Creating jobs for the State of New Jersey is the overall goal for Governor Chris Christie’s GrowNJ program, signed on January 6. In it at least $200 million in incentives are offered to NJ businesses that span the state, and especially those outside of recently-benefited urban hub centers such as Newark and Hoboken. Companies moving their operations to the Garden State or those who work to stay and grow in the State and their job creation and/or retention will be rewarded.
Governor Christie hopes GrowNJ’s tax benefits and incentives will not only stimulate businesses already operating in NJ, but welcome businesses from outside his state to consider setting up shop there. Specifics of the GrowNJ plan are as follows:
- An annual tax credit of $5,000 to $8,000 for ten years for each full-time job created or retained
- Eligibility for a GrowNJ tax credit based on either the creation of 100 full-time jobs or retention of 100 full-time jobs
- Jobs must be in an EDA-designated desirable industry
- Business must take place in a qualified redevelopment zone
- In addition to creation/retention of the 100 jobs, must also make a capital investment of at least $20 million in a qualified incentive area
The U.S. Economic Development Administration (EDA) was established to stimulate industrial and commercial growth in economically-troubled areas of the United States. New Jersey’s executive team leading the State-based branch of the EDA guides the creation of jobs and economic growth for the Garden State.
The recently-passed Urban Transit Hub Tax Credit (UTHTC) offers a tax break to developers who implement projects straddling urban transit hubs and those ineligible for this program are the ones targeted for GrowNJ’s tax cuts and incentives. Funding, however, falls under the general umbrella of UTHTC; the $1.5 billion total tax credit cap already provided for in the UTHTC will cover GrowNJ’s $200 million cost. The areas where UTHTC is targeting are urban transit hubs located with ½ mile (expanded now to 1 mile) of New Jersey Transit, PATH, PATCO or light rail stations in Camden, East Orange, Elizabeth, Hoboken, Jersey City, Newark, New Brunswick, Patterson and Trenton. GrowNJ’s specifics also include changes to UTHTC plans; now medical facility sites, vacant hospital sites and federally-designated choice neighborhoods must be placed within one mile of a rail station in a UTHTC city.
Christie hopes the suburban reach of the GrowNJ plan will make sure that critical economic developments extend into sometimes-overlooked areas for commercial growth. But GrowNJ’s devil will be in the details: in order to receive the tax credits promised a business will have to show the retention of jobs in their designated areas. They need to develop long-term job permanence for these regions. It’s easy to start projects off with a boom to the local construction industries but once construction is complete are there long-term positions available for the citizens of these areas? That’s where GrowNJ is mandating adherence to the plan in order to receive aid/incentives.
Stimulating economies outside of 9 major urban hub zones is the focus of Governor Chris Christie’s GrowNJ project. Focusing on not only creation, but retention of jobs, it’s an extension of an already-established NJ initiative seeking outside investment, relocation of companies to the GardenState.
Read more articles:
New York recognizes best regional plans for business and community awards millions
