Grow NJ Incentive Alert: Statutory Deadline for Mega Projects is Quickly Approaching

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

If interested in learning more about Grow NJ or other economic development incentive programs, please do not hesitate to reach us by telephone at (973) 877-6984 or email at info@murphyllp.com.

MURPHY PARTNERS LLP

Murphy Partners LLP is a boutique law firm specializing in governmental affairs, economic incentive advisory, and land use and redevelopment law. Headquartered in Newark, New Jersey, the firm was founded to provide effective, efficient, and creative legal and government affairs services to meet the distinctive needs of our clients. Through the development of comprehensive legal and government affairs strategies, our team works tirelessly to create a blueprint for success and advance our clients’ interests in every matter.