New Jersey Tax Incentives
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New Jersey Tax Incentives
Page Contents
- Bond Financing
- Business Enterprise Incentive Plan
- Business Loans
- Business Services
- Chamber of Commerce
- Customized Training Program
- Division of Vocational Rehabilitation Services Employer Services
- Economic Development Authority
- Employees Tax Credit
- InvestNJ Business Grant Program
- Job Seekers Information
- Life Science and Technology
- Main Street Business Assistance Program
- Manufacturing Equipment and Employment Investment Tax Credit
- New Jersey Apprenticeship Program
- New Jersey SmartStart Buildings Program
- New Jersey Workability Program
- New Jobs Investment Tax Credit
- On-The-Job Training Program
- Smart Moves Business Program Tax Credit
- Statewide Loan Pool for Business
- Supported Employment
- Urban Enterprise Investment Tax Credit
- Urban Enterprise Zone Program
- Urban Transit Hub Tax credit Program
Bond Financing
Bond financing can be an attractive form of lower cost, long-term borrowing for qualifying businesses needing at least $1 million in capital. The New Jersey Economic Development Authority may issue a bond of up to $10 million to enable a manufacturer to finance real estate acquisitions, equipment, machinery, building construction and renovations.
With funding from the bond, New Jersey businesses can purchase assistive technology to make a disabled employee more productive or renovate a building to make it accessible to employees who use wheelchairs.
Business Employment Incentive Plan (BEIP)
With Business Employment Incentive Plan, incentive grants are offered to companies that create new jobs in New Jersey. Grants are targeted to businesses that are considered to be important to New Jersey ’s future.
The jobs that are created can be for people with disabilities who are looking for employment. The program guidelines offer that people with disabilities, as a group, tend to be underemployed and that grants provided by BEIP can help reverse that trend.
You can also find more information on the following fact sheet.
New Jersey Business Employment Incentive Plan Fact Sheet Download Form
Business Loans
The following are business loans offered to New Jersey businesses. Capital from these loans can be used to hire a person with a disability or make a work site accessible for an employee using a wheelchair.
Business Services
The Business Services website offers information and links to resources and programs for businesses that wish to employ workers with disabilities.
Chamber of Commerce
The New Jersey Chamber of Commerce is a business advocacy organization based in Trenton. Created in 1911, the State Chamber staff represents its members on a wide range of business and education issues at the State House and in Washington. The organization also links the state’s local and regional chambers on issues of importance through its grassroots legislative network.
Customized Training Program
The New Jersey Department of Labor's Customized Training Program promotes the creation and retention of high-skill, high-wage jobs through comprehensive workforce training. Financial assi stan ce in the form of matching grants may be available to qualified businesses to offset some of the costs of occupational training in the workplace.
People with disabilities often don’t have the skills needed to get and maintain high-skill, high-wage jobs. Through the Customized Training Program, a person with a disability can receive the training needed to raise his/her skill levels to attain and keep gainful employment.
Division of Vocational Rehabilitation Services (DVRS) Employer Services
The Division of Vocational Rehabilitation Services web site contains information on the many services available to businesses that employees DVRS clients. These services include: providing workstation adjustments for a disabled worker, installation of assistive technology and on-the-job training.
Since DVRS does job placement, it is an excellent resource for any employer who wants to hire someone with a disability. DVRS can also do workplace accommodations for an employee who acquires a disability and wants to continue to work.
Economic Development Authority
If you are a business in need of financing to grow in New Jersey, a nonprofit organization seeking capital to expand community services, a municipality looking to attract a major corporation within your boundaries, or a developer requiring funds for a major redevelopment project, the New Jersey Economic Development Authority (EDA) is ready to put its resources to work for you.
Economic Recovery Tax Credit
A taxpayer that is engaged in the conduct of business within a qualified municipality and who is not receiving a benefit under the “New Jersey Urban Enterprise Zones Act” may claim a tax credit equal to $2,500 for each new full-time position at that location in credit year one and $1,250 for each new full-time position at that location in credit year two.
To claim this credit, the taxpayer must complete Form 313 and attach it to the tax return.
Employees Tax Credit
This credit is available to a taxpayer that was certified as a qualified business in the preceding tax year as well as the current tax year. Qualifying employees must have been hired after certification and must have worked six consecutive months in the tax year following the tax year in which employment began.
To claim the credit, a completed Form 300 must be attached to the tax return.
