All applications for assistance under the Grow NJ Program, including required attachments, must be submitted no later than June 30, 2019.

Grow NJ is a powerful job creation and retention incentive program that strengthens New Jersey’s competitive edge in the increasingly global marketplace.  Businesses that are creating or retaining jobs in New Jersey may be eligible for tax credits ranging from $500 to $5,000 per job, per year; with bonus credits ranging from $250 to $3,000 per job, per year  (award amounts vary based on applicable criteria.)

Eligibility Details

In order to qualify for consideration for Grow NJ, a company must:

1. Locate the project in a Qualified Incentive Area, which is currently defined as one of the following. (See the Mapping Tool link at the bottom of this page for assistance in determining whether the project address is located in an eligible area.)

• Urban Transit Hub Municipality
• Distressed municipality
• Garden State Growth Zones (GSGZ) – The four New Jersey cities with the lowest median family income based on the 2009 American Community Survey from the US Census (Camden / Trenton / Paterson / Passaic); and a municipality which contains a Tourism District as established pursuant to section 5 of P.L.2011, c.18 (C.5:12-219) and regulated by the Casino Reinvestment Development Authority (Atlantic City).
• Garden State Create Zone – at or within a three-mile radius of the outermost boundary of the campus (or satellite campus) of a New Jersey doctoral university (Montclair State University, New Jersey Institute of Technology, Princeton University, Rowan University, Rutgers-New Brunswick, Rutgers-Newark, Seton Hall University and Stevens Institute of Technology.) Please see mapping tool or campus maps at the bottom of the page to determine if your project location is eligible, and please see list of contacts at the various doctoral universities to contact for more information on pursuing collaborative research opportunities with a particular school.
  • To be considered a Garden State Create Zone, in addition to being located in proximity to a NJ doctoral university, the business must be in a targeted industry and the facility used by the business to conduct a collaborative research relationship with that NJ doctoral university. A collaborative research agreement between a Grow NJ applicant and the University will be reviewed for program compliance based on Collaborative Research Agreement Qualification Worksheet.   Any terms beyond those outlined on the worksheet are ultimately up to the discretion of the University and corporate partner. The collaboration agreement should be entered into subsequent to NJEDA’s award approval, but prior to any certification of funds being award.
• Projects in a priority area (see Program Rules below for more information)
• Other eligible areas not located within a distressed municipality or priority area, including an Aviation District; Planning Areas 1, 2 or 3 pursuant to State Planning Act; certain portions of Meadowlands, Pinelands and Highlands; certain portions of Planning Areas 4A, 4B & 5; and the “sports complex” under the jurisdiction of the New Jersey Sports and Exposition Authority

2. Meet or exceed the minimum employment and capital investment requirements, as outlined below:

Minimum Full-Time Employment Requirements

Minimum employment numbers are reduced to 3/4 of the number listed above in GSGZs and in eight South Jersey counties: Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Ocean and Salem.  In the case of any fractional total, the minimum employment total will be rounded up to the next largest whole number.

Minimum Capital Investment Requirements

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.  In the case of any fractional total, the minimum capital investment will be rounded up to the nearest dollar.

3. Demonstrate that the award of the tax credit is a “material factor” in the company’s decision to create or retain at least the minimum number of full-time jobs unless the project is located in a

GSGZ that qualifies under the Municipal Rehabilitation and Economic Recovery Act (MRERA) (Camden), or which contains a Tourism District established by section 5 of P.L.2011, c.18 (C.5:12-219) and regulated by the Casino Reinvestment Development Authority (Atlantic City), in which case, demonstrate that the award of tax credits is a material factor in the business decision to make a capital investment and locate at least the minimum number of full-time jobs in such GSGZ.

4.  Demonstrate that the capital investment and the resultant creation of eligible positions will yield a net positive benefit of at least 110 percent of the requested tax credit amount, or, for a project in a GSGZ that qualifies under the MRERA (Camden), 100 percent of the requested tax credit prior to factoring in the tax credit.

5. All projects must meet Green Building Requirements.  For guidance on these program requirements, please click here.  For questions regarding these requirements, please contact your NJEDA Business Development Officer.

6. Within 12 months (24 months if new construction or Mega Project) following the date of application approval by the NJEDA, each approved business must submit progress information indicating that the business has site plan approval, committed financing for and site control of the qualified business facility. No document evidencing site control shall have been executed prior to Authority Board approval unless it was disclosed prior to said approval and deemed acceptable regarding the required material factor from #3 above. Unless otherwise determined by NJEDA in its sole discretion, NJEDA’s approval of the tax credits shall expire if the progress information is not received within the required time period.

7. Enter into any construction contracts associated with the project using “prevailing wage” labor rates and affirmative action requirements.

8. Maintain the project and related employment at the project site for 1.5 times the period in which the business receives the tax credit commencing upon Authority acceptance of the project completion certifications.

9. Businesses receiving tax credits must maintain a minimum of 80% of its full-time New Jersey workforce from the last tax 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 incentive agreement.  If the full-time New Jersey workforce or the number of full-time employees at the qualified business facility falls below the corresponding 80% threshold, the business will forfeit its tax credit amount for that tax period and each subsequent tax period until the first tax period for which the full-time New Jersey workforce or full-time jobs at the qualified business facility is restored back to the minimum level and documentation reflecting such has been reviewed and approved by the NJEDA Board.  

10. For projects with outstanding commitments under other NJEDA incentive programs, the applicant may unwind their current commitment in certain circumstances and under certain conditions to take advantage of the Grow NJ Program.  For questions regarding this process, please contact your NJEDA Business Development Officer.

