BUSINESS EMPLOYMENT INCENTIVE PROGRAM (BEIP)
On January 11, 2016, Governor Christie signed the bipartisan P.L. 2015, c. 194 into law, permitting the voluntary conversion of outstanding BEIP grant commitments into refundable tax credits. Under the law, a business approved for a BEIP grant that chooses to pursue this opportunity had 180 days following enactment (by July 11, 2016) to direct the NJEDA to convert the grant to a refundable tax credit. The law included a structure that manages the fiscal impact on the State in any one year, while also allowing for the issuance of tax credits to those companies that have been awaiting grant payments the longest. Credits will be made available for use beginning in Fiscal Year 2017.
Click here to read the statute
In accordance with the New Jersey Economic Opportunity Act of 2013 and effective September 18, 2013, the NJEDA is no longer accepting applications for assistance under the Business Employment Incentive Program (BEIP). Per the Act, all pending applications submitted for approval under this programs will be acted on by December 31, 2013.
IF YOU ARE: An economically viable expanding or relocating business that creates jobs in New Jersey.
An economically viable expanding or relocating business that creates jobs in New Jersey.
YOU CAN ELECT: To secure annual incentive grants via the Business Employment Incentive Program (BEIP).
IN THE AMOUNT OF: Up to 80% of the total amount of employees’ state income taxes withheld by the company during the calendar year from the new employees hired, awarded for up to 10 years, to a maximum of $50,000 per employee over the course of the grant.
BENEFITS: BEIP is a powerful incentive for encouraging businesses to locate and expand in New Jersey. Approved businesses receive annual cash grants based on the number of new jobs they have created in the State of New Jersey.
PROGRAM DETAILS
In order to qualify for a BEIP grant, businesses must create at least 25 new jobs within a 2-year period; emerging high technology and biotech companies’ eligibility threshold is 10 new jobs. A business must also demonstrate that the BEIP grant is a “material” factor in moving the job expansion or relocation forward in New Jersey, and that it is economically viable.
The standard BEIP incentive is limited at 50% of the employees’ state income taxes withheld on the newly created jobs; however, companies that meet certain Smart Growth objectives can have their grant boosted to 80%. Qualifying businesses may be eligible for up to 10 years worth of grants, though they must maintain the project and the jobs in New Jersey for at least 1.5 times the number of years the grant is in effect. Greater consideration is given to positions that average 1.5 times the minimum wage during the grant agreement.
PROGRAM GUIDE
QUESTIONS
For more information or to ask a specific question, please send an email to customercare@njeda.gov and a team member will reach out to you.