Frequently Asked Questions (FAQs)

1. Grow New Jersey Assistance Program

Grow NJ is a powerful job creation and retention incentive program that strengthens New Jersey’s competitive edge in the increasingly global marketplace. Businesses that are creating or retaining jobs in New Jersey may be eligible for tax credits ranging from $500 to $5,000 per job, per year; with bonus credits ranging from $250 to $3,000 per job, per year (award amounts vary based on applicable criteria.)

Dollar Amount:

Award amounts vary based on applicable criteria. Please see “Base Calculation of Tax Credits” and “Bonus Criteria” below for more information

Uses:
Corporate business and insurance premiums tax credits

Benefits:
Powerful job creation and retention incentive program that strengthens New Jersey’s competitive edge against tax incentive programs in surrounding states

Eligibility:
Please see program details below for full eligibility criteria. Please see mapping tool to determine if your project location is eligible.

Eligibility Details:
In order to qualify for consideration for Grow NJ, a company must:

1. Locate the project in a Qualified Incentive Area, which is currently defined as one of the following. (See the Mapping Tool link at the bottom of this page for assistance in determining whether the project address is located in an eligible area.)

• Urban Transit Hub Municipality
• Distressed municipality
• Garden State Growth Zones (GSGZ) – The four New Jersey cities with the lowest median family income based on the 2009 American Community Survey from the US Census
• (Camden / Trenton / Paterson / Passaic); and a municipality which contains a Tourism District as established pursuant to section 5 of P.L.2011, c.18 (C.5:12-219) and regulated by the Casino Reinvestment Development Authority (Atlantic City).
• Garden State Create Zone – at or within a three-mile radius of the outermost boundary of the campus (or satellite campus) of a New Jersey doctoral university (Montclair State University, New Jersey Institute of Technology, Princeton University, Rowan University, Rutgers-New Brunswick, Rutgers-Newark, Seton Hall University and Stevens Institute of Technology.) Please see mapping tool or campus maps at the bottom of the page to determine if your project location is eligible, and please see list of contacts at the various doctoral universities to contact for more information on pursuing collaborative research opportunities with a particular school.
***To be considered a Garden State Create Zone, in addition to being located in proximity to a NJ doctoral university, the business must be in a targeted industry and the facility used by the business to conduct a collaborative research relationship with that NJ doctoral university. A collaborative research agreement between a Grow NJ applicant and the University will be reviewed for program compliance based on Collaborative Research Agreement Qualification Worksheet. Any terms beyond those outlined on the worksheet are ultimately up to the discretion of the University and corporate partner. The collaboration agreement should be entered into subsequent to EDA’s award approval, but prior to any certification of funds being award.
• Projects in a priority area (see Program Rules below for more information)
• Other eligible areas not located within a distressed municipality or priority area, including an Aviation District; Planning Areas 1, 2 or 3 pursuant to State Planning Act; certain portions of Meadowlands, Pinelands and Highlands; certain portions of Planning Areas 4A, 4B & 5; and the “sports complex” under the jurisdiction of the New Jersey Sports and Exposition Authority.

2. Meet or exceed the minimum employment and capital investment requirements, as outlined below:

Minimum Full-Time Employment Requirements

Minimum Capital Investment Requirements

3. Demonstrate that the award of the tax credit is a “material factor” in the company’s decision to create or retain at least the minimum number of full-time jobs unless the project is located in a GSGZ that qualifies under the Municipal Rehabilitation and Economic Recovery Act (MRERA) (Camden), or which contains a Tourism District established by section 5 of P.L.2011, c.18 (C.5:12-219) and regulated by the Casino Reinvestment Development Authority (Atlantic City), in which case, demonstrate that the award of tax credits is a material factor in the business decision to make a capital investment and locate at least the minimum number of full-time jobs in such GSGZ.

4. Demonstrate that the capital investment and the resultant creation of eligible positions will yield a net positive benefit of at least 110 percent of the requested tax credit amount, or, for a project in a GSGZ that qualifies under the MRERA (Camden), 100 percent of the requested tax credit prior to factoring in the tax credit.

5. All projects must meet Green Building Requirements. For guidance on these program requirements, please click here. For questions regarding these requirements, please contact your EDA Business Development Officer.

