New Jersey has awarded companies nearly $1 billion worth of incentives under the Grow New Jersey program. Launched in 2012, Governor Christie significantly upgraded this program on September 18, 2013 allowing for uncapped awards as high as $150,000 per new job created (half as much for retained jobs). Duff & Phelps has secured nearly $60,000,000 of awards for clients under Grow New Jersey and is now advising clients on their potential awards under this new version.
Important facts to note:
- Grow New Jersey awards are in the form of assignable tax credits that can be sold for cash and are paid out over a ten year period;
- Awards are based on over 20 factors that include location, salary, industry, capital investment and others.
- Eligibility is based on the number of jobs created or retained and capital investment benchmarks based on industry. These criteria vary depending on a project’s location; and
- Companies must, in most cases, demonstrate that an out-of-state location for the project is competitive with an in-state location and that New Jersey will economically benefit from the project (net of incentives).
Duff & Phelps’ Business Incentives Advisory (BIA) practice is a national leader assisting businesses in realizing economic development incentives. In recent years the practice has completed projects involving capital investment of $5.8 billion and secured incentives of approximately $2.2 billion. With dedicated incentives professionals strategically located across the United States, the practice is uniquely positioned to enable clients to maximize the tax and non-tax incentives awarded to their projects.