryact/.

The Food Desert Tax Credit Program is part of a broader portfolio of work focused on food security, including the Food Security Planning Grant and Sustain & Serve NJ. For more information on the Food Desert Relief Act and Food Desert Community designations, visit https://www.njeda.gov/food-desert-relief-program/.

About the NJEDA

The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness. NJEDA is developing the Wind port on behalf of the State.

To learn more about NJEDA resources for businesses call NJEDA Customer Care at 844-965-1125 or visit https://www.njeda.gov and follow @NewJerseyEDA on Facebook, Twitter, Instagram, and LinkedIn.

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TRENTON, N.J. (September 10, 2021) – The New Jersey Economic Development Authority (NJEDA) today released for public feedback a draft rule proposal for the Aspire Program, as established under the New Jersey Economic Recovery Act of 2020 (ERA). The Aspire Program is a gap financing tool to support commercial, mixed use, and residential real estate development projects.

Members of the public are encouraged to review the preliminary rules and submit written feedback through an online form available on the Economic Recovery Act website. The NJEDA will also be hosting two listening sessions for public input on the draft rules.

“As we recover from the COVID-19 pandemic, it is crucial that we support new investments in our communities,” said NJEDA Chief Executive Officer Tim Sullivan. “The Aspire Program will facilitate equitable, community-supported residential and commercial development projects that make our communities vibrant live, work, play destinations that better serve residents and help attract successful companies and top-notch talent.”

Draft Aspire Program rules are available now for review at https://www.njeda.gov/economicrecoveryact/program-specific-feedback/.

Members of the public can also provide input during the NJEDA’s public listening sessions, which are scheduled for the following times:

  • Friday, September 17th at 3:00 p.m.
  • Monday, September 20th at 3:00 p.m.

Members of the public can access the listening sessions at https://us02web.zoom.us/j/83755290991?pwd=M1lzWWdaaGwrdi85MDhuRk4vUVdRUT09; Passcode: Aspire.

Members of the media interested in attending the session or submitting questions are asked to email media@njeda.com.  

In addition to the Aspire Program, the ERA creates a suite of programs that includes tax credits to incentivize job creation, new construction, and revitalization of brownfields and historic properties; financial resources for small businesses; support for new supermarkets and healthy food retailers in food desert communities; new funding opportunities for early-stage companies in New Jersey; and support for the growing film and digital media industry. The NJEDA will continue to engage the public as new programs and rules are developed.

For more information and to provide written input on the design and implementation of Economic Recovery Act programs, visit https://www.njeda.gov/economicrecoveryact/.

About the New Jersey Economic Development Authority

The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.

To learn more about NJEDA resources for businesses call NJEDA Customer Care at 609-858-6767 or visit https://www.njeda.gov and follow @NewJerseyEDA on Facebook, Twitter, Instagram, and LinkedIn.

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TRENTON, N.J. (August 11, 2021) – The New Jersey Economic Development Authority (NJEDA) Board today approved rules for the Main Street Recovery Program. Created under the Economic Recovery Act of 2020 (ERA), the Main Street Recovery Program is a $100 million small business support program that will fund multiple financial assistance products aimed at supporting the growth and success of small businesses in New Jersey. More information is available at https://www.njeda.gov/main-street-recovery-fund/.

“Supporting small businesses is the centerpiece of Governor Phil Murphy’s plan for a stronger, fairer recovery from the COVID-19 pandemic,” said NJEDA Chief Executive Officer Tim Sullivan. “The Main Street Recovery Program approved today will build on the NJEDA’s successful COVID-19 relief programs to provide new resources tailored specifically to help business owners recover from the impacts of the pandemic and prepare for long-term success.”  

The rules approved today create two grant products funded by the Main Street Recovery Program: the Small Business Lease Assistance Grant and the Small Business Improvement Grant.

The Small Business Lease Assistance Grant is a $10 million program that will provide grants to businesses entering new or amended leases with at least five-year terms that include at least 250 square feet of street-level space. This grant funding will offset a portion of annual lease payments for two years.

