New Jersey Incentives and Workforce Development Guide
This incentives guide is brought to you by Business Facilities LiveXChange, the only event that has been designed for corporate executives and business owners who are responsible for their companies' site selection projects. Click here to learn more or register for the invitation-only site selection conference.
For a list of New Jersey economic development agencies that can help with the site selection process, visit our Online Site Seekers’ Guide.
New Jersey Partnership for Action: Created by Governor Chris Christie and led by Lt. Governor Kim Guadagno, the Partnership for Action is a four-pronged public-private approach for all economic development activity in New Jersey and the starting point for all initiatives, policies and efforts to grow New Jersey’s economy and create quality, sustainable jobs in our communities. The four elements of the Partnership include:
- Choose New Jersey, an independently funded and operated 501(c)(3) nonprofit corporation created to encourage and nurture economic growth throughout New Jersey;
- the Business Action Center, which reports directly to the Lt. Governor and provides the business community with a single point of contact, applying a proactive, customer-service approach to businesses’ interactions with State government;
- the New Jersey Economic Development Authority (EDA), serving as the state’s financing arm; and
- the office of the Secretary of Higher Education which coordinates, plans, and develops policies, and advocates for the state’s higher education system.
Premier Lender Program: EDA partners with Premier Lender banks to provide small businesses with low cost financing that includes EDA loan participation and/or guarantees. Businesses can use this financing for fixed assets, working capital to meet operating needs, and/or the refinancing of other bank debt. In partnership with EDA Premier Lender banks, EDA can provide the following loan participations/guarantees:
- Up to 50% of the bank loan amount for fixed asset loans; maximum EDA participation of $2,000,000; maximum EDA guarantee of $1,500,000; total EDA exposure not to exceed $2,750,000.
- Up to 50% of the bank loan amount for working capital loans; maximum EDA participation of $750,000; maximum EDA guarantee of $1,500,000; total EDA exposure not to exceed $2,250,000.
Direct Loans for Small and Mid Sized Businesses: New Jersey businesses in need of financing and committed to job creation/retention may be eligible for up to $2 million for fixed assets, or up to $750,000 for working capital for up to 10 years, with the option of either a fixed or variable below-market interest rate.
Small Business Fund: An expedited approval process provides financial assistance to qualified businesses through direct loans or guarantees, with the choice of a variable or fixed interest rate. A small, minority-owned or women-owned business in NJ in operation for at least one full year or not-for-profit corporation in operation for at least three full years may qualify for up to $500,000 for credit scores greater than or equal to 680; and up to $300,000 for Not-for-Profits with 1.1X historical debt service coverage. It may be used for fixed assets and working capital.
Bond Financing: A creditworthy manufacturing company, a 501(c)(3) not-for-profit organization or an exempt facility in New Jersey can apply for long-term financing under the Bond Financing Program. $500,000 to $10 million in tax-exempt bonds for for-profit companies, with both a fixed or variable interest rate, and terms up to 20 years for real estate and 10 years for equipment. Or, $500,000 with no dollar limit in tax-exempt bonds for qualified not-for-profit organizations.
- Tax-exempt bonds for eligible for-profit companies can be used to finance capital improvements and expansions, including real estate acquisitions, new equipment, machinery, building construction and renovations.
- Tax-exempt bonds for not-for-profit organizations seeking capital to expand community services can be used to finance land and building acquisitions, new construction and renovations, equipment purchases, debt refinancing and working capital.
- Government tax-exempt bonds can be used for projects that are owned and operated for the benefit of local, county and state government bodies.
New Jersey Business Growth Fund: A joint program of the EDA and PNC Bank. Small or mid-sized companies that are creating or retaining jobs in NJ can apply for financing of up to a $3 million bank loan with a 25% or 50% EDA guarantee. The maximum EDA guarantee is $1.5 million. It can be used for the funding of real estate or equipment. Companies must commit to create one full-time job in NJ for every $50,000 of guarantee provided by the EDA with the exception of manufacturers, which must commit to maintain one existing full-time job in New Jersey per $50,000.
Edison Innovation Clean Energy Manufacturing Fund (CEMF): Provides support for manufacturers that need to identify a manufacturing site, perform site improvements, construct a facility and/or purchase equipment. Organizations awarded a grant under CEMF are automatically certified as a NJ manufacturer through New Jersey’s Renewable Energy Manufacturing Incentive (REMI) program. A qualified manufacturer of Class I renewable energy or energy efficiency systems, products or technologies may be eligible for up to $3.3 million in grants and loans for project assessment and design, and project construction and operation associated with a new manufacturing line or the material expansion of an existing line of a New Jersey manufacturing facility.
Edison Innovation Fund: The Edison Innovation Fund seeks to develop, sustain, and grow technology and life sciences businesses that will lead to well-paying job opportunities for New Jersey residents. The Edison Innovation Fund is structured as subordinated convertible debt and benefit technology and life sciences companies by providing growth capital to directly fund uses such as hiring key staff, product marketing and sales.
Grow New Jersey Assistance Program (Grow NJ): The main job creation incentive program. Base tax credits under the new Grow NJ program range from $500 to $5,000 per job, per year with bonus credits ranging from $250 to $3,000 per job, per year. The geographic boundaries have been extended, and capital investment and employment eligibility requirements have been reduced.
Economic Redevelopment and Growth Program (ERG): The State’s key developer incentive program. For commercial projects, an incentive grant reimbursement of up to 20% of total project cost, with additional grant funding of up to 40% possible based on project type and/or location. For residential projects, a tax credit of up to 20% of total project cost and a bonus of an additional 10% (for a total of 30%) if the project constructs and reserves at least 10% of the residential units for moderate income housing.
Angel Investor Tax Credit Program: The New Jersey Angel Investor Tax Credit establishes credits against corporation business or gross income taxes for the purposes of stimulating investment in New Jersey emerging technology businesses. Taxpayers, filing in New Jersey, who invests in calendar year 2012 or after, in a qualifying New Jersey emerging technology business with fewer than 225 employees, at least 75% of whom work in New Jersey, may be eligible for tax credits for up to 10% of a qualified investment in an emerging technology business with a physical presence in New Jersey and that conducts research, manufacturing or technology commercialization in the state. EDA approved the first investment on 8/13/2013.
Technology Business Tax Certificate Transfer (NOL) Program: The Technology Business Tax Certificate Transfer Program enables technology and biotechnology companies that have promise but are not currently realizing a profit to turn net operating losses and R&D tax credits into capital. Net operating losses and R&D tax credits may be sold for at least 80% of their value, up to a maximum lifetime benefit of $15 million per business.