6. Within 12 months (24 months if new construction) following the date of application approval by the EDA, each approved business must submit progress information indicating that the business has site plan approval, committed financing for and site control of the qualified business facility. No document evidencing site control shall have been executed prior to Authority Board approval unless it was disclosed prior to said approval and deemed acceptable regarding the required material factor from #3 above. Unless otherwise determined by EDA in its sole discretion, EDA’s approval of the tax credits shall expire if the progress information is not received within the required time period.

7. Enter into any construction contracts associated with the project using “prevailing wage” labor rates and affirmative action requirements.

8. Maintain the project and related employment at the project site for 1.5 times the period in which the business receives the tax credit commencing upon Authority acceptance of the project completion certifications.

9. Businesses receiving tax credits must maintain a minimum of 80% of its full-time New Jersey workforce from the last tax period prior to the grant approval and 80% of the number of new and retained full-time jobs at the qualified business facility specified in the incentive agreement. If the full-time New Jersey workforce or the number of full-time employees at the qualified business facility falls below the corresponding 80% threshold, the business will forfeit its tax credit amount for that tax period and each subsequent tax period until the first tax period for which the full-time New Jersey workforce or full-time jobs at the qualified business facility is restored back to the minimum level and documentation reflecting such has been reviewed and approved by the EDA Board.

10. For projects with outstanding commitments under other EDA incentive programs, the applicant may unwind their current commitment in certain circumstances and under certain conditions to take advantage of the Grow NJ Program. For questions regarding this process, please contact your EDA Business Development Officer.

Tax Credit Amounts Available:

Qualified eligible businesses receive tax credits per job, per year for a period of up to ten years for each new or retained full-time job to be located at the qualified business facility. The maximum amount of the tax credits to be applied by the business annually is generally determined as follows: a gross amount per job/per year is obtained by adding all applicable bonuses to the base amount; the gross amount is then subject to a cap. 100% of the gross amount per new job is allowed, whereas (subject to certain exceptions) retained jobs receive the lesser of the capital investment divided by 10 divided by the sum of the new and retained full-time jobs in the project or 50% of the gross amount per retained job is allowed. Finally, the total amount of annual tax credits is subject to a maximum cap.

In addition, for each application for tax credits in excess of $4 million annually, the amount of tax credits available to be applied by the business annually shall be the lesser of the permitted statutory maximum amount or an amount determined by the EDA necessary to complete the project, which shall be determined through staff analysis of all locations under consideration by the business and all lease agreements, ownership documents, or substantially similar documentation for the business’s current in-State locations and potential out of State location alternatives.

Base Calculation of Tax Credits

Generally applicable bonuses are listed below:

Bonus Criteria

A different tax credit award determination may apply if the project is located in a GSGZ that qualifies under the MRERA (currently Camden) and will create 35 or more jobs new to Camden and make a capital investment of at least $5 million. If so, please contact your EDA Business Development Officer.

Fees apply and all fees are non-refundable except for the approval fee due prior to approval, which shall be refunded if the Authority does not approve the tax credit.

Division of Taxation Tax Clearance Certificate required. Certificates must be requested through the State of New Jersey’s Premier Business Services (PBS) portal online.

• Under the Tax & Revenue Center, select Tax Services, then select Business Incentive Tax Clearance.
• If the applicant’s account is in compliance with its tax obligations and no liabilities exist, the Business Incentive Tax Clearance can be printed directly through PBS.

Please note: It is the applicant/client’s responsibility to maintain a current and clear tax clearance certificate. If a current and clear certificate is not evidenced to EDA at time of closing, EDA will not proceed with closing.

*** Applications for assistance under the Grow NJ Program must be submitted no later June 30,
2019, except that businesses seeking an award as a Mega Project must apply by September 18, 2017.

Additional terms and conditions pursuant to P.L. 2013, c. 161, as amended, and implementing regulations at N.J.A.C. 19:31-18.1 et seq. apply.

Median Annual Salaries

Mapping Tool

TOD Bus Terminal List

Buyers List

Reporting and Certification Forms

Courtesy Copy of Current Grow NJ Program Rules, N.J.A.C. 19:31-18.1 through 18.19 *

Courtesy Copy of Grow New Jersey Assistance Act, N.J.S.A. 34:1B-242 et seq.

Grow NJ Policies & Procedures Webinar Presentation - 8/15/2017

Campus Map – Montclair State University

Campus Map – New Jersey Institute of Technology

Campus Map – Princeton University

Campus Map – Rowan University

Campus Map – Rutgers University – New Brunswick

Campus Map – Rutgers University – Newark

Campus Map – Seton Hall University

Campus Map - Stevens Institute of Technology

Collaborative Research Agreement Qualification Worksheet

Garden State Create Zone - NJ Doctoral University Contact List

* Any proposed amendments to the program rules can be found on the Proposed New Rules/Amendments page.

