| State: |
NJ |
| Incentive Type: |
Income/Franchise Tax Incentives and Credits |
| Incentive Title: |
Jobs Credits |
| Description: |
1. NEW JOBS INVESTMENT TAX CREDIT: Nonrefundable tax credit available to business facilities that create new jobs.
2. REDEVELOPMENT AUTHORITY PROJECT TAX CREDIT: A tax credit for the creation of new jobs in a redevelopment area. This is a "one time" credit that may be carried forward one year.
3. BUSINESS RETENTION AND RELOCATION ASSISTANCE GRANT(BRRAG) CREDIT TRANSFER PROGRAM: Administered by the New Jersey Commerce, Economic Development and Tourism Commission. The program provides grants to businesses relocating operations within NJ and retaining jobs. The grant can equal up to $1,500 per job retained and be used as a tax credit against the company’s corporate tax liability.
Also see – BUSINESS RETENTION AND RELOCATION ASSISTANCE GRANT TAX CREDIT TRANSFER PROGRAM The BRRAG Tax Credit Certificate Transfer Program also offers potential buying businesses an opportunity to reduce their corporate business tax liability by purchasing unused BRRAG tax credits from the selling business.
4. BUSINESS EMPLOYMENT INCENTIVE PROGRAM (BEIP): Incentive to help businesses locate and expand in New Jersey while creating jobs. The annual incentive grants can equal up to 50% of the total amount of state income taxes withheld by the company for the new employees (up to 80% is available for companies meeting specific Smart Growth objectives). Grants can be awarded for up to 10 years and used toward fixed assets, working capital and refinancing of bank debt.
5. ECONOMIC RECOVERY TAX CREDIT A taxpayer that is engaged in the conduct of business within a qualified municipality and who is not receiving a benefit under the “New Jersey Urban Enterprise Zones Act” may claim a tax credit equal to $2,500 for each new full-time position at that location in credit year one and $1,250 for each new full-time position at that location in credit year two.
6.URBAN ENTERPRISE ZONE EMPLOYEE TAX CREDIT
A taxpayer that has been designated as a “qualified business” as defined in the New Jersey Urban Enterprise Zones Act, N.J.S.A. 52:27H-60 et seq., may qualify for either an employee tax credit or an investment tax credit.
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| Eligibility Requirements: |
1. Smaller corporations must add 5 new jobs. Larger corporations must add 50 new jobs. Tax credits may not be carried forward.
2. New jobs created must be located in a redevelopment area and the taxpayer must be actively conducting business at the location.
3. Eligible business must relocate 50 jobs within NJ to a new facility or rehabilitate an existing facility and obtain a new Certificate of Occupancy. Jobs must be subject to NJ income tax and be maintained full-time jobs for 5 years. Grant must be a material factor in decision not to relocate outside of NJ, entity must have been in operation within NJ for at least 10 years. Retail and point-of-purchase are not eligible. Transfer Program Credits are purchased for at least 75 percent of their value.
4. Eligible businesses must create 25 or more new jobs within 2 years, 10 or more new jobs for companies in technology or biotech industries. Projects must show BEIP grant is material factor in creating the new jobs in New Jersey and jobs must be maintained for 1.5 times the number of years the grant is effective for.
5. Taxpayer must engage in the conduct of business within a qualified municipality and not receive a benefit under the “New Jersey Urban Enterprise Zones Act.”
6. To be eligible, the Urban Enterprise Zones Authority must have certified the taxpayer as a qualified business. |
| Geographic Restrictions: |
1,3,4. Statewide 2. Designated Redevelopment Area |
| Granting Authority: |
New Jersey Department of Commerce |
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