| State: |
NJ |
| Incentive Type: |
Income/Franchise Tax Incentives and Credits |
| Incentive Title: |
Investment Credits |
| Description: |
1. MANUFACTURING EQUIPMENT AND EMPLOYMENT INVESTMENT TAX CREDIT: Income tax credit of 2% of the investment base for qualified equipment, up to a maximum of $1,000,000. Increases to 4% for smaller businesses. A separate employment investment credit is also available for increases in the average number of qualified employees.
2. INVESTNJ BUSINESS GRANT PROGRAM: Available to businesses in operation for at least 2 years that employ at least 5 full-time employees and are creating jobs, making a capital investment or both.
Program provides grants in the amount of $3,000 per each new full-time job created with max of $500,000 per applicant or 7% of a qualified capital investment up to $1 million. The grants can be used as credits against corporate tax liability.
3. NEW MARKETS TAX CREDIT PROGRAM: Available to businesses or nonprofit organizations in the State of New Jersey with a project located within areas designated for Smart Growth. The program provides below-market equity investment capital and commercial loans under the New Markets Tax Credit Program. New Markets Tax Credit Program offers financing for projects in distressed areas throughout New Jersey, at a fixed annual interest rate of 3%. Investors receive a federal tax credit for making an equity investment or loan to a Community Development Entity (CDE). The CDE then uses the funds to make equity investments or loans to qualified developers in eligible New Jersey localities. The program offers loan up to $10 million, with an annual interest rate of 3%. The funds can be used toward fixed assets and working capital.
4. URBAN TRANSIT HUB TAX CREDIT PROGRAM: This powerful program was established to stimulate private capital investment, business development and employment by providing tax credits for businesses planning a large expansion in or relocation to designated transit hubs within nine New Jersey urban municipalities. Available developers who make a minimum of $75 million of capital investment in a single business facility located in one of the nine designated urban transit hubs, with at least 250 full-time employees working at that facility; or a tenant that occupies space in a qualified business facility that represents at least $25 million of the capital investment in the facility and employs at least 250 full-time employees. The program may offer credits equal to up to 100% of the qualified capital investments that may be applied against corporation business tax, insurance premiums tax or gross income tax liability. Annually for 10 years, the taxpayer may use a credit equal to 10% of the qualified capital investment.
5.URBAN ENTERPRISE INVESTMENT TAX CREDIT
A qualified business, which is not entitled to an employee tax credit, may be entitled to the investment tax credit. This credit is only available to an employer with fewer than 50 employees. The investment must be at least $5,000 if there are 10 or fewer employees, and increases by $500 for each additional employee.
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| Eligibility Requirements: |
1.Must invest in qualified manufacturing equipment.
2.New positions must be eligible for health benefits and maintained for at-least 12 months. Positions benefiting from the Business Employment Incentive Program (BEIP), Business Retention and Relocation Assistance Grant (BRRAG) Program or Urban Transit Hub Tax Credit are not eligible for grants under the program. Positions must be filled by NJ resident.
3.Applicants must demonstrate commitment to remain at the project site for at least 7 years. All loans require board approval by both the EDA and the New Jersey Community Development Entity, LLC.
4.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. Urban Transit Hubs are located within ½ mile of a New Jersey Transit, PATH or PATCO stations in: Camden, East Orange, Elizabeth, Hokoen, Jersey City, Newark, New Brunswick, Paterson or Trenton.
5.To qualify for the credit, the Urban Enterprise Zones Authority must approve the investment. |
| Geographic Restrictions: |
Statewide, 4. 9 Pre-Estab. Urban Transit Hubs |
| Granting Authority: |
1 & 3. Economic Development Authority |
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