The Small Business Improvement Grant is a $15 million program that will provide grants up to $50,000 to reimburse businesses for a portion of costs associated with improvements and/or the purchase or installation of furniture, fixtures, and equipment since March 9, 2020.  

Applications for these programs are currently under development. The NJEDA will announce the application timeline for both programs soon.

In addition to the Small Business Lease Assistance Grant and the Small Business Improvement Grant, the NJEDA intends to pilot additional products to be funded through the Main Street Recovery Program. The Authority anticipates these pilot programs will include financing to help microbusiness lenders provide more low-cost loans and technical assistance for microbusinesses and an expansion of the NJEDA’s existing Micro Business Loan Program through which the Authority will provide low-cost financing directly to eligible microbusinesses.

In line with Governor Murphy’s commitment to a stronger, fairer recovery from the COVID-19 pandemic, 40 percent of all Main Street Recovery Program funds are reserved for businesses located in census tracts that were eligible to be designated as Opportunity Zones. Providing dedicated funding for these census tracts helps to ensure equitable access to resources for communities and businesses that have historically struggled to access resources.

The Main Street Recovery Program is part of a suite of programs created or expanded under the ERA that includes tax credits to incentivize job creation, new construction, and revitalization of brownfields and historic properties; financial resources for small businesses; support for new supermarkets and healthy food retailers in food desert communities; new funding opportunities for early-stage companies in New Jersey; and support for the growing film and digital media industry. The NJEDA will continue to engage the public as new programs and rules are developed.

About the New Jersey Economic Development Authority

The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.

To learn more about NJEDA resources for businesses call NJEDA Customer Care at 609-858-6767 or visit https://www.njeda.gov and follow @NewJerseyEDA on Facebook, Twitter, Instagram, and LinkedIn.

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TRENTON, N.J. (July 7, 2021) – The New Jersey Economic Development Authority (NJEDA) today released for public feedback a draft rule proposal for the new Main Street Recovery Finance Program, as established under the New Jersey Economic Recovery Act of 2020 (ERA). The Main Street Recovery Finance Program is a $100 million fund, under which grants, loans, and technical assistance will be made available to support small and micro businesses in New Jersey. The Main Street Recovery Finance Program will not only provide grants directly to businesses, but will also develop pilot programs over time that will provide loans to other micro business lenders like Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs), increasing their lending capacity to support more New Jersey micro businesses.

Members of the public are encouraged to review the preliminary rules and submit written feedback through an online form available on the Economic Recovery Act website. The NJEDA will also be hosting three listening sessions for public input on the draft rules.

“While the COVID-19 pandemic has been challenging for everyone, few have faced tougher challenges than small business owners and their employees,” said NJEDA Chief Executive Officer Tim Sullivan. “The Main Street Recovery Finance Program is an important new program that will provide much-needed financial support and technical assistance to help businesses get back on their feet and prepare for a strong recovery.”

Draft Main Street Recovery Finance Program rules are available now for review at https://www.njeda.gov/economicrecoveryact/program-specific-feedback/.

Members of the public can also provide input during the NJEDA’s public listening sessions, which are scheduled for the following times:

  • Monday, July 12th at 5:00 p.m.
  • Tuesday, July 13th at 2:00 p.m.
  • Thursday, July 15th at 10:00 a.m.

Members of the public can access the listening sessions at https://tinyurl.com/MainStreetListening; Passcode: Main.

Members of the media interested in attending the session or submitting questions are asked to email media@njeda.com.  

In addition to the Main Street Recovery Finance Program, the Economic Recovery Act creates a suite of programs that includes tax credits to incentivize job creation, new construction, and revitalization of brownfields and historic properties; financial resources for small businesses; support for new supermarkets and healthy food retailers in food desert communities; new funding opportunities for early-stage companies in New Jersey; and support for the growing film and digital media industry. The NJEDA will continue to engage the public as new programs and rules are developed.

For more information and to provide written input on the design and implementation of Economic Recovery Act programs, visit https://www.njeda.gov/economicrecoveryact/.

