PRINCETON, N.J., Sept. 18, 2013 /PRNewswire/ -- In a major effort to streamline New Jersey's incentive programs aimed at attracting and retaining business, the state approved sweeping legislation today that consolidates the state's five biggest tax incentive programs into two powerful programs that will improve efficiency, help create jobs and stimulate economic development.
The bill, known as the Economic Opportunity Act, expands the state's Grow New Jersey and Economic Redevelopment and Growth programs and phases out the Business Retention and Relocation Assistance Grant, the Business Employment Incentive, and the Urban Transit Hub Tax Credit programs.
The new legislation reduces the threshold for the size an investment a company needs to make to qualify for tax breaks from 100 full-time jobs to as low as 10 full-time jobs for technology start-ups and 25 new jobs in targeted industries, including transportation, manufacturing, defense, energy, logistics, life sciences, technology, health and finance.
The highest levels of bonus credits are for "mega projects" and projects located in nine Urban Transit Hubs; four cities comprising the Garden State Growth Zone (Camden, Newark, Passaic and Paterson); and eight South Jersey counties.
The Economic Opportunity Act also allocates $600 million in tax credits to the Economic Redevelopment and Growth program for residential projects. The bulk of the credits are aimed at stimulating investment in targeted areas in Urban Transit Hubs and the eight South Jersey counties.
"The New Jersey Economic Opportunity Act is pro-business, creating a pair of powerful incentive programs that will help New Jersey compete successfully in an increasingly competitive battle for jobs and capital investment, not just within the United States, but around the globe," said Tracye McDaniel, President and CEO of Choose New Jersey, Inc., the privately funded organization that markets the state as a premier business location. "Streamlined and smart, the new legislation will improve efficiency in evaluating and awarding incentives to create jobs and stimulate investment in New Jersey. These incentives, along with the state's strong business assets, will move New Jersey in the direction of being one of the top business locations in the nation and the world."
With 21 Fortune 500 companies headquartered in New Jersey, the state also boasts 14 of the 20 largest pharmaceutical companies, as well as thriving life science, technology, financial, logistics, aviation and advanced manufacturing sectors. New Jersey has been proven to have the nation's highest concentration of scientists and engineers.
About Choose New Jersey, Inc.
Choose New Jersey is one of four elements of the Partnership for Action (PFA) economic development organization led by Lt. Governor Kim Guadagno. It includes the Business Action Center, which provides the business community with a single point of contact, and applies a proactive, customer-service approach to businesses' interactions with State government; the Secretary of Higher Education, which coordinates, plans, develops policies, and advocates for the state's higher education system; the New Jersey Economic Development Authority, serving as the State's financing arm; and Choose New Jersey, a privately funded marketing, business attraction and lead generation organization that markets the state as a premier business location. For more information, visit www.choosenj.com.
Contact: Susan White, 609-297-2200
SOURCE Choose New Jersey, Inc.