May 04 New Jersey Real Estate Incentives
Running a real estate business in New Jersey has its many challenges. Why not get rewarded for your dedication to the Garden State? The New Jersey Economic Development Incentive Programs may be a solution to your business needs and the financial obstacles associated with operating in the state.
Major corporations, including Tory Burch, Forbes Media, Philadelphia 76ers and Lockheed Martin, have recently taken advantage of sizable incentives for bringing business to New Jersey.
Is your company missing out? Sax Real Estate advisors have the knowledge and expertise to help developers, investors and business owners identify incentive opportunities and take advantage of everything New Jersey has to offer:
NJ Economic Redevelopment and Growth (ERG)
NJ ERG is the state’s key incentive program for developers. Recently, the state legislature passed a bill that increased the value of this grant program to $823 million, with $105 million of credits earmarked for qualified residential projects and mixed use parking projects. Developers can be reimbursed up to 20% of their remediation and construction costs, and even more if the project is located in a Garden State Growth Zone (Atlantic City, Camden, Trenton, Passaic and Paterson).
Urban Enterprise Zones (UEZ)
Leasing or purchasing property in one of New Jersey’s UEZs could qualify your company for a state sales tax exemption on qualified purchases. A full list of UEZs, as of January 1, 2017, can be found here.
Grow New Jersey
The state’s main job creation/retention incentive program, Grow New Jersey offers transferable corporate income tax credits to companies that “create and/or retain” jobs. Credits are awarded on a per-job basis and range from $500 to $5,000 per job per year, over 10 years. Eligibility and award size depend on a number of factors, such as location, industry and wages.
Prime examples of what NJ has to offer include:
- Tory Burch – The fashion designer received a nearly $10.8 million tax credit in the fall of 2016 for moving from Manhattan to Jersey City, where they leased 93,000 SF and brought 102 anticipated new positions to NJ.
- Forbes Media – In 2014, the global media brand relocated from Manhattan to Jersey City after being enticed with a 10-year, $27 million incentive.
Nearly 2 dozen private companies were collectively awarded $1.3 billion in recent years for building in the city of Camden, including:
- Philadelphia 76ers – $82 million
- EMR Eastern – $253 million incentive
- Holtec International – $260 million
- Lockheed Martin – $107 million
For more information on the New Jersey Economic Development Incentive Programs, contact a Sax Real Estate advisor at (973) 472-6250 or [email protected].
