(TRENTON) — Legislation Assembly Democrats Albert Coutinho and Herb Conaway M.D. sponsored to create jobs and economic development to combat New Jersey’s continued high unemployment rate was signed into law Friday.
The new law (formerly A-4306) builds upon ongoing Democratic job creation efforts and establishes the Grow New Jersey Assistance Program tax credit incentive for New Jersey-based companies that retain and create new jobs.
“Nothing is more important right now than doing whatever we can to help New Jerseyans and the businesses that employ them survive this difficult economy,” said Coutinho (D-Essex), chairman of the Assembly Commerce and Economic Development Committee. “Creating jobs and economic growth is a must, and with this law, we’re positioning New Jersey businesses to succeed in the 21st century. That can only be a good thing for our residents.”
“Incentive programs designed to grow New Jersey companies who retain and create new jobs is a smart approach,” said Conaway (D-Burlington/Camden). “It ensures subsidies are aligned with real job creation that benefits our working families. Targeted incentives like this will strengthen New Jersey’s economy and build a stronger middle class.”
The new law establishes a $200 million tax credit incentive program that emphasizes growth of New Jersey-based companies through capital investment, creation of new jobs and retention of existing jobs.
To be eligible for program tax credits, the law requires a business to make capital investments of at least $20,000,000 at a qualified business facility at which it will employ at least 100 full-time employees in retained full-time jobs, or create at least 100 new full-time jobs in an industry deemed desirable by the New Jersey Economic Development Authority.
Eligibility for program tax credits are based upon a determination by the EDA that the capital investment will yield a net positive benefit to the state and that the award of tax credits is a material factor in the business decision to create or retain the minimum number of full-time jobs.
The program’s cost falls under the $1.5 billion cap established under the Urban Transit Hub Tax Credit program. The law allows the initial $200 million program allocation to be increased by the board of the EDA if the board determines the credits to be reasonable, justifiable, and appropriate.
The new law requires that all applications for eligibility under the program shall be made to the EDA by July 1, 2014.