Other Important Program Requirements:

A number of statutory tests must be met in addition to basic eligibility and could affect the statutory tax credit award.

• Net Benefit: The project must provide a “net benefit” to the State, net of incentives, over a 20-year period, requiring an “economic impact” analysis.
• Award Limit: 90 percent of state income tax withholding for new and retained jobs in Priority Areas and Other Eligible Areas.
• Material Factor: A company’s CEO must certify that the incentives are a material factor in the company’s decision to locate in NJ, and whether existing jobs are in fact “at risk” of leaving NJ.
• Gap test for large awards: On awards in excess of $4 million/year, NJEDA is required to perform a detailed “gap analysis” to establish the minimum amount of tax credit needed to win the project. This will require a comparative cost analysis of competing out-of-state
  location options.
• Job Maintenance and Determining Employment Threshold: Companies are required to maintain 80 percent of project and statewide employment for 1.5x the term of the tax credit. A company’s Employment Threshold (statewide employment count) is determined at the end of the last tax period prior to credit approval.
• Eligible position or “full-time job” means a full-time position in a business in this State that the business has filled with a full-time employee. To be eligible, the employee must have his or her primary office at the qualified business facility and must spend at least 80 percent of his or her time at the qualified business facility. (Contractors, temporary, and 1099 tax filers are not eligible.)
• Prevailing Wage: All construction associated with the job creation or retention project must be done at prevailing wage labor rates.
• Green Building Requirements: Projects must meet Green Building Requirements. Go to http://www.njeda.com/pdfs/GreenBuildingGuidance.aspx for further details.

2. Economic Redevelopment and Growth (ERG) Grant Program

Administered by the New Jersey Economic Development Authority (EDA), the purpose of these incentive grants is to allow developers and municipalities to capture up to 75 percent of new state and local incremental taxes derived from a project’s development to help fill financing gaps which represent a part of the total redevelopment project cost for which the developer cannot find other financing. The term of a State and local redevelopment incentive grant agreement can extend for up to 20 years; however, the combined amount of the reimbursements cannot exceed 20 percent of the total cost of the project, exclusive of publically-owned infrastructure; and, a developer seeking an incentive grant is required to contribute its own capital for at least 20 percent of the project’s total cost.

Please note that certain allocations of tax credits available through the residential component of the Economic Redevelopment and Growth (ERG) Program are currently oversubscribed. As a result, EDA is not accepting applications for residential ERG projects in areas of the state where tax credit allocations are oversubscribed. Please contact Customer Care at 609-858-6767 or your Community Development Officer for more information prior to submitting an application.*

For residential ERG projects in areas of the state where tax credits remain available, EDA will continue to accept applications. Consideration of all project applications, including those already in-house, will be based on the readiness of the project to proceed. Readiness of a project to proceed is evaluated by EDA based on the applicant’s ability to provide a completed application including, but not limited to: the demonstration of evidence to obtain financing; documentation to support that the project has received or is about to receive necessary governmental approvals; and evidence that the development team has the ability to complete the project within the statutory deadline of July 28, 2019. Please contact Customer Care or your Community Development Officer for a current status.

The Economic Redevelopment and Growth (ERG) Program is an incentive for developers and businesses to address revenue gaps in development projects, defined as having insufficient revenues to support the project debt service under a standard financing scenario. It can also apply to projects that have a below market development margin or rate of return. The grant is not meant to be a substitute for conventional debt and equity financing, and applicants should generally have their primary debt financing in place before applying. In order for a project to be approved, it needs to undergo a rigorous analysis of the sources and uses of funds, construction costs and projected revenues. All of these metrics are compared to industry standard measures, many of which are available to view in the supporting documents below. For information regarding a local incentive grant under the ERG Program, please consult with the municipality.

If you are:
A developer with a commercial, residential, or mixed use parking project located in areas targeted for growth in New Jersey. See Definitions and Mapping Tool links at the bottom of the page for use in determining location eligibility.

Residential Projects – redevelopment projects that are predominantly residential and include multi-family residential units for purchase or lease, or dormitory units for purchase or lease

Commercial Projects – redevelopment projects that are predominantly commercial and include retail, office and/or industrial uses for purchase or lease.

