Month: May 2017

Businesses seeking an incentive award under Grow NJ’s “Mega Project” category must apply by September 18, 2017. The application must be presented to the NJEDA Board no later than December 2017.

Created under the Economic Opportunity Act of 2013, the Grow NJ Assistance Program is the State’s main job creation and business retention incentive program. The purpose of the program is to “encourage economic development and job creation and to preserve jobs that currently exist in New Jersey but which are in danger of being relocated outside of the State.” N.J.S.A. 34:1B-244(a).

Determination of the size of an award is based on the project’s location, the corresponding capital investment, and the jobs created or retained at a qualified business location. Applicants must demonstrate that the project will yield a net positive benefit to the State and must indicate that the award of tax credits under the program is a material factor in the business decision to make a capital investment and locate in the State. N.J.S.A. 34:1B-244(b)(3).

The base tax credit amount for a project meeting the statutory definition of a Mega Project is $5,000 per job, per year, for each year of eligibility (up to a 10 year term). To qualify as a Mega Project, the project must fall into one of the following categories:

1. A qualified business facility located in a port district housing a business in the logistics, manufacturing, energy, defense, or maritime industries, either: (i) Having a capital investment in excess of $20,000,000, and at which more than 250 full-time employees of such business are created or retained; or (ii) at which more than 1,000 full-time employees of such business are created or retained;

2. A qualified business facility located in an aviation district housing a business in the aviation industry, in a Garden State Growth Zone, or in a priority area housing the United States headquarters and related facilities of an automobile manufacturer, either: (i) Having a capital investment in excess of $20,000,000, and at which more than 250 full-time employees of such business are created or retained; or (ii) at which more than 1,000 full-time employees of such business are created or retained;

3. A qualified business facility located in an urban transit hub housing a business of any kind, having a capital investment in excess of $50,000,000, and at which more than 250 full-time employees of a business are created or retained;

4. A project located in an area designated in need of redevelopment, pursuant to P.L. 1992, c. 79 (N.J.S.A. 40A:12A-1 et seq.), prior to the enactment of P.L. 2014, c. 63, within Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Ocean, or Salem counties having capital investment in excess of $20,000,000, and at which more than 150 full-time employees of a business are created or retained; or

5. For applications submitted after July 1, 2016, a qualified business facility primarily used by a business principally engaged in research, development, or manufacture of a drug or device, as defined in N.J.S.A. 24:1-1, or primarily used by a business licensed to conduct a clinical laboratory and business facility pursuant to the “New Jersey Clinical Laboratory Improvement Act,” P.L. 1975, c. 166 (N.J.S.A. 45:9-42.26 et seq.), either: (i) Having a capital investment in excess of $20,000,000, and at which more than 250 full-time employees of such business are created or retained; or (ii) at which more than 1,000 full-time employees of such business are created or retained.

N.J.A.C. 19:31-18.2

Murphy Partners LLP is pleased to announce that Roosevelt J. Donat has been named Special Counsel and Director of Government Affairs. Mr. Donat has extensive experience in the areas of government relations, law, and regulatory matters, in Newark and throughout New Jersey and New York.

“Roosevelt is an integral part of our growing team. He is a dynamic attorney and government affairs professional, and his relationships throughout the region are extensive. His ability to quickly analyze complex policy issues, while understanding the underlying political implications, will be an immediate value to our current and future clients,” says Kellen F. Murphy, the firm’s managing partner.

Roosevelt formerly served as the Director of Government Relations and Strategic Planning for Brick City Development Corporation (the predecessor to the Newark Community Economic Development Corporation). In that role, he was responsible for developing the organization’s political engagement strategy with federal, state, and local elected officials, and business engagement strategy with corporations. Roosevelt also advised the organization’s department heads on the impact of proposed legislation and determined an appropriate response to that legislation. He regularly appeared before the Newark City Council and liaised with local and state officials to articulate, promote, and protect the interests of Brick City Development Corporation.