TAX CREDIT AMOUNTS AVAILABLE:

Qualified eligible businesses receive tax credits per job, per year for a period of up to ten years for each new or retained full-time job to be located at the qualified business facility.  The maximum amount of the tax credits to be applied by the business annually is generally determined as follows: a gross amount per job/per year is obtained by adding all applicable bonuses to the base amount; the gross amount is then subject to a cap. 100% of the gross amount per new job is allowed, whereas (subject to certain exceptions) retained jobs receive the lesser of the capital investment divided by 10 divided by the sum of the new and retained full-time jobs in the project or 50% of the gross amount per retained job is allowed. Finally, the total amount of annual tax credits is subject to a maximum cap.

 In addition, for each application for tax credits in excess of $4 million annually, the amount of tax credits available to be applied by the business annually shall be the lesser of the permitted statutory maximum amount or an amount determined by the NJEDA necessary to complete the project, which shall be determined through staff analysis of all locations under consideration by the business and all lease agreements, ownership documents, or substantially similar documentation for the business’s current in-State locations and potential out-of State location alternatives.

Base Calculation of Tax Credits
 

* If a project is located in a “Priority Area” or “Other Eligible Area,” the annual 1/10^th total actual certified credit amount is capped at 90% of employer withholding taxes remitted from the qualified business facility for such year.

**  Businesses seeking an award as a Mega Project must be presented to the NJEDA Board no later than the December 2017 Board meeting. Projects classified as “Mega Projects” include:

• Logistics, manufacturing, energy, defense, or maritime businesses in a port district or businesses in the aviation industry located in an aviation district with:
  • Capital investment of at least $20 million and 250 jobs created or retained; or
  • 1,000 jobs created or retained; or;
• A qualified business facility located in an urban transit hub, having a capital investment in excess of $50 million and at which more than 250 full time employees of a business are created or retained; or
• A project located in an existing area designated in need of redevelopment within Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Ocean or Salem counties having a capital investment in excess of $20 million, and at which more than 150 full-time employees are created or retained.
• A qualified business engaged in research, development or manufacture of drugs and medical devices or licensed to provide clinical laboratory services; with:
  • ​Capital investment of more than $20,000,000 and more than 250 full-time jobs created/retained; or 
  • More than 1,000 full-time jobs created/retained

Generally applicable bonuses are listed below:

Bonus Criteria 

A different tax credit award determination may apply if the project is located in a GSGZ that qualifies under the MRERA (currently Camden) and will create 35 or more jobs new to Camden and make a capital investment of at least $5 million. If so, please contact your NJEDA Business Development Officer.

FEES**:

• Application Fee
  • $1,000 ($10 million tax credit or less and 100 or fewer jobs);
  • $2,500 ($10 million tax credit or less and over 100 jobs);
  • $5,000 (all others)
• Approval Fee: 0.5% of the approved amount with a $500,000 cap, payable prior to Board approval.

Note: For projects capped at 90% of employer withholding taxes, NJEDA offers two approval fee options.

• Issuance Fee: 0.5% of tax credit amount with a $500,000 cap
• Servicing Fee: 2% of annual amount with an annual cap of $75,000.
• Tax Credit Transfer Fee: $5,000 first request; $2,500 for each additional request made annually.
• Minor Modification Fee:
  • $5,000 ($5 million total tax credit or less);
  • $10,000 (all others)
• Major Modification Fee:
  • $7,500 ($5 million total tax credit or less);
  • $25,000 (all others)
• Extension Fee:
  • $5,000 (first 6 months);
  • $10,000 (second 6 months)
• Unwind Fee:
  • ​$5,000 (minor); $25,000 (major)
• Full amount of direct costs of any analysis by a third party retained by the NJEDA

Division of Taxation Tax Clearance Certificate required.  Certificates must be requested through the State of New Jersey’s Premier Business Services (PBS) portal online.

• Under the Tax & Revenue Center, select Tax Services, then select Business Incentive Tax Clearance.
• If the applicant’s account is in compliance with its tax obligations and no liabilities exist, the Business Incentive Tax Clearance can be printed directly through PBS.

Please note:  It is the applicant/client’s responsibility to maintain a current and clear tax clearance certificate.  If a current and clear certificate is not evidenced to NJEDA at time of closing, NJEDA will not proceed with closing.

**All fees are non-refundable except for the approval fee due prior to approval, which shall be refunded if the Authority does not approve the tax credit.

*** Applications for assistance under the Grow NJ Program, including required attachments, must be submitted no later June 30, 2019, except that businesses seeking an award as a Mega Project must apply by September 18, 2017.

Additional terms and conditions pursuant to P.L. 2013, c. 161, , as amended, and implementing regulations at N.J.A.C. 19:31-18.1 et seq. apply.

Projects utilizing NJEDA financial assistance for construction related costs are subject to state prevailing wage requirements.
 
Effective April 1, 2020 all construction contracts in which prevailing wage applies must provide proof of valid NJ Department of Labor Construction Registration Certification. Please email PWCR@dol.nj.gov if you have any questions about this requirement. Please be advised that a valid Contractor Registration Certificate is required to perform construction on this NJEDA financially assisted project.

Courtesy Copy of Current Grow NJ Program Rules, N.J.A.C. 19:31-18.1 through 18.19 *

Courtesy Copy of Grow New Jersey Assistance Act, N.J.S.A. 34:1B-242 et seq.

Grow NJ Policies & Procedures Webinar Presentation – 8/15/2017

Campus Map – Montclair State University

Campus Map – New Jersey Institute of Technology

Campus Map – Princeton University

Campus Map – Rowan University

Campus Map – Rutgers University – New Brunswick

Campus Map – Rutgers University – Newark

Campus Map – Seton Hall University

Campus Map – Stevens Institute of Technology

Collaborative Research Agreement Qualification Worksheet

Garden State Create Zone – NJ Doctoral University Contact List