Mixed Use Parking Projects – redevelopment projects consisting of a building or structure, of which the parking component is 51 percent or more of: the total square footage of the entire project; the estimated revenues of the entire project; or the total construction cost of the entire project.

You can apply for:

Residential Projects – Residential projects that do not generate tax revenues can qualify for tax credits that can be assigned to lenders for project financing. A tax credit of up to 20% of total project cost, with additional tax credit amounts* possible based on project type and/or location listed below. Residential projects have an affordable housing requirement. (See affordable housing requirement below.) Please note that aggregate tax credits available to qualified residential and mixed-use parking projects under ERG are limited to $718 million.

Commercial Projects – An incentive grant reimbursement of up to 20% of total project cost, with additional grant funding* possible based on project type and/or location listed below. The project is provided the maximum eligible award subject to the requirements, caps and limitations of the program.

Mixed Use Parking Projects – Mixed use parking projects that do not generate tax revenues can qualify for tax credits that can be assigned to lenders for project financing. A tax credit of up to 100% of the parking component project costs and up to 40% (including additional tax credit amounts*) of the non-parking component project costs. Please note that aggregate tax credits available to qualified residential and mixed-use parking projects under ERG are limited to $718 million.

Additional Grant Funding:

EDA will analyze the developer’s financing structure to verify a “gap” or financial need. This review may result in assistance of up to 20% of the total eligible costs, and up to 40% if the following criteria are evidenced:

• Up to an additional 20% (i.e., a total maximum of up to 40%) if located in a one of the five Garden State Growth Zones Atlantic City, Camden, Trenton, Paterson, and Passaic)(“GSGZ”)
• Up to an additional 10% (i.e., a total maximum of up to 30%) if the project is one or more of project types or located in one or more of the locations listed below. (See the Mapping Tool link at the bottom of this page for assistance in determining whether the project address is located in an eligible area.)
• Located in a distressed municipality which lacks adequate access to one of the following:

o Nutritious food, and will include either a supermarket or grocery store with a minimum of 15,000 square feet of selling space devoted to the sale of consumable products or a
prepared food establishment selling only nutritious ready to serve meals.
o Health care and health services and will include a health care and health services center with a minimum of 10,000 square feet of space devoted to the provision of health care and health services

• Transit project
• Qualified residential project with at least 10% of residential units constructed/reserved for moderate income housing.
• Located in a highlands development credit receiving area or redevelopment area
• Disaster recovery project
• Aviation project
• Tourism destination project
• Substantial rehabilitation or renovation of more than 51% of an existing structure(s)

Program Limits:

Commercial, Residential and Mixed Use Parking Projects

• The developer seeking a grant or tax credit through this program is required to have equity participation of at least 20% of the total project cost.

Commercial Projects

• The term of each approved state redevelopment incentive grant agreement may extend for up to 20 years.
• The annual percentage amount of reimbursement shall not exceed an average of 75% of the annual incremental state revenues, and an average of 85% of the project’s annual incremental revenues in a GSGZ.

Residential Projects

• If receiving tax credits, the term of each approved state redevelopment incentive grant agreement will be up to 10 years
• If receiving tax credits,  the Minimum Total Project Cost of at least:

o $17,500,000, if the project is located in a municipality with a population greater than 200,000 according to the latest federal decennial census (Two cities qualify under the
latest federal decennial census data, from 2010 – Newark and Jersey City.)
o $10,000,000 if the project is a disaster recovery project or located in a municipality with a population less than 200,000 according to the latest federal decennial census
o $5,000,000 if the project is in a GSGZ

• Grant Limits – no grant amount can exceed the following limits:
o $40,000,000 per project if located in:
o Deep Poverty Pocket
o Distressed Municipality
o $20,000,000 per project if located in an ERG incentive area, and outside a Deep Poverty Pocket and Distressed Municipality

• Residential projects are not subject to a net benefit analysis.

Residential and Mixed Use Projects
• If receiving tax credits, the term of each grant is 10 years
• Residential and mixed use parking projects are not subject to a net benefit analysis.

Program Requirements:

Commercial and Residential Projects

• The redevelopment project must be located in a qualifying economic and redevelopment and grant incentive area (See Program Rules link below).

• The developer must not have commenced any construction at the site of a proposed redevelopment project prior to submitting an application, except that if the EDA determines that the project would not be completed otherwise, or in the event the project is to be undertaken in phases, a developer may apply for phases for which construction has not yet commenced, subject to N.J.A.C. 19:31-4.6(a)2.