About the New Jersey Economic Development Authority

The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.

To learn more about NJEDA resources for businesses call NJEDA Customer Care at 609-858-6767 or visit https://www.njeda.gov and follow @NewJerseyEDA on Facebook, Twitter, Instagram, and LinkedIn.

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TRENTON, N.J. (June 4, 2021) – The New Jersey Economic Development Authority (NJEDA) today released a draft of the rules under which the new Personal Protective Equipment (PPE) Manufacturing Tax Credit program will be administered. Created under the New Jersey Economic Recovery Act of 2020 (ERA), the PPE Manufacturing Tax Credit program is a three-year program that provides tax credits to incentivize the development of PPE manufacturing within the state.

Members of the public are encouraged to review the preliminary rules and submit written feedback through an online form available on the Economic Recovery Act website. The NJEDA will also be hosting a Listening Session for Public Input on the PPE Manufacturing Tax Credit program at 5:30 p.m. on Wednesday, June 9th, 2021.

“Getting New Jersey residents back to work is going to be central to ensuring a strong, equitable recovery from the COVID-19 pandemic,” said NJEDA Chief Executive Officer Tim Sullivan. “The PPE Manufacturing Tax Credit program offers incentives for the creation of good jobs in a high-growth sector while ensuring New Jersey is well-prepared to meet any future PPE needs.”

Draft PPE Manufacturing Tax Credit program rules are available now for review at https://www.njeda.gov/economicrecoveryact/program-specific-feedback/.  

The Listening Session for Public Input on the PPE Manufacturing Tax Credit program will take place at 5:30 p.m. on Wednesday, June 9th, 2021. The session is expected to last roughly two hours.

Members of the public can access the session at https://us02web.zoom.us/j/85874967722?pwd=bEkrUlJJRW5pa0RKWStuRmxvYWhjdz09; Passcode: PPE.

Members of the media interested in attending the session or submitting questions are asked to email media@njeda.com.  

Members of the public can also submit written feedback on the PPE Manufacturing Tax Credit program at https://www.njeda.gov/EconomicRecoveryAct or via email to ppemanufacturingtaxcredit@njeda.com.  

In addition to the PPE Manufacturing Tax Credit program, the Economic Recovery Act creates a suite of programs that includes tax credits to incentivize job creation, new construction, and revitalization of brownfields and historic properties; financial resources for small businesses; support for new supermarkets and healthy food retailers in food desert communities; new funding opportunities for early-stage companies in New Jersey; and support for the growing film and digital media industry. The NJEDA will continue to engage the public as new programs and rules are developed.

For more information and to provide written input on the design and implementation of Economic Recovery Act programs, visit https://www.njeda.gov/economicrecoveryact/.

About the New Jersey Economic Development Authority

The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.

To learn more about NJEDA resources for businesses call NJEDA Customer Care at 609-858-6767 or visit https://www.njeda.gov and follow @NewJerseyEDA on Facebook, Twitter, Instagram, and LinkedIn.

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TRENTON, N.J. (May 27, 2021) – Applications are now open for the Emerge program, a new jobs-based tax credit program created under the New Jersey Economic Recovery Act (ERA) of 2020 and administered by the New Jersey Economic Development Authority (NJEDA). The Emerge program will drive economic development in New Jersey by making tax credits available to projects that invest private capital into the state and create good-paying jobs, with a focus on the State’s priority sectors. 

The Emerge program application, as well as complete rules, eligibility requirements, award sizes, and other information, are available at https://www.njeda.gov/emerge.

“Creating good jobs for New Jerseyans has always been central to my administration’s efforts to build a stronger, fairer New Jersey and has become even more important as we begin our recovery from the economic devastation of the COVID-19 pandemic,” said Governor Phil Murphy. “The Emerge program is a well-crafted, targeted tax incentive program that will drive job creation and equitable economic growth throughout New Jersey.”

