New Jersey offers businesses that create and retain jobs in the state tax credits that range from $500 to $5,000 per job, per year. In addition, bonus credits are available ranging from $250 to $3,000 per job, per year. This credit is available to businesses that make a qualified capital investment at a qualified business facility in a qualified incentive area as defined in the Grow New Jersey Assistance Act.
The credit can be applied to 100% of the tax liability and can be passed through to partners of a partnership. It can be carried forward up to 20 years or sold.
In order to qualify, a project must meet the following requirements:
- The project must locate into a Qualified Incentive Area.
- It will meet or exceed minimum employment and capital investment requirements. Those requirements are outlined below:
- Demonstrate that the award of the tax credit is a “material factor” in the business’s decision to create or retain at least the minimum number of full-time jobs.
- The business must demonstrate that the capital investment and creation of the jobs will yield a net positive benefit of at least 110% of the requested tax credit amount.
- The project must meet Green Building Requirements.
- Within 12 months from the date of approval by the NJ Economic Development Authority, the business must submit progress information indicating that the business has site plan approval, committed financing for and site control of the qualified business facility.
- All construction contracts related to the project must use “prevailing wage” labor rates and affirmative action requirements.
- The business must maintain the project and related employment at the project site for 1.5 times the period for which the business receives the credit beginning with acceptance by the Authority of the project completion certifications.
- The business must maintain a minimum of 80% of its full-time New Jersey workforce from the last ax period prior to the grant approval and 80% of the number of new and retained full-time jobs at the qualified business facility specified in the agreement.
Minimum Full-Time Employment Requirements
|Industry||New/Retained Full-Time Jobs|
|Tech start-ups and manufacturing businesses||10/25|
|Other targeted Industries||25/35|
|All other businesses/industries||35/50|
Minimum Capital Investment Requirements
|Project Type||($/Square Foot of Gross Leasable Area)|
|Industrial, Warehousing, Logistics and R&D - Rehabilitation Projects||$20|
|Industrial, Warehousing, Logistics and R&D - New Construction Projects||$60|
|Other – Rehabilitation Projects||$40|
|Other – New Construction Projects||$120|
Tax Credit Amounts Available
Qualified eligible businesses will be awarded tax credits for up to 10 years for each new or retained full-time job located at the qualified business facility.
Depending on the amount of the credit and number of jobs, the application fee ranges from $1,000 to $5,000.
Businesses considering expanding in New Jersey should consider a project in one of the qualified locations to take advantage of the tax credits available. If you have questions about the New Jersey Assistance Tax Credit, please contact your HBK Advisor.