New Jersey Economic Development Authority (NJEDA)
Through New Jersey Economic Development Authority (NJEDA) programs, the State of New Jersey has awarded millions of dollars in tax credits to companies for increasing statewide workforce, retaining statewide workforce and completing capital investment through building or renovations of existing structures.
The Business Employment Incentive Program (BEIP), Business Retention and Relocation Assistance Grant Program (BRRAG) and Urban Transit Hub Tax Credit (UTHTC) have incentivized New Jersey businesses to generate new tax revenue, complete capital investments and hire or retain employees.
The successor law, the New Jersey Economic Opportunity Act, condensed the State’s economic development incentive programs to two: the Grow New Jersey Assistance (Grow NJ) Program and the Economic Redevelopment and Growth (ERG) program. Grow NJ encourages job creation and retention, while ERG is the State’s key developer incentive plan.
The submission to the NJEDA requires certified public accountant certification of the eligible capital investment and project costs, as well as eligible employees, as set forth in the grant approval letter. Under each program, tax credits received are generally applied over a 10-year period.
What does this mean to you?
As a New Jersey business with plans to relocate, grow its workforce or renovate existing space, the Grow NJ or ERG programs can provide substantial tax credits to offset costs. For companies with considerations of leaving the state of New Jersey, these programs can provide tremendous incentive for remaining in state. For growing companies, these programs can provide tax savings for helping to increase statewide employees. Doing so will require CPA certification of the costs and eligible employees. Having a provider to complete the CPA certification with substantial experience in such engagements is integral in an efficient path to the issuance of the tax credits. EisnerAmper has assisted or is currently assisting clients in regards to the issuance of more than $500 million in tax incentives.
How can EisnerAmper help?
EisnerAmper has performed procedures in relation to these grants since the program’s original inception in 2010. We work hand-in hand with the NJEDA in helping our clients through the process, up to the point when the tax credits are granted. The NJEDA often provides the procedures we have developed to incentive recipients as a reference and we have developed a strong working relationship with the individuals at the NJEDA.
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Joseph DiFalco is an Audit Partner providing accounting, auditing and business consulting services, and helps guide the firm’s International Financial Reporting Standards (IFRS) initiative.
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