“Supporting projects that bring good jobs to New Jersey is crucial to recovering from the COVID-19 pandemic and achieving Governor Murphy’s vision for a stronger, fairer New Jersey,” said NJEDA Chief Executive Officer Tim Sullivan. “Launching the application for the Emerge program is a major step forward that will open the door to exciting new economic development projects while also remaining true to our commitments to equity, transparency, and accountability. This will set New Jersey on the path to long-term, sustainable, and fair economic success.”

“New Jersey’s recovery from COVID-19 hinges in large part on our ability to attract and retain businesses to the state and create good jobs for New Jersey residents,” said Senator Paul A. Sarlo, who serves as Chairman of the Senate Budget and Appropriations Committee. “The Emerge Program is a critical economic development tool that will bring successful businesses to New Jersey, incentivize them to create jobs for New Jersey residents, and promote expanded economic opportunities.”

“As we begin the process of recovering from the COVID-19 pandemic, we have an important opportunity to build a more prosperous and equitable employment landscape in New Jersey,” said Senator M. Teresa Ruiz. “The Emerge program will play a key role in our economic recovery by driving job creation and economic growth in impacted communities throughout the state.”

“The only way for New Jersey to fully recover from the COVID-19 pandemic and the associated economic impacts is to drive job creation and economic growth in communities throughout the state,” said Assembly Speaker Craig Coughlin. “The Emerge program is a thoughtfully-crafted incentive that will effectively support business growth in New Jersey while also creating a more fair and equitable economy where all New Jerseyans can succeed.”

“The launch of the Emerge program application is an important step in the process of moving from short-term responses to the immediate COVID-19 crisis to long-term, forward looking programs that will drive recovery and economic growth,” said Assemblywoman Eliana Pintor Marin. “By focusing on job creation, this program responds directly to the need to get New Jerseyans back to work while also attracting successful, growing companies that will serve as engines of economic growth for years to come.”

The Emerge program is part of the suite of programs created under the ERA to address the ongoing economic impacts of the COVID-19 pandemic and build a stronger, fairer New Jersey economy. Through the Emerge program, small and large businesses, as well as non-profits, can apply for tax credits to support projects that meet minimum capital investment, job creation or retention, and other requirements. Projects can qualify to receive tax credits over a seven-year eligibility period, starting after the NJEDA confirms the applicant has completed its investment, employment, and other eligibility requirements.

Base tax credits will range from $500 to $4,000 per job, per year, depending on location and other aspects of the project. Bonuses are also available based on certain criteria such as project location, industry, and alignment with other policy objectives. These bonuses can increase annual per-job credits to a maximum of $8,000 per job. Projects with significant numbers of retained jobs (at least 500 or 1,000 jobs depending on the project’s location) can receive tax credits for retained jobs; however, the ERA sets the amount of tax credits for each retained job at half the amount that would be awarded for equivalent new jobs. Jobs that are covered by a labor harmony agreement are eligible for an additional $1,000 bonus over the capped amounts.

To be eligible for tax credits under the Emerge program, projects must create or retain a minimum number of jobs. The job creation requirement is lower if a business is primarily engaged in a targeted industry or if a business is a “small business” as defined in the program rules. Additionally, at least 80 percent of incented employees’ work time must be spent in New Jersey, and the business must commit to stay in the qualified business facility for at least 1.5 times the duration of the eligibility period. A minimum capital investment in the qualified business facility is required based on the use. Businesses may make an equivalent donation to a Recovery Infrastructure Fund in place of investing in their project facilities. Small businesses are not required to make capital investments.

All projects that receive tax credits under the Emerge program must meet minimum environmental standards, meet prevailing wage obligations for all construction workers and building service workers, and provide health care for employees. Projects that have a total cost of $10 million or more are also required to enter into a Community Benefits Agreement with the NJEDA and the municipality or county in which the project is located. These agreements will create a Community Advisory Committee to monitor compliance with the respective agreement.

To ensure a strong return on investment for New Jersey taxpayers, projects that receive tax credits under the Emerge program must yield a minimum net positive economic benefit to the state of 200 to 400 percent depending on project location and the nature of the project. Applicants must also demonstrate that they are considering a viable out-of-state location, and awards will be limited to the amount the NJEDA determines is necessary to induce the project to locate or remain in New Jersey. The NJEDA will also review detailed financial information about the project to verify the award of tax credits is a “material factor” in the business’s decision to create or retain jobs in New Jersey.