After Brick City Development Corporation, Roosevelt worked in the New Jersey State Assembly Majority Office before he was recruited to Wall Street, where he served in the Global Legal Compliance and Regulatory Office at American International Group (AIG) -the world’s largest insurance organization. In this position, he was critically involved in the structuring, negotiating, and execution of a wide variety of domestic and international transactions and other business arrangements. On the government front, Roosevelt provided counsel to senior management, global business and legal functions, and operating companies with respect to insurance regulatory matters, and regularly liaised with Department of Insurance stakeholders from various jurisdictions.

On Thursday, May 11, 2017, the New Jersey Economic Development Authority (NJEDA) held its monthly board meeting in Trenton. Among the actions taken, the Board considered applications under the Grow New Jersey Assistance Program (Grow NJ). The Board also considered the issuance of bonds, loans, and guarantees for multiple applicants.

Grow New Jersey Assistance Program

The Board approved five applications under the Grow NJ Program, totaling over $74,000,000 in tax credits. Once certified, the five projects will bring jobs and capital investment to Camden, Lakewood, Hanover Township, and Woodcliff Lake.

Created under the Economic Opportunity Act of 2013, Grow NJ is the State’s main job creation and business retention incentive program. The purpose of the program is to “encourage economic development and job creation and to preserve jobs that currently exist in New Jersey but which are in danger of being relocated outside of the State.” N.J.S.A. 34:1B-244(a).

Determination of the size of an award is based on the project’s location, the corresponding capital investment, and the jobs created or retained at a qualified business location. Applicants must demonstrate that the project will yield a net positive benefit to the State and must indicate that the award of tax credits under the program is a material factor in the business decision to make a capital investment and locate in the State. N.J.S.A. 34:1B-244(b)(3).

The Grow NJ Program has been wildly popular and incredibly successful. Since its implementation, 233 projects have received awards, totaling over $4.4 billion in tax credits. Once certified, the 233 projects will drive over $3.9 billion in private capital investment, create over 29,000 new jobs, and retain over 28,000 jobs at risk of leaving the State.

On Monday, the New Jersey Economic Development Authority (NJEDA) announced that it will begin accepting applications for the 2017 Technology Business Tax Credit Transfer (NOL) Program.

Established under the New Jersey Emerging Technology and Biotechnology Financial Assistance Act (N.J.S.A. 34:1B-7.37), the Program allows unprofitable New Jersey-based technology and biotechnology companies with fewer than 225 U.S. employees to sell a percentage of unused New Jersey net operating losses and research and development tax credits to unrelated profitable corporations. N.J.A.C. 19:31-12.1-12.8.

The Program is authorized to provide $60,000,000 of tax benefits over each State fiscal year, of which $10,000,000 is set aside for businesses located in Innovation Zones (Newark, Camden, and the Greater New Brunswick Area).  N.J.A.C. 19:31-12.7(a).

Companies interested in apply for the Program must submit an application by June 30, 2017.

Today, Governor Chris Christie signed into law a bill revising the “New Jersey Angel Investor Tax Credit Act.” (See P.L. 2017, c. 40). The legislation has been revised to provide tax credits for qualified investments in New Jersey emerging technology business holding companies. Previously, holding companies were ineligible to receive investments under the program. The legislation further provides direction for the distribution of tax credits allowed for qualified investments by New Jersey S corporations.

The New Jersey Angel Investor Tax Credit Program, which is administered by the New Jersey Economic Development Authority (“NJEDA”), allows for a tax credit against the corporation business tax and the gross income tax for qualified investments in a New Jersey emerging technology business. Under the Program, the tax credit is equal to 10 percent of the qualified investment made by the taxpayer, up to a maximum of $500,000 for the tax year for each qualified investment made by the taxpayer. The NJEDA is permitted to approve $25 million per calendar year in connection with qualified investments.

The legislation takes effect immediately, but applies retroactively to qualified investments made for tax years and taxable years beginning on or after January 1, 2012.