• A project financing gap must exist. ERG is an incentive for real estate development projects that have a financing gap, defined as having insufficient revenues to support the project debt service under a standard financing scenario. It can also apply to projects that have a below market development margin or rate of return. The grant is not meant to be a substitute for conventional debt and equity financing, and applicants should generally have their primary debt financing in place before applying. In order for a project to be approved, it needs to undergo a rigorous analysis of the sources and uses of funds, construction costs and projected revenues. All of these metrics are compared to industry standard measures.

• All projects must meet Green Building Requirements. For guidance on these program requirements, please click here. For questions regarding these requirements, please contact your EDA Business Development Officer.

• Any construction contracts associated with the project must use prevailing wage labor rates and meet affirmative action requirements.

• The developer must submit satisfactory evidence of actual project costs, as certified by a certified public accountant and evidence of a permanent certificate of occupancy, or such other event evidencing project completion as set forth in the incentive agreement, prior to the first disbursement of funds under the agreement or issuance of the tax credit under the approval letter, as applicable.

Commercial Projects

• All commercial projects are subject to an analysis to verify that the revenues the State will realize from the project will be greater than the incentive being provided and an Internal Rate of Return (IRR) Hurdle Rate model to determine a funding gap. The Net Benefits analysis, developed by the EDA, utilizes employment statistics from current Regional Input-Output Modeling System II (RIMS II) data from the US Bureau Economic Analysis.

• Pursuant to a net benefit analysis, the overall public assistance provided to the project will result in net benefits to the state.

• There are no minimum Total Project Cost requirements under the commercial component of the ERG program.

Residential Projects

• For any project consisting of newly-constructed residential units, the developer shall be required, pursuant to P.L. 2008, c. 46 (N.J.S.A. 52:27D-329.9) to reserve at least 20% of the residential units constructed for occupancy by low or moderate income households, as those terms are defined in section 4 of P.L. 1985, c. 222 (N.J.S.A. 52:27D-304), with affordability controls as required under the rules of the Council on Affordable Housing, unless the municipality in which the property is located has received substantive certification from the council and such a reservation is not required under the approved affordable housing plan, or the municipality has been given a judgment of repose or a judgment of compliance by the court, and such a reservation is not required under the approved affordable housing plan.

Application Process:

All Applicants are required to submit an application via EDA’s online application located at https://application.njeda.com/. Applicants may apply to the EDA for a state incentive grant, and to the municipality for a local incentive grant.

Please note: Prior to starting the online application, all applicants must consult with an EDA Business Development Officer.

ERG applications for residential projects must have been submitted no later than July 1, 2016. (see note in paragraph 2 above)*

ERG applications for commercial and mixed use parking projects must be submitted no later than July 1, 2019.

For residential projects, project must be completed with certificate of occupancy issued by July 28, 2019.

Fees apply and are non-refundable unless otherwise noted.

Division of Taxation Tax Clearance Certificate required. Certificates must be requested through the State of New Jersey’s Premier Business Services (PBS) portal online.

• Under the Tax & Revenue Center, select Tax Services, then select Business Incentive Tax Clearance.
• If the applicant’s account is in compliance with its tax obligations and no liabilities exist, the
Business Incentive Tax Clearance can be printed directly through PBS.

Please note: It is the applicant/client’s responsibility to maintain a current and clear tax clearance certificate. If a current and clear certificate is not evidenced to EDA at time of closing, EDA will not proceed with closing.

• Distressed Municipality List
• Market Rates of Return Matrix
• Mapping tool
• Transit Project Bus Terminal List
• Courtesy Copy of Current ERG Program Rules, N.J.A.C. 19:31-4.1 through 4.14 *
• Courtesy Copy of ERG Program Statute – New Jersey Economic Stimulus Act of 2009, N.J.S.A. 52:27D-489a through t

* Any proposed amendments to the program rules can be found on the Proposed New Rules/Amendments page.

Eligible taxes:
1. Corporation Business Tax.
2. Tax imposed on marine insurance companies.
3. Tax imposed on insurers generally.
4. Public utility franchise tax, public utilities gross receipts tax and public utility excise tax imposed on sewerage and water corporations.
5. Tax derived from a business at the site of a redevelopment project that is required to collect the tax pursuant to the “Sales and Use Tax Act.”
6. Tax imposed from the purchase of materials used for the remediation, the construction of new structures, or the construction of new residences at the site of a redevelopment project.
7. Hotel and motel occupancy fees.
8. Portion of the Realty Transfer Fee derived from the sale of real property at the site of the redevelopment project and paid to the State Treasurer for use by the State, that is not credited to the “Shore Protection Fund” or the “Neighborhood Preservation Nonlapsing Revolving Fund.”