The Emerge program is capped with the Aspire program – a separate ERA program designed to catalyze community redevelopment – at $1.1 billion per year over six years. To ensure the benefits of the program are distributed equitably throughout the state, the Emerge and Aspire program cap is split between northern and southern counties for the first three years of the respective programs. Any unused tax credits for a particular year may be carried forward to the subsequent year subject to geographical and amount limitations in place at that time.

In addition to the Emerge program, the ERA creates a suite of programs that includes tax credits to incentivize job creation, new construction, and revitalization of brownfields and historic properties; financial resources for small businesses; support for new supermarkets and healthy food retailers in food desert communities; new funding opportunities for early-stage companies in New Jersey; and support for the growing film and digital media industry. More information about these programs is available at https://njeda.com/economicrecoveryact.

About the New Jersey Economic Development Authority

The New Jersey Economic Development Authority serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.

To learn more about NJEDA resources for businesses call NJEDA Customer Care at 609-858-6767 or visit https://www.njeda.gov and follow @NewJerseyEDA on Facebook, Twitter, Instagram, and LinkedIn.

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TRENTON, N.J. (May 19, 2021) – The New Jersey Economic Development Authority (NJEDA) today announced that it is accepting public feedback on the proposed rules for the expanded Angel Investor Tax Credit Program. Members of the public can read the draft rules and provide written feedback at www.njeda.gov/program-specific-feedback.

Originally established in 2013, the Angel Investor Tax Credit Program was expanded under the New Jersey Economic Recovery Act of 2020 (ERA). The rule proposal aligns with changes made to the program pursuant to P.L. 2019 c. 145 and implements changes in the ERA. This includes: an increase to the amount of tax credits available each year, an increase in the amount of tax credits available per qualified investment, the availability of bonus credits for qualified investments in targeted locations or in certified minority or women-owned businesses, and the ability for investors to receive a tax credit for  investments made in qualified venture funds.

“Ensuring early-stage companies have access to the financial resources they need to launch and grow is crucial to reestablishing New Jersey as the State of Innovation and achieving Governor Phil Murphy’s vision for a stronger, fairer recovery from COVID-19,” said NJEDA Chief Executive Officer Tim Sullivan. “By incentivizing angel investors to support New Jersey-based companies and providing bonuses for investments in minority- and woman-owned companies, the expanded Angel Investor Tax Credit Program will move us closer to our goal of building the most diverse, inclusive innovation ecosystem in the nation and driving long-term, equitable economic growth.”

The New Jersey Angel Investor Tax Credit Program incentivizes angel investment into emerging New Jersey technology businesses by authorizing the NJEDA to provide tax credits to investors based on percentage of a qualified investment made in a New Jersey business conducting research or engaged in pilot-scale manufacturing or technology commercialization in advanced computing, advanced materials, biotechnology, carbon footprint reduction technology, electronic device technology, information technology, life sciences, medical device technology, mobile communications technology, or renewable energy technology. In addition to being engaged in one of these eligible industries, the business receiving the investment must employ fewer than 225 employees, at least 75 percent of whom work in New Jersey.

In 2019, Governor Phil Murphy expanded the Angel Investor Tax Credit Program to increase the available tax credits on qualified investments and provide bonuses for investments in businesses located in targeted locations or certified minority or women-owned businesses.

Since inception of the Angel Investor Tax Credit Program, the NJEDA has approved more than 1,600 applications from investors representing more than $615 million in total qualified investment into emerging New Jersey technology companies.

The draft rule proposal reflects the 2019 legislative changes to the Angel Investor Tax Credit Program including an increase of the amount of the allowed tax credit from ten percent to twenty percent of an investor’s qualified investment in an emerging New Jersey technology business, as well as a five percent bonus tax credit for qualified investments in businesses located in a qualified Opportunity Zone or New Markets Tax Credit census tract or businesses that are New Jersey certified minority- or woman-owned. The maximum allowed tax credit amount will remain $500,000 for the tax credit vintage year for each qualified investment.

