Expert Guest Column: Hyland Levin LLP THE NEW JERSEY ECONOMIC OPPORTUNITY ACT OF 2013 by Kenneth M. Morgan Governor Christie signed “The New Jersey Economic Opportunity Act of 2013” (the “Act”) into law on September 18th. The Act streamlines and expands tax incentive programs, encouraging job creation and capital investment in the Garden State. It offers incentives to businesses and developers and strengthens the State’s job creation and retention efforts. The Act is considered pro-business and more beneficial to South Jersey than the prior law, which favored the northern part of the State. NEW JOB CREATION INCENTIVES GROW is a tax credit program encouraging economic development and job creation. It also seeks to preserve jobs that are in danger of leaving the State. Qualifying businesses will receive an annual tax credit for up to 10 years under the Act for each full-time job created or retained in New Jersey. The amount of the per-employee tax credit depends on the location and nature of the business. A business must meet minimum capital investment and job creation/retention thresholds in order to qualify. With lower thresholds, the Act will allow smaller businesses, businesses operating in urban areas and in southern counties to benefit from the GROW program. The Act also provides preferential treatment to tech-startups, manufacturing, transportation, healthcare and finance businesses. NEW REAL ESTATE DEVELOPMENT INCENTIVES The Act also expands the ERG program, which provides incentive grants to developers facing project-financing gaps or below-market rates of return. The Act sets aside $600 million in tax credits for residential projects including $250 million earmarked for development in the southern counties. Favorable incentives are also available for projects in Camden, Passaic, Paterson and Trenton. LOCAL RESULTS The Act was credited with saving jobs at Lockhead Martin and Burlington Coat Factory in Burlington County and was a factor in Destination Maternity’s decision to move its headquarters from Philadelphia to Moorestown and its distribution operations to Florence. The Act should also help efforts to retain Subaru’s national headquarters in Camden County. Kenneth M. Morgan, a Partner at Hyland Levin LLP in Marlton, concentrates his practice on real estate leasing, development and finance, business, real property taxation, business planning and tax, and trusts and estates. He may be contacted at morgan@hylandlevin or 856.355.2900.
Posted on: Fri, 25 Oct 2013 12:16:48 +0000
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