The New Jersey Economic Opportunity Act of 2013 (the
"Act") was signed into law on September 18, 2013. The Act
is intended to promote job creation and the redevelopment of urban
centers, suburban office parks and areas impacted by Hurricane
Sandy by expanding state programs that offer tax incentives. The
Act phases out three existing programs and expands two
existing programs: the Grow New Jersey Assistance ("Grow
NJ") Program and the Economic Redevelopment and Growth
("ERG") Program. The Grow NJ Program provides incentives
and tax credits for businesses that invest and create jobs in New
Jersey. Under the Act the Grow NJ Program provides bonus tax
credits for mega projects and projects located in Urban Transit
Hubs and the Garden State Growth Zone, and lowers minimum capital
investments and job creation requirements for 8 counties including
Camden and Atlantic counties. Under the Act the ERG Program,
provides that a developer can apply for a state or local incentive
agreement to receive back from the state or local authority up to
an average of 75 percent of the annual incremental state or local
revenues from the redevelopment project generated through various
taxes or 85 percent of such revenues for projects in a Garden State
Growth Zone with a grant equal to a maximum of 20% of project
costs. The Act provides that the New Jersey Economic Development
Authority may grant a bonus incentive of up to 10% of project costs
for a maximum award of 30% of project costs if the project falls
with in one of eleven categories which include: (a) a super market
in a distressed community; (b) health care facility in a distressed
community; or (c) residential project with a 10% set aside for
moderate income housing. The ERG Program now also provides for $600
million of tax credits for developers of qualified residential
projects. These two programs will be administered by the New Jersey
Economic Development Authority.
This article is for general information and does not include full legal analysis of the matters presented. It should not be construed or relied upon as legal advice or legal opinion on any specific facts or circumstances. The description of the results of any specific case or transaction contained herein does not mean or suggest that similar results can or could be obtained in any other matter. Each legal matter should be considered to be unique and subject to varying results. The invitation to contact the authors or attorneys in our firm is not a solicitation to provide professional services and should not be construed as a statement as to any availability to perform legal services in any jurisdiction in which such attorney is not permitted to practice.
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