New Jersey legislation adds a new area, a Garden State Create Zone, that businesses can locate within to qualify for the highest base tax credit amount under the Grow New Jersey Assistance Program. In addition, the law adds a new bonus category that can increase the amount of the tax credit by $1,000, per job, per year.
A qualified business located within a Garden State Create Zone and used by an eligible business in a targeted industry to conduct a collaborative research relationship with a doctoral university within the zone may now qualify for the $5,000 tax base amount. The total amount of credit for each new or retained full-time job is the sum of the base amount plus various additional bonus amounts per year. Previously, only a qualified business facility located within an urban transit hub municipality or Garden State Growth Zone, or which was a mega project could qualify for the highest base amount. However, the credit amount is subject to limits. For a qualified business facility located within a Garden State Create Zone: (1) the gross amount of tax credit available for each new or retained full-time job can not exceed $12,000, per year and (2) for each application approved by the New Jersey Economic Development Authority’s board the amount of tax credits available to be applied by the business annually can not exceed $10,000,000.
“Garden State Create Zone” is now defined to mean the campus of a doctoral university, and the area within a three-mile radius of the outermost boundary of the campus of a doctoral university, according to a map appearing in the doctoral university’s official catalog or other official publication. A “doctoral university” is defined as a university located within New Jersey that is classified as a doctoral university under the Carnegie Classification of Institutions of Higher Education’s Basic Classification methodology. The definition of “targeted industry” has not been amended and still includes a transportation, manufacturing, defense, energy, logistics, life sciences, technology, health, and finance business, but excluding a primarily warehouse or distribution business.
A new $1,000 per year additional bonus amount is also now available per each new or retained full-time job for an for an eligible business in a targeted industry at a qualified business facility on the campus of a college or university other than a doctoral university, or at a qualified business facility within a three-mile radius of the outermost boundary of the campus of a college or university other than a doctoral university, which facility is used by the business to conduct a collaborative research relationship with the college or university. The boundary of the campus of a college or university is based upon a map appearing in the college’s or university’s official catalog or other official publication. A “college or university” is defined as a county college, an independent institution of higher education, a public research university, or a state college. Ch. 221 (A.B. 4432), Laws 2017, effective August 7, 2018