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.

Eligibility

In order to qualify, a project must meet the following requirements:

1. The project must locate into a Qualified Incentive Area.
2. It will meet or exceed minimum employment and capital investment requirements. Those requirements are outlined below:

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 employment numbers are reduced to 3/4 of the number listed above in Garden State Growth Zones (“GSGZ”) and in eight South Jersey counties: Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Ocean and Salem.


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

Minimum capital investment amounts are reduced to 2/3 of the amount listed above in GSGZs and in eight South Jersey counties: Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Ocean and Salem.


3. 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.
4. 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.
5. The project must meet Green Building Requirements.
6. 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.
7. All construction contracts related to the project must use “prevailing wage” labor rates and affirmative action requirements.
8. 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.
9. 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.

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.

Fees
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.

Assistance is available to self-employed workers, independent contractors, gig and platform workers who are impacted by COVID-19 through Pandemic Unemployment Assistance (PUA) and possibly the Families First Coronavirus Response Act (FFCRA).

Per the New Jersey Department of Labor & Workforce Development office, PUA potentially provides the same amount as regular unemployment (60% of your average weekly salary, up to a maximum of $713 per week) for up to a total of 39 weeks. The PUA amount for the self-employed is calculated using prior year(s) tax returns if wages are not reported through wage records. The New Jersey Department of Labor says that the minimum payment will be $231 a week for 39 weeks. PUA recipients are also eligible for an extra $600 per week. PUA benefits are considered taxable income.

The New Jersey Department of Labor has prepared two downloadable guides to help you understand what benefits are available under the PUA and the FFCRA and how to apply for them. If you are a self-employed worker, independent contractor, gig and platform worker please read them both before applying for Unemployment Insurance benefits.

You can find that guidance here: https://myunemployment.nj.gov/labor/myunemployment/independentcontractors.shtml

HBK will continue to follow developments and provide guidance and clarity surrounding COVID-19 business issues. To discuss COVID-19’s effect on your business, contact your HBK advisor.

As a result of COVID-19 causing people to work from home, the Division will temporarily waive the impact of the legal threshold within N.J.S.A. 54:10A-2 and N.J.A.C. 18:7-1.9(a) which treats the presence of employees working from their homes in New Jersey as sufficient nexus for out-of-state corporations. If employees are working from home solely as a result of closures due to the coronavirus outbreak and/or the employer’s social distancing policy, no threshold will be considered to have been met.

For additional information related to the New Jersey guidance on telecommuting during the COVID-19 crisis please click on the links below:
https://www.state.nj.us/treasury/taxation/
https://www.state.nj.us/treasury/taxation/covid19-payroll.shtml

HBK will continue to follow developments and provide guidance and clarity surrounding COVID-19 business issues. To discuss COVID-19’s effect on your business, contact your HBK advisor.

The NJEDA will launch the application for its Small Business Emergency Assistance Grant Program on Friday, April 3, 2020, at 9:00 am and close it on April 10, 2020, at 9 a.m. The grant program is part of a package of initiatives announced last week to support businesses and workers facing economic hardship due to the outbreak of the novel coronavirus COVID-19.

The Small Business Emergency Assistance Grant Program will provide up to $5,000 to NJ-based small- and medium-sized businesses and non-profits that have between 1–10 full time equivalent employees (“FTE”). The grant funding is targeted as unrestricted payroll and working capital support, and cannot be used for any capital expenses, including construction.

Grant values are calculated at $1,000 per FTEs reported on a business’ WR-30 filed with the New Jersey Department of Labor and Workforce Development.

• Minimum grant amount (per application): $1,000
• Maximum grant amount (per application): $5,000

For additional information on the NJEDA Small Business Emergency Assistance Grant Program please click here.

Applications for other NJEDA COVID-19 programs, including no/low-interest loans, entrepreneurship support, and technical assistance for those applying for U.S. Small Business Administration loans will be available in the coming weeks. Businesses and nonprofits can find eligibility requirements for all programs on the COVID-19 Business Information Hub or use the Eligibility Wizard to identify which emergency assistance programs they may want to consider for their business’s specific needs. Comprehensive information about New Jersey’s response to the novel coronavirus outbreak is available here: https://covid19.nj.gov/.