Pursuant to the ERA, the draft rules for the expanded Angel Investor Tax Credit Program also implement the ERA’s expansion of the program. This includes expanding the definition of a qualified investment to include an irrevocable contractual commitment to invest in a qualified venture fund. As defined in the draft rules, a qualified venture fund is a partnership, corporation, trust, or limited liability company that invests cash in a business during the early or expansion stages of a business in exchange for an equity stake in the business. This may include a venture capital fund, a family office fund, or a corporate investor fund; however, the fund must be administered by a professional manager and the qualified investment must be non-refundable and non-transferrable. In addition, the fund must commit to invest at least 50 percent of its committed funds in New Jersey-based businesses. Furthermore, a bonus of 5 percent is available if the fund invests 50 percent of its funds in New Jersey diverse entrepreneurs.

Members of the public can submit written feedback on the draft rules for the Angel Investor Tax Credit Program via www.njeda.gov/program-specific-feedback.

In addition to the expanded Angel Investor Tax Credit program, the ERA creates a suite of programs that includes tax credits to incentivize job creation, new construction, and revitalization of brownfields and historic properties; financial resources for small businesses; support for new supermarkets and healthy food retailers in food desert communities; new funding opportunities for early-stage companies in New Jersey; and support for the growing film and digital media industry. More information about these programs is available at https://njeda.com/economicrecoveryact.

About the New Jersey Economic Development Authority

The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.

To learn more about NJEDA resources for businesses call NJEDA Customer Care at 609-858-6767 or visit https://www.njeda.gov and follow @NewJerseyEDA on Facebook, Twitter, Instagram, and LinkedIn.

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TRENTON, N.J. (May 4, 2021) – The New Jersey Economic Development Authority (NJEDA) today announced that it will reopen applications for the residential component of the Economic Redevelopment and Growth (ERG) Program on June 1, 2021. The Authority first announced the extension of the program, enabled by $50 million in tax credits designated in the Economic Recovery Act of 2020 in March. The ERG program, which was originally created to address project financing gaps in development projects, had previously stopped accepting new applications in June 2019.

The Economic Recovery Act was signed by Governor Phil Murphy on January 7, 2021 to address the ongoing economic impacts of the COVID-19 pandemic and build a stronger, fairer New Jersey economy.

The new phase of the ERG program will be administered based on pre-existing ERG regulations and statutes, as amended by the Economic Recovery Act, which added new prevailing wage and minimum wage requirements. For additional information and detailed eligibility requirements, including a clarifying document outlining all requirements and application review protocols for interested parties, visit https://www.njeda.gov/economicrecoveryact/. Specific questions can be directed to ergextension@njeda.com.

“The decision by Governor Murphy and the Legislature to include $50 million for residential ERG projects will enable us to move much-needed shovel-ready housing projects forward now, while the new programs created by the Economic Recovery Act are being developed,” said NJEDA CEO Tim Sullivan. “These projects will help to drive investment in the state while also creating good-paying construction job opportunities that will put people back to work and communities in New Jersey on a path to economic recovery.”

Under the Economic Recovery Act, residential ERG projects can receive tax credits of up to 30 percent of total eligible project costs. Projects in five cities — Atlantic City, Camden, Paterson, Passaic, and Trenton – can receive tax credits of up to 40 percent of eligible project costs. ERG tax credits are not meant to be a substitute for conventional debt and equity financing, and applicants should generally have their primary debt financing in place before applying.

For more information about the extension of the ERG program and other programs created by the Economic Recovery Act, please visit https://www.njeda.gov/economicrecoveryact/.

About the New Jersey Economic Development Authority

The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.
 
To learn more about NJEDA resources for businesses call NJEDA Customer Care at 609-858-6767 or visit https://www.njeda.gov and follow @NewJerseyEDA on Facebook, Twitter, Instagram, and LinkedIn.