The following incentives are available from the State of New Jersey and local governments. The County’s Office of Economic Development can assist you in applying for any of the following:
A. Business Retention & Relocation Assistance Grant (BRRAG) – The purpose of this grant program is to encourage economic development and job retention by assisting firms with jobs that currently exist in New Jersey but are in danger of being relocated outside the state. Tax Credits of up to $2,250 per job retained are payable as a grant of tax credits against a business’ tax liability. A total of $20 million in tax credit allocation is available per year. Companies without New Jersey Corporate Business Tax liability are permitted to sell unused credits for at least 75 percent of their face value. To be eligible for the BRRAG Tax Credit, a business must:
- Retain a minimum of 50 full-time jobs in New Jersey;
- Offer its employees health care benefits;
- Have been in business in New Jersey for at least 10 years;
- Demonstrate that the grant is a “material factor” in moving the retention project forward in New Jersey;
- Secure approval for the BRRAG from EDA’s Board of Directors prior to signing a lease, entering into a purchase contract, or otherwise committing to the site in New Jersey that will host the relocation project;
- Enter into any construction contracts associated with the project using “prevailing wage” labor rates;
- (When leasing) enter into a lease for a term of at least eight years, or a five year lease plus grant term for a maximum of an 11 year lease minimum.
Other key program details include the following:
- Businesses that remain at an existing location or relocate within the state are eligible.
- Businesses remaining at their existing site are eligible if they make capital investments at least equal to the total value of the retention grant. (The total value of the retention grant is based on the number of jobs retained multiplied by $1,500. Eligible capital expenses do not include soft costs such as financing and design, furniture or decorative items such as artwork or plants, or office equipment if the office equipment is property with a recovery period of less than five years.)
- The base grant amount is $1,500 per retained job.
- Companies making eligible capital investments at least two times the amount of the grant are eligible for a bonus award for a total credit of $2,250 per retained job. The total grant amount including any bonus award shall not exceed 50 percent of the project’s eligible capital investment.
- No company can use more than $10 million of BRRAG allocation in one year.
- Employees working in New Jersey and residing in Pennsylvania can be counted toward the BRRAG tax credit.
- The BRRAG program includes a “Net Benefits” test. For example, the forecasted “net benefits” of the retained jobs must outweigh the value of the tax credits.
- The tax credit amount and number of years the tax credit is issued increases from one to six years depending on the number of “at risk” jobs.
B. Regulatory/Permitting Assistance – Coordination and assistance with any regulatory and permitting issues associated with this project.
C. Business Employment Incentive Program (BEIP) – Administered by the New Jersey Economic Development Authority (EDA), the BEIP program offers grants to businesses that create jobs in New Jersey. BEIP grants may be awarded for up to 10 years and can range between 10 percent and 80 percent of the total amount of state income taxes withheld by a company during the calendar year from the new employees hired. Once the BEIP application is approved, the company has two full calendar years to create the specified number of new jobs. A business receiving the grant must:
- Create and maintain at least 25 jobs to qualify (10 jobs for high-tech companies); offer its employees health care benefits;
- Demonstrate that the grant is a “material factor” in moving the project forward in New Jersey;
- Secure approval for the BEIP from EDA’s Board of Directors prior to signing a lease, entering into a purchase contract, or otherwise committing to the site in New Jersey that will host the expansion and/or relocation project;
- Maintain the created jobs for a 15-year period; and
- Enter into any construction contracts associated with the project using “prevailing wage” labor rates.
D. Customized Training Grant Program – Administered by the New Jersey Department of Labor & Workforce Development (DOL), these competitive grants are available to upgrade the skills of workers to ensure that New Jersey employers are more competitive in the global economy. Grant allocations may be applied to the direct cost of training (training vendor fees, training supplies, etc.) as well as the partial reimbursement of wages of workers participating in the training. Awards are capped at $50,000 for companies with 250 employees or less and can range up to $1,000 per employee trained depending on the complexity and term of the training.
E. Positive Recruitment – Offered through the DOL, state representatives at regional Business Resource Centers can help relocating employers find workers. Employers can schedule a date, time, and place for DOL representatives to help pre-screen job applicants from the company’s pool of submitted resumes. The Business Resource Center can also market the positive recruitment online by creating flyers that are distributed through partners as well as community and faith-based organizations.
F. On‐The‐Job (OJT) – The OJT program reimburses employers up to $4,000 for the costs of training new workers who are unemployed or underemployed. The OJT contract must be signed prior to the new employee’s start date. There is no fee to the employer. The employer must agree that, pending satisfactory performance, the trainee will be retained at the end of the contractual training period. Regional Workforce Investment Boards throughout New Jersey can provide more information. A list of New Jersey’s Workforce Investment Boards can be found on-line at: http://www.njsetc.net/njsetc/localwib/.
Other key program features are as follows:
- The only records required to be kept are performance evaluations, attendance, and payroll.
- Funds cover extraordinary costs and lower productivity related to the new employee for up to six months.
- The employer makes the hiring decision on the new worker.
- Reimbursement rate is usually calculated at half the pay rate for the agreed upon training period.
- Employer is reimbursed at the end of the contract.
- Employer is monitored by a local New Jersey Department of Labor One-Stop Career Center.
- The OJT employee must receive the same wages and benefits as those in comparable positions.
- Training must be related to a specific career/occupational goal.