The New Jersey Economic Development Authority (EDA) approved a package of grant and loan programs for small and mid-sized businesses and non-profits hit hard by the coronavirus crisis. There are seven initiatives will support between 3,000 and 5,000 enterprises. The seven initiatives are:

• Small Business Emergency Assistance Grant Program
• Small Business Emergency Assistance Loan Program
• Community Development Finance Institution (CDFI) Emergency Loan Loss Reserve Fund
• CDFI Emergency Assistance Grant Program
• NJ Entrepreneur Support Program
• Small Business Emergency Assistance Guarantee Program
• Emergency Technical Assistance Program

It is suggested that all business owners who are interested in these programs to QUICKLY take inventory of all necessary evidence of cash flow and income over the past year, including receipts and invoices, and to connect with your accountants to put your most effective foot forward during the application process and get in early.

For additional information on the grant and loan programs please click on the following two links:

https://www.njbia.org/edagrants/?utm_source=Real%20Magnet&utm_medium=email&utm_campaign=152612344

https://faq.business.nj.gov/en/collections/2198378-information-for-nj-businesses-on-the-coronavirus-outbreak

HBK will continue to follow developments and provide guidance and clarity surrounding COVID-19 business issues. To discuss COVID-19’s effect on your business, contact your HBK advisor.

The federal government has extended, until July 15, 2020, the tax filing and payments deadline for all taxpayers who had an April 15, 2020 deadline. Many states have come forward and announced extension plans of their own, with some states mirroring the extension provided by the federal government and other states implementing their own extension of time to file and pay. Each state, and locality, has adopted its own provisions and as this is a developing story, we are expecting more states and localities to release guidance. Below are several states that impact HBK clients and the information that those states have released so far.

This information was last updated on March 25, 2020.

For more information on states that are not included in this chart please consult the state extension information put out by the American Society of CPA’s which can be found here https://www.aicpa.org/content/dam/aicpa/advocacy/tax/downloadabledocuments/coronavirus-state-filing-relief.pdf

Employers and employees of Pennsylvania, New Jersey and New York who are affected by the COVID-19 virus have the following resources available:

Pennsylvania –
If you are employed in Pennsylvania and are unable to work because of COVID-19, you may be eligible for Unemployment or Workers’ Compensation benefits. Previously, claimants were not eligible for benefits during their first week of unemployment (the “waiting week.”) This has been suspended; eligible claimants may receive benefits for the first week that they are unemployed.

Click the link below for additional information:
https://www.uc.pa.gov/Pages/covid19.aspx

If you believe you may have been exposed to COVID-19 in your workplace, you may be eligible for workers’ compensation (WC).
https://www.uc.pa.gov/COVID-19/Pages/WC-COVID-FAQs.aspx

New York –
The 7-Day waiting period is being waived for Unemployment Insurance benefits for people who are out of work due to COVID-19 closures or quarantines.

Click the link below for additional information:
https://labor.ny.gov/unemploymentassistance.shtm

New York offers both workers compensation and disability insurance. Currently, the website does not offer much guidance regarding the COVID-19.

Click the link below for additional information:
http://www.wcb.ny.gov/content/main/Workers/Workers.jsp

The state of New York will allow some homeowners to skip their mortgage payments for three months in response to the spread of COVID-19.On Thursday, the New York Department of Financial Services (DFS) sent a letter to mortgage servicers directing them to provide several relief options in response to the outbreak, including suspending mortgage payments for up to 90 days.

Click the link below for additional information:
https://www.dfs.ny.gov/industry_guidance/industry_letters/il20200319_coronavirus_mortgage_relief

New Jersey –
A person who is out of work because their employer voluntarily closed because of the COVID-19 could be eligible for unemployment insurance.

Click the link below for additional information:
https://myunemployment.nj.gov/

New Jersey has among the most comprehensive Earned Sick Leave, Temporary Disability and Family Leave Insurance laws in the country, which cover all employees – full-time, part-time, temporary and seasonal.

Click the link below for additional information:
https://www.nj.gov/labor/worker-protections/earnedsick/covid.shtml

Small Business Association (SBA) – SBA’s Economic Injury Disaster Loans offer up to $2 million in assistance for small businesses and non-profits. These loans can provide vital economic support to small businesses to help pay for fixed debts, payroll and other bills that cannot be paid because of the COVID-19 impact. Pennsylvania, New Jersey and New York are among the states that have been approved.

Click the links below for additional information:
https://www.sba.gov/about-sba/sba-newsroom/press-releases-media-advisories/sba-provide-disaster-assistance-loans-small-businesses-impacted-coronavirus-covid-19
https://www.sba.gov/funding-programs/disaster-assistance

Conclusion:
We will continue to follow developments and provide guidance and clarity surrounding COVID-19 business issues. We are only beginning to understand how to navigate these unprecedented times. For business questions related to or to discuss COVID-19’s effect on your business, contact your HBK advisor.