3. Bond Financing

https://www.njeda.com/financing_incentives/programs/bond_financing

4. Hazardous Discharge Site Remediation Fund

Businesses operating in New Jersey, individuals, or municipalities that are required to, or volunteered to, perform remediation and/or cleanup of contaminated and underutilized sites may be eligible to secure financing through loans and/or grants under the Hazardous Discharge Site Remediation Fund (HDSRF).

The HDSRF is administered through a partnership between the New Jersey Department of Environmental Protection (DEP) and the EDA. The DEP evaluates an applicant’s preliminary eligibility requirements, the technical merits of the proposed project, and the estimated project costs. Upon DEP approval, the EDA evaluates an applicant’s financial status, determines grant and/or loan eligibility, and awards funding.

Eligibility Criteria:

• Businesses required to perform remediation activities due to closure of operations, transfer of ownership/operations, and do not have funding source.
• Municipalities and persons who voluntarily undertake remediation.
• Municipalities, if they:

o Own or hold a tax sale certificate on the property.
o Have a comprehensive plan or realistic opportunity for property to be re/developed within a three-year period.

• Individuals or businesses who have discharged hazardous substance or are responsible for such substance and do not have funding source.
• Individuals or businesses must have a net worth less than $2 million.
• Individuals or businesses who acquired the project site prior to 12/31/83 where there has been a discharge of a hazardous discharge that was not used by the person who acquired the site, or any person with permission from the applicant to use the site.

Fees apply and are non-refundable.

Division of Taxation Tax Clearance Certificate required. Certificates may be requested through the State of New Jersey’s Premier Business Services (PBS) portal online.

• Under the Tax & Revenue Center, select Tax Services, then select Business Incentive Tax Clearance.
• If the applicant’s account is in compliance with its tax obligations and no liabilities exist, the Business Incentive Tax Clearance can be printed directly through PBS.

Please note: It is the applicant/client’s responsibility to maintain a current and clear tax clearance certificate. If a current and clear certificate is not evidenced to EDA at time of closing, EDA will not proceed with closing.

* The interest rate for loans is the Federal Discount Rate at approval or closing, whichever is lower, with a minimum of 5%.

** Municipal loans have an interest rate of 2 points below the Federal Discount Rate with floor of 3%.

5. Higher Education Institution Public – Private Partnerships Program Information

Note: The program was renewed with new requirements in P.L. 2018, c. 90. The Department of Treasury now has the primary responsibility to approve Higher Education P3 projects.

6. Loans to Lenders Program

This program makes capital available to financial intermediary organizations who can effective reach small businesses in local markets including: micro lenders, Community Development Financial Institutions and Urban Enterprise Zones.

The Loan to Lenders Program is partially funded by the State Small Business Credit Initiative (SSBCI).

Interest Rate and Terms:

• 2% fixed interest rate
• Up to 15 year term with principal moratorium for up to 5 years, then principal and interest to full amortize the loan for the remaining 10 years
• Quarterly loan repayments
• Quarterly reporting

Disbursement Structure:

Disbursements are to be made in tranches as follows: 1/3 of amount awarded at closing and two additional tranches once 75% of the previous tranche is committed. Full disbursement of fund within 2 years.

Fees apply and are non-refundable.

Division of Taxation Tax Clearance Certificate required. Certificates may be requested through the State of New Jersey’s Premier Business Services (PBS) portal online.

• Under the Tax & Revenue Center, select Tax Services, then select Business Incentive Tax Clearance.
• If the applicant’s account is in compliance with its tax obligations and no liabilities exist, the
Business Incentive Tax Clearance can be printed directly through PBS.

Please note: It is the applicant/client’s responsibility to maintain a current and clear tax clearance certificate. If a current and clear certificate is not evidenced to EDA at time of closing, EDA will not proceed with closing.

7. Municipal Landfill Closure and Remediation Reimbursement Program

Eligible developers seeking financial assistance in the closure, remediation and redevelopment of municipal landfill sites in New Jersey may qualify for reimbursement of 75% of the closure or cleanup costs associated with the remediation and redevelopment of a municipal solid waste landfill.

