New Jersey Enacts Corporate Tax Credits for Job Creation and Capital Investment
(Jan. 31, 2012)
New Jersey Governor Chris Christie signed legislation on Jan. 6, 2012, creating the GrowNJ Assistance Program that provides tax credits to companies moving to or growing in the state.
Under GrowNJ, eligible businesses will receive an annual tax credit between $5,000 and $8,000 for 10 years for each full-time job created or retained. To be eligible for the credit, businesses must retain or create at least 100 full-time jobs in an industry designated as desirable by the New Jersey Economic Development Authority, including the advanced manufacturing, transportation, logistics and distribution, life sciences, technology, healthcare, and finance industries. In addition to creating and retaining jobs, businesses also must make a capital investment of at least $20 million in a qualified incentive area.
A business must apply for the tax credit prior to July 1, 2014, and must submit documentation no later than July 28, 2017, indicating that it has met the employment and capital investment requirements to certify its credit amount. The credit may be applied against a taxpayer's liability under the Corporation Business Tax, the employer payroll tax, and the insurance premium tax.
For more information on how these issues might affect you, please contact Chris Hopkins at 212.572.5592 or email@example.com, Scott Tarney at 614.469.4001 or firstname.lastname@example.org, or any Crowe Horwath LLP tax professional.
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