New Jersey offers an array of tax incentives, grants, and loan programs designed to stimulate business growth, encourage innovation, and create job opportunities in the state.  The state's incentives are aimed at supporting industries such as technology, manufacturing, energy, and life sciences, providing businesses with valuable resources to expand and thrive.  Below are some of the key business incentives available in New Jersey.

New Jersey Economic Development Authority (NJEDA) Tax Incentive Programs

Overview

The NJEDA programs provide various tax incentive programs to encourage businesses to invest in the state.  These programs are designed to stimulate economic development, create jobs, and attract new industries to New Jersey.

Eligibility

• The business must meet specific job creation and investment requirements.

• The business must operate in targeted industries such as technology, manufacturing, life sciences, or clean energy.

• The business must meet wage and benefit standards set by the NJEDA.

Incentive Value

• Incentives include tax credits, abatements, and exemptions on state taxes such as the Corporation Business Tax (CBT), Sales and Use Tax, and property taxes.

• The value of the incentives depends on the number of jobs created, the level of investment, and the business sector.

Application Process

Businesses must apply through the NJEDA, providing a detailed proposal and business plan outlining the project and economic impact.

New Jersey Technology Business Tax Certificate Transfer Program (NOL Program)

Overview

The New Jersey Technology Business Tax Certificate Transfer Program is designed to help early-stage technology companies by providing financial relief through the transfer of tax credits.  This program allows companies to sell their unused net operating loss (NOL) credits to raise capital.

Eligibility

• The business must be a technology-based company in New Jersey with less than $5 million in annual gross revenue.

• The company must have been in operation for less than five years.

Incentive Value

• Eligible businesses can transfer their NOL credits to other New Jersey-based businesses or individuals in exchange for cash or other funding.

• This helps startups access immediate capital for growth and development.

Application Process

Businesses must apply through the NJEDA, providing documentation of their technology business status, financials, and tax filings.

New Jersey Urban Enterprise Zone (UEZ) Program

Overview

The UEZ program offers a range of benefits to businesses located in designated urban areas.  The program’s goal is to promote economic development, reduce unemployment, and stimulate investment in urban communities.

Eligibility

• The business must be located within a designated UEZ.

• The business must be engaged in qualified activities such as retail sales, manufacturing, or services that benefit the local community.

Incentive Value

• The program provides sales tax exemptions on purchases made within the zone.

• Businesses may also qualify for income tax credits, grants for equipment and infrastructure, and reduced property taxes.

Application Process

Businesses must apply through the NJEDA or their local UEZ authority, providing documentation of their operations and compliance with program requirements.

New Jersey Brownfield Redevelopment Tax Credit Program

Overview

The New Jersey Brownfield Redevelopment Tax Credit Program incentivizes the redevelopment of contaminated properties (brownfields) to restore underutilized land and promote environmental cleanup.  The program aims to attract private investment into urban areas while addressing environmental hazards.

Eligibility

• The business must be involved in the redevelopment of a brownfield site in New Jersey.

• The property must be located in a designated brownfield area and meet environmental remediation criteria.

Incentive Value

• The program offers tax credits of up to 100% of the eligible remediation costs incurred for brownfield redevelopment projects.

• These credits can be applied to offset state business taxes and can be transferred or sold.

Application Process

Businesses must apply through the NJEDA, providing documentation of the site’s contamination, remediation plans, and financial details of the redevelopment project.

New Jersey Renewable Energy Incentives

Overview

New Jersey offers various incentives to businesses involved in renewable energy projects.  These incentives support the installation of solar, wind, and other renewable energy systems to reduce reliance on fossil fuels and promote sustainability.

Eligibility

• The business must invest in renewable energy systems such as solar panels, wind turbines, or biomass energy.

• The business must meet energy efficiency standards and reduce its carbon footprint.

Incentive Value

• The program offers tax credits, grants, and rebates for renewable energy projects.

• Additionally, businesses can qualify for sales tax exemptions on renewable energy equipment and services.

Application Process

Businesses must apply through the New Jersey Board of Public Utilities (BPU), providing details of their renewable energy project and expected environmental impact.

New Jersey Angel Investor Tax Credit Program

Overview

The New Jersey Angel Investor Tax Credit Program encourages investment in early-stage, innovative businesses by offering tax credits to angel investors who fund qualifying startups.

Eligibility

• The business must be a New Jersey-based startup in an innovative industry such as technology, life sciences, or clean energy.

• The angel investor must be an accredited investor and provide funding to the business in exchange for equity.

Incentive Value

• Investors receive a tax credit equal to 10% of their investment, up to a maximum of $500,000 per investor per year.

• The program provides up to $25 million annually in credits, supporting a wide range of startups.

Application Process

Investors must apply to the NJEDA to claim the tax credit, while businesses must apply to verify their eligibility and startup status.

New Jersey Workforce Development Program

Overview

New Jersey’s Workforce Development Program provides financial assistance to businesses that invest in employee training and skills development.  The program aims to increase productivity, reduce turnover, and improve workforce quality.

Eligibility

• The business must be located in New Jersey and employ at least one worker.

• The training must be related to enhancing employee skills, such as technology upgrades, customer service training, or manufacturing process improvements.

Incentive Value

• The program offers grants and reimbursements to cover up to 50% of training costs, including instructor fees, materials, and travel expenses.

• Grants can be as high as $1 million per business, depending on the scope of the training program.

Application Process

Businesses must apply through the New Jersey Department of Labor and Workforce Development, submitting a training plan and funding request.

New Jersey New Markets Tax Credit Program

Overview

The New Jersey New Markets Tax Credit Program provides federal tax credits to businesses investing in low-income communities in New Jersey.  This program aims to spur economic development, create jobs, and revitalize distressed areas.

Eligibility

• The business must invest in projects that take place in designated low-income communities.

• The business must meet job creation and investment criteria outlined by the program.

Incentive Value

• The program offers a federal tax credit worth up to 39% of the investment over seven years.

• Credits are spread out over seven years, incentivizing long-term investment in these communities.

Application Process

Businesses must work with a designated Community Development Entity (CDE) to apply for the tax credits and to ensure the project meets program requirements.