Program Details:

The Municipal Landfill Closure and Remediation Reimbursement Program was developed to encourage the closure, remediation and redevelopment of municipal landfill sites in New Jersey. Reimbursement moneys are derived from one-half of the sales tax revenues generated from any business located on the site. Prior to filing an application with the EDA, the applicant must:

• Attend a pre-application meeting with representatives from the EDA, Department of Environmental Protection (DEP), Department of Treasury, and the Division of Taxation.

• Enter into an agreement with the DEP relating to the sound and proper closure or remediation of the landfill.

• Execute a Redevelopment Agreement with EDA outlining the work necessary to ensure the proper closure and remediation of the landfill.

Division of Taxation Tax Clearance Certificate required. Certificates may be requested through the State of New Jersey’s Premier Business Services (PBS) portal online.

• Under the Tax & Revenue Center, select Tax Services, then select Business Incentive Tax Clearance.

• If the applicant’s account is in compliance with its tax obligations and no liabilities exist, the
Business Incentive Tax Clearance can be printed directly through PBS.

Fees apply and are non-refundable.

https://www.njeda.com/large_business/municipal_landfill_closure

8. Real Estate Impact Fund

The goal of the Real Estate Impact Fund is to support and foster redevelopment in strategic urban and other significant locations that would not otherwise occur in the near term and to strengthen existing and catalyze future development opportunities and private investment. The Fund will advance economic development by supporting projects consistent with local redevelopment plans or strategies, attract private investment, and by creating or retaining jobs.

The Real Estate Impact Fund helps to advance real estate development through two components:

Private Component:

For profit and non-profit developers and business entities with demonstrated experience in successfully completing real estate development projects may be eligible for financing of up to $3 million for costs associated with projects located within Targeted Areas, as noted below.

Public Component:

Properties in Targeted Areas, as noted below, that are owned by the municipality, local redevelopment agency or county improvement authority may be eligible for financing of up to $750,000 for eligible project costs.

Eligible Projects:

Private Component:

Small and mid-size real estate development projects, including: mixed-use (residential and minimum 20% commercial); retail; office; industrial; entertainment venues; associated parking garage structures; and/or land acquisition/assemblages. Total project cost should typically not exceed $15 million. Projects can be either new construction or substantial rehabilitation (defined as rehabilitation costs equaling not less than 50% of the value of the property after rehabilitation (excluding land value).

Residential only projects are ineligible.

Public Component:

• Property Must be owned by the Applicant
• Property must be zoned for commercial or mixed-use, or commercial or mixed use as a permitted use within an approved redevelopment plan. Residential only projects are ineligible.
• The property, in its remediated condition, must have an appraised value equal to or greater than 120% of the requested loan amount.
• Property must be contiguous lots.

Targeted Areas:

Projects must be located in either an Urban Aid Municipality, defined as a municipality qualified to receive assistance under P.L. 1978, c.14 (N.J.S.A. 52:27D-178 et seq.); or within Fort Monmouth or be a New Jersey university/college sponsored project that is a public-private partnership that promotes emerging technologies or industries.

Available Financing:

Private Component:
• Minimum loan amount of $250,000
• Maximum loan amount of $3,000,000
• Loan shall not exceed 25% of total project costs. Total public (federal, state and/or local government) funding cannot exceed 50% of total project costs.

Public Component:
• Minimum loan amount of $100,000
• Maximum loan amount of $750,000
• Loan will be the lesser of 100% of total project costs or the property’s appraised value, in its remediated condition, divided by 120%, rounded to the nearest one-hundred dollars.

Job Creation:

Private Component:
• 1 full time job must be created/maintained for every $65,000 of Authority assistance.

Public Component:
• Applicant must provide a plan for the end-use of the site including an estimate of the number of jobs expected to be created based on the anticipated build-out of the property and the current zoning.
• Job creation will be measured by the project developed on the site and the return of the property to the real estate tax roll.

