New Jersey Opportunity Act for 2013
Created to promote Business Attraction and Retention.
Grow New Jersey Program (GROW)
A tax credit program from the State of New Jersey designed to
strengthen and grow employment. Replaces minimum capital
investment requirements of $20 million with a new formula based on
square footage costs for rehabilitation ranging from $13.00 to $26.00
per sq. ft. and or new construction ranging from $40.00 to $80.00 per
sq. ft. based on type of use.
Amount: Tax credit ranges from $500-$5,000 per newly retained job
with additional *tax bonus in incentive areas between $250 and
$3,000 per job. Businesses can receive 100% of the gross tax
credit for each new full-time position created, and 50% for each
retained position. Benefit to State however, must represent
110% of requested credit.
Target: Various sectors of private non-retail industries located in
qualified *incentive areas (Designation Center PA1 or PA2).
Industry type includes high-tech, manufacturing, logistics, life
sciences, health and financial services.
Deadline: The business must submit application by July 1, 2019 and
document employment requirements in the Agreement within
three years of approval.
Eligibility & Participants: For businesses and start-ups (technology,
manufacturing, transportation, defense, or energy services and
companies) that will create 10-35 new jobs; or, retain 25 to 50
existing jobs; or, if tech start-up or manufacturing—create 10
new and 10 retained jobs.
Eligibility Activities
- Within twenty-four (24) months after receiving tax credit award,
awardee must have a place of business acquired, constructed/
rehabilitated, and operational with any and all necessary
machinery and/or equipment.
- Does not apply to warehouses or distribution facilities.
- Property investments may be made by owner, occupant,
landlord or seller and to meet minimum capital investments
requirements.
- Applications must also meet minimum capital investment
requirements that are based on square foot costs.
Middle Township Economic Development
New Jersey Opportunity Act for 2013
Created to promote Business Attraction and Retention.
Economic Redevelopment & Growth Area (ERG)
An incentive grant-funding source to address revenue gaps in both
residential and commercial development projects for developers and
businesses. Gaps are defined as having insufficient revenues to support
the project debt service under a standard financing scenario.
-
ERG funding can also apply to projects that have a below market
development margin or rate of return. ERG Payments made to the
developer as reimbursements based on the project’s revenue generators
received by the State over a twenty (20) year period. ERG funds can be
pledged or assigned as security for private financing.
Revenue generated by any project to the State must exceed the
reimbursement amount requested for the developer. Net positive
benefit to the State must equal a minimum of 110% of the
requested grant.
Target: A developer with a retail commercial or residential project.
Residential Projects – Redevelopment projects that are
predominantly residential and include multi-family
residential units for purchase or lease, or dormitory units for
purchase or lease.
Commercial Projects – Redevelopment projects that are
predominantly commercial and include retail, and/or office
uses for purchase or lease.
Eligibility:
*Residential and Commercial Projects – EDA will analyze the
developer's financing structure to verify a “gap” or financial need. This
review may result in assistance between 20% and 35% of total eligible
costs.
If receiving tax credits, the Minimum Total Project Cost are at
least $10,000,000 if the project is a disaster recovery project or
located in a municipality with a population less than 200,000
according to the latest federal decennial census.
Amount:
Residential Projects (that generate tax revenue) – No grant
amount can exceed the following limits:
- $40,000,000 per project if located in: Deep Poverty Pocket
or Distressed Municipality.
- $20,000,000 per project if located in an ERG incentive area,
and outside a Deep Poverty Pocket and Distressed
Municipality.
Commercial Projects – The term of each approved state
redevelopment incentive grant agreement may extend for up
to 20 years:
- The annual percentage amount of reimbursement shall not
exceed an average of 75% of the annual incremental state
revenues.
Deadline: Must be filed by July 1, 2019.
Project Types:
* Residential Projects that do not generate tax revenues may also
qualify for tax credits that can be assigned to lenders for project
financing:
- If receiving tax credits, the term of each approved state
redevelopment incentive grant agreement will be up to 10
years: and,
Middle Township Economic Development