New Jersey Direct Financial Incentives 2012
New Jersey's economic development, finance, and tax organizations provide a range of incentive programs to initiate new business and commercial investment. Specific programs include bond financing and a brownfields remediation program.
The Energy Efficiency and Conservation Block Grant (EECBG) Rebate Program provides supplemental funding up to $20,000 for eligible New Jersey local government entities to lower the cost of installing energy conservation measures. Funding for the EECBG Rebate Program is provided through the American Recovery and Reinvestment Act (ARRA).
Energy Sales Tax Exemption for Certain Counties
Manufacturing businesses in Salem County may be eligible for energy sales tax exemption for the retail sale, transmission or distribution of electricity and natural gas.
Federal Historically Underutilized Business Zone (HUBZone) Empowerment Contracting Program
The HUBZone Empowerment Contracting Program provides federal contracting preferences to businesses that obtain HUBZone certification in part by employing staff who live in a HUBZone. The company must also maintain a "principal office" in one of these specially designated areas. New Jersey's HUBZones are located in over 60 cities and towns throughout 20 counties.
Foreign Trade Zones
Foreign Trade Zones allow companies to bring foreign goods or raw materials for manufacturing and/or assembling into the United States without formal customs entry or payment of customs duties and government excise taxes until products leave the zone. If the final product is exported from the United States, no U.S. customs duty or excise tax is levied. If the final product is entered into the commerce of the United States, fees are only due at the time of transfer on the product or its parts, whichever is lower. New Jersey has five foreign trade zones strategically located throughout the state: Morris County, Port Newark/Port Elizabeth Marine Terminal, South Jersey Port in Camden, Mercer County Airport and Lakewood Development Corporation.
Fund for Community Economic Development
The Fund for Community Economic Development provides loans and loan guarantees to support community and economic development initiatives in New Jersey's urban centers. This program offers three forms of assistance: up to a $750,000 loan for lenders to support community-based organizations and projects; up to $50,000 for feasibility studies and other pre-development costs; and up to $1.25 million for real estate projects to fill financing gaps.
Hazardous Discharge Site Remediation Fund (HDSRF)
Loans, grants and matching grants are available to public, private and not-for-profit entities for the investigation and/or remediation of known or suspected contaminated sites.
International Trade Assistance
Whether you're a New Jersey company looking to do business globally or an international company interested in establishing a business in the state, there are a number of resources that are available to assist you. New Jersey can help your company access export and import consulting, identify buyers and new international markets for your products or services, find partners for joint ventures and strategic alliances and take advantage of financing opportunities and site selection services for companies seeking a presence in the state.
Literacy Skills Grants
The New Jersey Department of Labor & Workforce Development offers competitively awarded training funds to help businesses improve the basic skills of incumbent workers.
Local Government Energy Audit
Under this New Jersey Board of Public Utilities (BPU) program, participants select from a list of pre-qualified auditing firms who will follow the strict parameters of New Jersey's Clean Energy Program™ and deliver an investment-grade audit to identify cost-effective measures for saving energy. The program will subsidize 100 percent of the cost of the audit as long as recommended measures totaling at least 25 percent of the audit's costs are implemented. Eligible facilities include, but are not limited to, offices, courtrooms, town halls, police and fire stations, sanitation buildings, transportation structures, schools and community centers. All local governments, New Jersey state colleges or universities, and 501(c)(3) not-for-profit agencies located within the service territory of at least one of New Jersey's public utilities are eligible.
Main Street Business Assistance Program
A key component of the state's economic stimulus program is the Main Street Business Assistance Program. This program provides financial support to commercial banks in New Jersey to assist in offering loans and guarantees to businesses with projects in New Jersey. Main Street financing can be used for fixed assets, refinancing of debt, and working capital. Specifically, the program offers: loan participations up to $1 million for fixed assets and $750,000 for working capital; loan guarantees up to $2 million for fixed assets and $1.5 million for working capital; and line of credit guarantees up to $500,000 through a New Jersey Economic Development Authority (EDA) Premier Lender. Main Street is available to small or mid-sized businesses or not-for-profits operating within New Jersey for at least two years prior to application date.
Manufacturing Equipment and Employment Investment Tax Credit Program
Investments in qualified manufacturing equipment may be eligible for the Manufacturing Equipment and Employment Investment Tax Credit. The program offers a tax credit for the tax year in which the investment was made based on the cost of the equipment, as well as each of the following two tax years based on the average increase in New Jersey employees.
Municipal Landfill Closure and Remediation Reimbursement Program
An eligible developer seeking financial assistance in the closure, remediation and redevelopment of municipal landfill sites in New Jersey may be eligible for reimbursement of 75 percent of the closure or cleanup costs.