Eligible Uses:

Loan proceeds can be used for eligible project development costs, which include:

Private Component:

• Property acquisition and assembly;
• Demolition and site clearance;
• Environmental investigation and remediation;
• Pre-development costs;
• On-site infrastructure;
• General construction and/or rehabilitation; and
• Associated soft development expenses

Public Component:

• Title
• Survey
• Environmental investigation and remediation;
• Pre-development costs;
• On-site infrastructure;
• General construction and/or rehabilitation; and
• Marketing the site for sale

Financing Instruments:

Private Component:

• Security/Subordination – the Loan shall be secured by a mortgage; the Authority will subordinate its lien position to other project bank debt;
• Additional – second assignment of all leases, as applicable

Public Component:

• EDA financing must be in first mortgage lien position, including any federal, county, and municipal liens (i.e., a property will not be eligible if there is any outstanding governmental lien)

Loan Term:

• Term: Maximum 10 years

Private Component:

• Commencing upon construction completion

Public Component:
• Commencing upon loan closing.
• Loan due at earlier of refinancing, sale of property, ownership change/transfer (“Liquidity Event”), or end of loan term

Owner Equity:

Private Component:

• Applicant must provide Owner Equity equal to a minimum of 10% of total project costs and must match Impact Fund investment 1:1; Owner Equity shall not include grants or developer fee.

Rates, Repayment & Participating Mortgage Loan Structure:

Private Component:

• Interest rate: 3%
• Payment on accrued interest shall be made from the project’s net cash flow, after payment of all project debt, based on loan percentage in relation to the percentage of total equity contributed by the applicant at the time of project completion, issuance of a permanent certificate of occupancy and submission of the final project. However, in no event shall the actual total equity contributed by the applicant to the project be less than what was presented at the time of approval of the loan.
• If net cash flow is insufficient to pay interest only, then any unpaid interest shall accrue and be added to the outstanding principal balance.
• If the percentage of net cash flow is in excess of the current interest, then the payment shall first be applied to accrued interest, if any, and then to reduce outstanding principal.
• At approval, the Board shall determine the Effective Rate of the loan, which shall range between 3 – 10%, determined by the economic feasibility and the need of the loan for the project.
• All unpaid or deferred interest payments and principal plus amount equal to Effective Rate shall be due in full at end of the loan term or at a Liquidity Event.

Public Component:

• Interest rate: 3%
• During the term of the loan, interest shall accrue and be added to principal annually at the stated interest rate until the earlier of the Liquidity Event or the end of the term.
• All unpaid or deferred interest payments and principal shall be due in full at the end of the loan term, or at a Liquidity Event.

Fees apply and are non-refundable.

Please review the application checklist prior to submitting your application to ensure that all required information has been provided.

Application

Application Checklist (Private Component)

Application Checklist (Public Component)

9. Sales and Use Tax Exemption (STX) Program

A company with 1,000 or more employees that needs to make purchases for construction and renovation of a new business location may be eligible for a sales tax exemption certificate for purchases of machinery, equipment, furniture and furnishings, fixtures and building materials (other than tools and supplies) for placement at the project location until the new facility is functional.

Dollar Amount:

Ability to purchase machinery, equipment, furniture, fixtures, and building materials without NJ’s sales tax.

Uses:

Machinery, equipment, furniture and furnishings, fixtures and building materials other than tools and supplies for placement at the project location until the new facility is functional.

Benefits:

Encourages economic development and preserves jobs that currently exist in the State of New Jersey.

Eligibility Details:

An approved company can receive a sales tax exemption certificate, which applies only to property purchased for installation at the approved project site. This certificate allows the business to purchase machinery, equipment, furniture, fixtures, and building materials for the project without the imposition of the state’s sales tax.

To be eligible, a company must meet the following requirements:

• A company must have 1,000 or more employees and relocate at least 500 workers to a new or substantially rehabilitated facility.

• Life sciences or manufacturing companies relocating 250 or more employees may be eligible.

• Companies must maintain the retained full-time jobs for five years.

• Qualifying companies must demonstrate that receiving the Sales and Use Tax Exemption benefit is a material factor in the company’s decision not to relocate outside of New Jersey, they must provide health care benefits to employees, and they or a predecessor entity must have operated in New Jersey for at least 10 years (point-of-purchase/retail facilities are excluded).

Fees apply and are non-refundable.

Division of Taxation Tax Clearance Certificate required. Certificates may be requested through the State of New Jersey’s Premier Business Services (PBS) portal online.

• Under the Tax & Revenue Center, select Tax Services, then select Business Incentive Tax Clearance.
• If the applicant’s account is in compliance with its tax obligations and no liabilities exist, the
Business Incentive Tax Clearance can be printed directly through PBS.

Please note: It is the applicant/client’s responsibility to maintain a current and clear tax clearance certificate. If a current and clear certificate is not evidenced to EDA at time of closing, EDA will not proceed with closing.

https://www.njeda.com/financing_incentives/large_business/Sales-and-Use-Tax-Exemption-Program

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