Thinking about starting, relocating or growing a business? New Jersey offers powerful business tax incentives that can help you take your company to the next level.
Created by the New Jersey Economic Opportunity Act of 2013, the Grow New Jersey Assistance Program (Grow NJ) and the Economic Redevelopment and Growth Program (ERG) have helped new and relocating companies create thousands of new jobs here, while helping New Jersey companies invest and grow in the State.
We know you’ll find our tax incentives very competitive with programs offered by neighboring states.
A powerful job creation and retention program, Grow NJ helps qualified companies, both large and small, blossom in New Jersey.
Companies in all industries may qualify for tax breaks under the Grow NJ Assistance Program. Technology start-ups (including biotech companies) and manufacturers may qualify for tax incentives by creating as few as 10 full-time jobs or retaining 25 full-time jobs. Companies in targeted industries – transportation, defense, energy, logistics, life sciences, technology, health and finance – may qualify by creating as few as 25 new jobs or retaining 35 jobs.
Tax credits for qualified projects range from $500 to $5,000 per job, per year, over 10 years. A number of bonus credits, each ranging from $250 to $5,000 per job, per year, may be available if the project meets certain requirements, such as location in an urban area, or high job-creation levels. Maximum awards can reach as high as $15,000 per job, per year
In Garden State Growth Zones (Camden, Trenton, Passaic, Paterson and Atlantic City) and 8 South Jersey counties, minimum full-time employment requirements are 1/4 lower and minimum capital investment requirements are 1/3 lower. Projects may qualify by either creating or retaining full-time jobs.
The highest levels of base credits are for projects located in Garden State Growth Zones, Urban Transit Hub Municipalities and “mega projects”.
ERG provides incentive grants to developers and businesses to address revenue gaps in development projects, defined as having insufficient revenues to support the project debt service under a standard financing scenario. It can also apply to projects that have a below market development margin or rate of return.
For commercial projects, incentive grant reimbursement of up to 20% of total project cost is available, with a bonus of 20% available for projects in Garden State Growth Zones. Therefore, the total tax credit may equal up to 40% of total project costs, not to exceed an average of 85% of the project’s annual incremental revenues. Additional requirements, including a comprehensive net benefit analysis to verify that the revenues the State receives will be greater than the incentive, apply to commercial projects under ERG.
New Jersey also offers a variety of other programs to help companies here flourish, including: low-cost financing through tax-exempt bonds; direct loans; and, loan participations/guarantees. Plus, the State offers specialized programs to support emerging technology and biotech companies.
For more information about Grow NJ, ERG and other programs to support your business, visit the New Jersey Economic Development Authority website.
We provide customized RFI responses, demographics, detailed market assessments and other complimentary business relocation and expansion services. When your company chooses to grow in New Jersey, we also will help you publicize your good news.
We’ll make your property search seamless, so you find the site that best meets your relocation or expansion needs.
Our public and private partners provide a wide range of services. From higher education research collaboration to regulatory and legal assistance to workforce training, they’ll ensure you have a smooth landing.