New Job and Income Tax Credits
New Jersey offers State programs that support job creation.
Emerge
Emerge propels job creation and investment in New Jersey, offering qualifying projects up to $8,000 per job annually. With the potential to transform tax credits into direct tax liability reductions or transferable assets, Emerge is a game-changing program for businesses ready to expand their footprint and workforce in New Jersey.
For
Qualifying projects that invest private capital into the state and create a minimum of 35 full-time jobs.
Benefit
Provides per-job tax credits ranging from $500-$8,000 per-job per year, based on project location, bonuses, and the net benefit to the state. Tax credits may directly offset tax liability or may be transferred or surrendered for 85-90% of their value.
Details
Emerge provides tax credits to encourage economic development, job creation, and the retention of significant numbers of jobs in imminent danger of leaving the state. The newly created program is designed to assist qualified businesses that build, acquire, or lease space in the State with plans to create or retain full-time jobs.
New Jobs Investment Tax Credit
The New Jersey Jobs Investment Tax Credit supports projects that mark a new beginning or expansion and create employment opportunities in the state. This incentive is designed to be a catalyst for economic growth, rewarding investments that introduce at least five jobs.
For
Projects that invest in new or expanded business facilities that create new jobs in New Jersey.
Benefit
Qualified companies can receive a maximum percentage of 20% of computed qualifying investment for small business taxpayers or 10% for other businesses.
Details
The New Jobs Investment Tax Credit is given in five equal annual installments. The credit cannot exceed 50% of the portion of the Corporation Business Tax liability which is attributable to and the direct result of the taxpayer’s qualified investment and shall not reduce the tax liability below the statutory minimum. This tax credit is available for investment in new or expanded qualified business facilities that create new jobs in New Jersey.
Manufacturing Equipment and Employment Investment Tax Credit
Aimed at empowering the industrial sector, the Manufacturing Equipment and Employment Investment Tax Credit offers a credit against corporation business tax for investments in qualifying manufacturing equipment and employment growth.
For
Tax credit against corporation business tax liability for investments in certain manufacturing equipment and for certain increased employment.
Benefit
Available from the New Jersey Division of Taxation, the Manufacturing Equipment and Employment Investment Tax Credit provides a credit against corporation business tax liability for investments in certain manufacturing equipment and for certain increased employment.
Details
The manufacturing equipment portion of the credit is limited to 2% (4% for companies with 50 employees or less) of the net cost of qualified equipment up to a maximum allowed credit of $1 million. The employment investment portion of the credit is computed for each of the two succeeding years following the year a credit is allowed for the equipment investment. The tax credit in these years is limited to 3% of the net cost of qualified equipment, not to exceed $1,000 per job created directly related to the equipment.
