Economic Opportunity Act Seeks to Attract New Business to New JerseyApril 28, 2016 – Articles Commerce and Industry Association of New Jersey
If your business is considering relocating to New Jersey, you may be eligible for a significant tax-credit award. Through the Economic Opportunity Act of 2013 (the Act), New Jersey’s leaders have taken a giant step toward increasing economic development in New Jersey by awarding tax credits to businesses that create and retain jobs in the state. To see if your business could qualify for these incentives, a brief overview of the Act and its incentive programs is required. New Jersey Governor Chris Christie first signed the Act into law on September 18, 2013. The Act was created to maximize economic development and private-sector job growth. The Act, which is administered by the New Jersey Economic Development Authority (EDA), consolidated five existing economic incentive programs into two: the Grow New Jersey Assistance Program (Grow NJ) and the Economic Redevelopment Growth Program (ERG).
The Grow NJ program awards tax credits to businesses (other than point-of-sale retail businesses) that create or retain jobs in New Jersey and make a qualified capital investment at an appropriate business facility. Once an applicant meets certain threshold requirements, a business may be eligible for tax credits that are applicable to the business’s New Jersey state corporate income tax liability, insurance company tax, and franchise tax. These tax credits can be used for up to 10 years from the date that the business certifies compliance with the Grow NJ requirements.