URBAN TRANSIT HUB TAX CREDIT PROGRAM
In accordance with the New Jersey Economic Opportunity Act of 2013 and effective September 18, 2013, the NJEDA is no longer accepting applications for assistance under the Urban Transit Hub Tax Credit Program. Per the Act, all non-residential pending applications submitted for approval under this program will be acted on by December 31, 2013. Residential applications submitted under the competitive solicitation will be acted on within 120 days of the Act’s September 18, 2013 effective date.
This powerful financial tool is designed to spur private capital investment, business development and employment by providing tax credits for businesses planning a large expansion or relocating to a designated transit hub located within one of nine New Jersey urban municipalities.
PROGRAM DETAILS
IF YOU ARE: A developer, owner, or tenant making a qualified capital investment within a designated Urban Transit Hub.
This powerful financial tool is designed to spur private capital investment, business development and employment by providing tax credits for businesses planning a large expansion or relocating to a designated transit hub located within one of nine New Jersey urban municipalities.
Urban Transit Hubs are located within ½ mile of New Jersey Transit, PATH, PATCO, or light rail stations in Camden (expanded to one mile), East Orange, Elizabeth, Hoboken, Jersey City, Newark, New Brunswick, Paterson, and Trenton.
Eligibility is expanded to locations within these municipalities that have active freight adjacent or connected to the proposed building, and utilized by the occupant.
Businesses may apply for the tax credits within five years of the program’s January 13, 2008 effective date and satisfy the capital investment and employment conditions within eight years of that date.
Please note the tax credits may be reduced or forfeited if facility or employment levels are not maintained.
GREEN BUILDING PRACTICE REQUIREMENTS: All projects must meet Green Building Requirements. For guidance on these program requirements, please click here. For questions regarding these requirements, please contact your NJEDA Business Development Officer.
COMPLEMENTARY PROGRAMS: Portions of designated Urban Transit Hubs, with the exception of Hoboken, offer additional incentives through the Urban Enterprise Zone Program to qualifying businesses. These include tax credits for certain new hires, sales tax exemptions for eligible purchases, energy sales tax exemption for eligible manufacturers, and provides for reduced retail sales tax rates on most purchases.
The Business Retention & Relocation Assistance Grant (BRRAG) may not be used in conjunction with the Urban Transit Hub Tax Credit Program, and there may be limitations on the use of the Business Employment Incentive Program (BEIP) at the project site.
* Any proposed amendments to the program rules can be found on the Proposed New Rules/Amendments page
ELIGIBILITY
Developers, owners and tenants can qualify for the Urban Transit Hub Tax Credit Program if they meet the following eligibility criteria:
Developers or owners must make a minimum $50 million capital investment in a single business facility located in one of the nine designated Urban Transit Hubs. In addition, at least 250 employees must work full-time at that facility.
Tenants must occupy space in a qualified business facility that represents at least $17.5 million of the capital investment in the facility and employ at least 250 full-time employees in that facility. Up to three tenants may aggregate to meet the 250 employee requirement.
Projects retaining 250 full-time jobs are eligible for tax credits of up to 80% of the qualified capital investment, while projects creating 200 or more jobs are qualified for up to 100% of the qualified capital investment.
Mixed-use components are part of the “qualified residential project” definition.
Applicants must demonstrate at the time of application that the state’s financial support of the proposed capital investment in a qualified business facility will yield a net positive benefit to both the state and the eligible municipality.
S corporations, limited liability corporations and partnerships are eligible; however, tax credits cannot be applied against an individual’s New Jersey gross tax liability
AWARD SIZE
Tax credits equal up to 100% of the qualified capital investments made within an eight year period. Taxpayers may apply 10% of the total credit amount per year over a ten year period against their corporate business tax, insurance premiums tax or gross income tax liability. Tax credits may be sold under the tax credit certificate transfer program of not less than 75% of the transferred credit amount. Total credits approved under this program are capped at $1.75 billion, with $250 million allocated towards residential projects which may receive up to a 35% credit.
FEES
Application fee: $5,000
Full amount of direct costs of any analysis by a third party retained by the NJEDA
Commitment Fee: 0.5% due at NJEDA Board approval, not to exceed $300,000
Closing Fee: 0.5% due at closing, not to exceed $300,000
Annual Review Fee: $2,500
Tax Credit Transfer Fee: $2,500
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.