Legislation creating the proposed "Grow New Jersey" business incentive program unanimously passed the Senate Economic Growth Committee (with amendments) on Monday and the Senate Budget Committee (with amendments) earlier today. A copy of the bill, as amended, is now available online at: https://www.njleg.state.nj.us/2010/Bills/S3500/3033_R1.HTM
Here is a summary of the proposed program:
* The "business facility" can be located anywhere in Planning Areas 1 and 2, areas of the Meadowlands, Highlands and Pinelands that are "targeted for development," closed military bases, and vacant commercial buildings over 400,000sf located anywhere in the State.
* Dollar Value of Grow NJ Incentive Program: Up to $50,000 per new or retained full-time job, with a possible bonus award of up to $30,000 per job, for a total stipend of up to $80,000 per job.
Details: The financial incentive, in the form of a transferrable tax credit, is $5,000 per full-time employee (new or existing) per year for up to 10 years; the business must commit to keeping that number of jobs in NJ for a period equal to 1.5 times the number of years it elects to receive the stipend. In other words, a business may obtain a maximum pay-out of $50,000 per employee by committing to maintain those job levels in NJ for at least 15 years (10x1.5). The stipend can be boosted to $8,000 per full-time employee (new or existing) per year for up to 10 years if the EDA grants a "bonus award." A bonus award will be given to the business if the business is in an industry identified by the EDA as "desirable" for the State to maintain, or if the business is relocating to a location adjacent to or within walking distance of or shuttle service to a public transit facility, or if the business creates jobs whose salaries are greater than the "average full-time salary" in NJ.