New Jersey Business Growth Fund
Creditworthy companies that are retaining or creating jobs in New Jersey may be eligible for up to a $3 million PNC Bank loan with a 25 percent or 50 percent EDA guarantee. The funding can be used for machinery and equipment or real estate, with loan terms of up to five years for machinery and equipment and up to five years for owner-occupied real estate purchases. Companies must commit to creating one full-time job in the state for every $50,000 of guarantee provided by the EDA, with the exception of manufacturers, which must commit to maintaining one existing full-time job per $50,000.
New Jersey Manufacturing Extension Program (NJMEP)
NJMEP assists manufacturing companies to become more productive, profitable and globally competitive. The program offers technical and management solutions to competitive problems and represents a valuable resource for manufacturing businesses.
New Jersey SmartStart Buildings® Program
The New Jersey SmartStart Buildings Program provides design support for large development projects (buildings over 50,000 square feet); technical assistance for smaller projects (buildings under 50,000 square feet); and financial incentives for the purchase and installation of energy efficiency measures. Eligible equipment includes heating and cooling systems such as electric chillers, gas cooling, electric unitary HVAC, ground source heat pumps and gas heating and water heating; lighting and lighting controls; motors and variable frequency drives; and a custom measures track that provides incentives for innovative measures that are proven to be cost-effective.
New Jobs Investment Tax Credit
The New Jobs Investment Tax Credit is available for taxpayers who invest in new or expanded business facilities that create new jobs in New Jersey. The investment must create at least five new jobs for small or mid-size businesses or 50 new jobs for larger business taxpayers, and must meet the median annual compensation requirement for the current tax year.
Pay for Performance
Pay for Performance is a New Jersey Board of Public Utilities (BPU) program directed at large facilities in a manner that directly links incentives to energy savings in a whole-building approach. The existing buildings component of the program is designed for commercial, industrial, and multifamily buildings with an annual peak demand in excess of 200 kW. The new construction component targets buildings with 50,000 square feet or more of planned space, as well as buildings undergoing substantial renovation. Pay for Performance relies on a network of Program Partners that provides technical services under direct contract to building owners. These Partners develop an Energy Reduction Plan for each project that includes technical components typically found in a traditional energy audit, a financial plan for funding the energy efficient measures and a construction schedule for installation. Three incentives are awarded as program milestones are completed with the first incentive paid at the completion of the Energy Reduction Plan, the second paid once all measures are installed, and the final incentive paid following a comprehensive verification report that proves the savings targets have been met or exceeded.
In addition, Pay for Performance projects that incorporate Combined Heat & Power (CHP) will be eligible for additional incentives up to $1 million. The annual CHP solicitation has been eliminated and customers are now able to apply for CHP incentives on a year-round basis (funding permitted). To qualify, the facility must be located in New Jersey, and the customer must purchase electricity from the utility grid. A minimum overall annual system efficiency rating of 60 percent, based on total energy input and total utilized energy output, must be met. Additional requirements are specified as part of the CHP Application Package within the Pay for Performance Program description.
New Jersey's Business Action Center can work as an extension of your team to help navigate the regulatory, permitting and compliance process inherent in relocation and expansion projects.
Petroleum Underground Storage Tank Program - Leaking Tanks Commercial & Residential
Grant and loan funding is available to business owners and residential property owners that must upgrade, close and remediate discharge from petroleum underground storage tanks. Applicants must have less than 10 tanks on site and net worth must not exceed $2 million.
Petroleum Underground Storage Tank Program - Non-Leaking Tanks Commercial, Residential & Not-for-Profit
The Petroleum Underground Storage Tank Program provides grants to business owners and residential property owners who have less than 10 tanks on site and are required by law to upgrade, close and remediate discharge from those tanks.
The New Jersey Department of Labor and Workforce Development offers assistance recruiting qualified workers.
Registered Apprenticeship Incentive Program
Employers with up to 450 employees may be eligible for financial resources to upgrade the skills of employees working in the direct production of goods. One-time grants of up to $5,000 are available for each employee who completes 52 weeks of employment as an apprentice under the Registered Apprenticeship Incentive Program.
Renewable Energy Incentive Program (REIP)
Residents, local government officials, facility managers or developers building onsite renewable energy projects using solar, wind and bio-power technologies may be eligible for financial incentives and support services under the Renewable Energy Incentive Program. Incentives vary according to the type of project, type of building, type of equipment and other factors. Generally, residential, government and municipal solar photovoltaic projects up to 50 kW may be eligible for rebates up to $0.75/watt of capacity, up to 30 kW. Wind systems may be eligible for up to $3.20/kWh of capacity, and sustainable biomass systems may be eligible for up to $5/watt of capacity. REIP is part of New Jersey's Clean Energy Program™ administered by the New Jersey Board of Public Utilities (BPU).
Research and Development Tax Credit
Businesses claiming the federal research and development tax credit for a new or improved product, process or software program qualify for the state's Research and Development Tax Credit. The program provides a credit of 10 percent of the excess research expenses over a base year amount plus 10 percent of basic research payments, as taken under the federal tax credit. Unused credits may be sold under the Technology Business Tax Certificate Transfer Program.