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.)
Award amounts vary based on applicable criteria. Please see “Base Calculation of Tax Credits” and “Bonus Criteria” below for more information
Corporate business and insurance premiums tax credits
Powerful job creation and retention incentive program that strengthens New Jersey’s competitive edge against tax incentive programs in surrounding states
Please see program details below for full eligibility criteria. Please see mapping tool to determine if your project location is eligible.
In order to qualify for consideration for Grow NJ, a company must:
- 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.)
Meet or exceed the minimum employment and capital investment requirements, as outlined below:
- 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 EDA’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.
Minimum Full-Time Employment Requirements
Minimum employment numbers are ¼ lower (8/19; 19/27; 27/38) in Garden State Growth Zones and in eight South Jersey counties: Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Ocean, and Salem.
||New / Retained Full-time Jobs
|Tech startups and manufacturing businesses
||10 / 25
|Other targeted Industries
||25 / 35
|All other businesses/industries
||35 / 50
Minimum Capital Investment Requirements
Minimum capital investment amounts are 1/3 lower ($13.33/sf; $40/sf; $26,66; $80/sf) in Garden State Growth Zones and in eight South Jersey counties: Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Ocean, and Salem.
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.
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.
All projects must meet Green Building Requirements. For guidance on these program requirements, please review the Green Building Standards. For questions regarding these requirements, please contact your EDA Business Development Officer.
Within 12 months (24 months if new construction) following the date of application approval by the EDA, 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 EDA in its sole discretion, EDA’s approval of the tax credits shall expire if the progress information is not received within the required time period.
Enter into any construction contracts associated with the project using “prevailing wage” labor rates and affirmative action requirements.
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.
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 EDA Board.
For projects with outstanding commitments under other EDA 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 EDA Business Development Officer.
||($/Square Foot of Gross Leasable Area)
|Industrial, Warehousing, Logistics and R&D – Rehabilitation Projects
|Industrial, Warehousing, Logistics and R&D – New Construction Projects
|Other – Rehabilitation Projects
|Other – New Construction Projects
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 EDA 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 1/10th total actual certified credit amount is capped at 90% of employer withholding taxes remitted from the qualified business facility for such year.
||Base Amount Per New or Retained FT Job, Per Year
||Gross Amount Cap Per New or Retained FT Job, Per Year
||Maximum Cap To be Applied by the Business Annually
||$30,000,000 ($35,000,000 – GSGZ- Camden/Atlantic City GSGZs)
|Garden State Create Zone (NJ Doctoral University)
|Urban Transit Hub Municipality
||$4,000,000 * Not more than 90% of business withholdings
|Other Eligible Area
||$2,500,000 * Not more than 90% of business withholdings
Generally applicable bonuses are listed below:
(*Summarizes bonus types most widely available.)
|Bonus Amount Per Job, Per Year
|Deep Poverty Pocket or Choice Neighborhood Transformation Plan Area
|Qualified business facility in a vacant commercial building having over one million sq. ft. of office or laboratory space available for occupancy for a period of over one year (qualified buildings listed here).
|Project location at or within a three-mile radius of the campus or satellite campus of a New Jersey college or university other than a doctoral university, and the facility is used by the business to conduct a collaborative research relationship with the college or university
|Qualified incubator facility
|Mixed-use development with mod. Income housing for min. of 20% of full-time employees.
|Transit oriented development
|Excess capital investment in industrial site for industrial use - Excludes mega projects.
|Excess capital investment in industrial site for industrial use - GSGZ projects.
|Median salary in excess of county’s existing median or in excess of municipal median for GSGZ
|Large numbers of new and retained full-time jobs:
|251 to 400
|401 to 600
|601 to 800
|801 to 1,000
|Business in a targeted industry (transportation, manufacturing, defense, energy, logistics, life sciences, technology, health, and finance)
|Exceeds LEED “Silver” or completes substantial environmental remediation
|Located in municipality in Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Ocean and Salem counties with a 2007 MRI Index greater than 465
|Located within a half-mile of any new light rail station
|Projects generating onsite solar energy of at least 1/2 of the project’s overall energy needs.
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 EDA Business Development Officer.
Fees apply and 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.
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 EDA at time of closing, EDA will not proceed with closing.
*** Applications for assistance under the Grow NJ Program 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.
* Any proposed amendments to the program rules can be found on the Proposed New Rules/Amendments page.
Other Important Program Requirements:
A number of statutory tests must be met in addition to basic eligibility and could affect the statutory tax credit award.
- Net Benefit: The project must provide a “net benefit” to the State, net of incentives, over a 20-year period, requiring an “economic impact” analysis.
- Award Limit: 90 percent of state income tax withholding for new and retained jobs in Priority Areas and Other Eligible Areas.
- Material Factor: A company’s CEO must certify that the incentives are a material factor in the company’s decision to locate in NJ, and whether existing jobs are in fact “at risk” of leaving NJ.
- Gap test for large awards: On awards in excess of $4 million/year, NJEDA is required to perform a detailed “gap analysis” to establish the minimum amount of tax credit needed to win the project. This will require a comparative cost analysis of competing out-of-state location options.
- Job Maintenance and Determining Employment Threshold: Companies are required to maintain 80 percent of project and statewide employment for 1.5x the term of the tax credit. A company’s Employment Threshold (statewide employment count) is determined at the end of the last tax period prior to credit approval.
- Eligible position or “full-time job” means a full-time position in a business in this State that the business has filled with a full-time employee. To be eligible, the employee must have his or her primary office at the qualified business facility and must spend at least 80 percent of his or her time at the qualified business facility. (Contractors, temporary, and 1099 tax filers are not eligible.)
- Prevailing Wage: All construction associated with the job creation or retention project must be done at prevailing wage labor rates.
- Green Building Requirements: Projects must meet Green Building Requirements. Go to www.njeda.com/pdfs/GreenBuildingGuidance.aspx for further details.