InvestNJ Business Grant Program
The InvestNJ Business Grant Program is a new limited-time program designed to provide new capital investment and employment grants to help expand and improve New Jersey's economic and job growth and business retention capabilities during a challenging economic period. The program offers incentives under two separate components: capital investment and job creation. Companies may benefit from either component or a combination of the two.
The economic growth brought about by this grant program can include job creation for people with disabilities.
The following is a link to the online application for financial assistance from the New Jersey Economic Development Authority.
Job Seekers Information
Job Seekers can find employment opportunities and other services that will assist with a job search.
Life Science and Technology
The Life Science and Technology financial programs are designed to help grow companies, bring innovation to the marketplace and create a collaborative environment between universities and businesses.
The growth generated from this program can be job creation/retention for qualified people with disabilities in the science and technology fields.
Innovation Zones (this is a similar program)
Main Street Business Assistance Program
The Main Street Business Assistance Program is a limited-time program that provides financial support to commercial banks in New Jersey to assist in offering loans and guarantees to small and mid-sized businesses and nonprofit organizations with projects in New Jersey.
Businesses that receive these loans can use the capital for job creation/retention for people with disabilities.
Manufacturing Equipment and Employment Investment Tax Credit
The purpose of the Manufacturing Equipment and Employment Investment Tax Credit is to encourage investment in certain manufacturing equipment in New Jersey and to provide businesses with the incentive to increase employment by hiring New Jersey residents. Residents who are hired can be people with disabilities who are seeking employment.
The following form must be completed to receive the Manufacturing Equipment and Employment Investment Tax Credit:
New Jersey Manufacturing Equipment and Employment Investment Tax Credit form
New Jersey Apprenticeship Program
Financial assistance is available to small and mid-size manufacturing employers with up to 400 employees who require financial resources to upgrade the skills of employees working in the direct production of goods in a manufacturing environment through the federal Registered Apprenticeship Program.
The apprentice can be a person with a disability who needs a skills upgrade to secure or maintain employment.
New Jersey SmartStart Buildings Program
New Jersey’s SmartStart Building Program is administered by New Jersey’s Office of Clean Energy. Whether you’re starting a commercial or industrial project from the ground up, renovating existing space, or upgrading equipment, New Jersey has unique opportunities to upgrade the quality of the project.
Assistance from this program can make an old building ADA compliant for employees with disabilities.
New Jersey Workability Program
Many people with disabilities choose not to work because of fear of loosing their health insurance benefits. The Workability Program solves this problem. NJ Workability is a program that allows certain employed people with permanent disabilities, whose earnings are too high for them to qualify otherwise for Medicaid coverage, to receive full New Jersey Medicaid benefits. In some instances, people who qualify for the program may have to pay a monthly premium of $25 per month for one person or $50 per month for a couple. The web site also has further details on eligibility and income/resource guidelines
New Jobs Investment Tax Credit
This Corporation Business Tax Credit is available for investments made in new or expanded business facilities that creates at least 5 new jobs in New Jersey. This tax credit can also pass through to principals of Subchapter-S corporations.
To reverse the staggeringly high rate of unemployment among people with disabilities, the New Jobs Investment Tax Credit can be used to encourage the hiring of more people with disabilities.
The following form must be completed to receive the New Jobs Investment Tax Credit:
New Jersey New Jobs Tax Credit form
On-The-Job-Training (OJT) Program
An employer provides job-specific training as well as long-term employment and benefits to new employees who are Work First New Jersey clients. For incurring training costs and lost production time, the employer is reimbursed 50% of the new employee's wages.
The Work First New Jersey client benefiting from this program could be someone with a disability who needs on-the-job training to help him/her get and keep gainful employment.
Smart Moves Business Program Tax Credit
Employers who develop and support their own employee transportation programs may apply for a state corporate tax credit for a portion of the expenses incurred to make alternative modes of transportation available to their employees.
Having alternative modes transportation can be very beneficial for working-class employees, especially those with disabilities.
Statewide Loan Pool for Business
Through an arrangement between the New Jersey Economic Development Authority and New Jersey banks, loans from $50,000 up to $3 million for fixed assets and up to $500,000 for working capital are available.
Proceeds from a loan could be used to renovate a business’ office area making it more accessible to employees and potential employees with disabilities. Funds could also purchase assistive technology that would increase the productivity of a permanently disabled worker. A good example of assistive technology is a voice recognition system for the computer. By recognizing the user’s voice, this device will type whatever is said into its microphone. The person utilizing this technology does not need to use a keyboard to operate a computer.
Supported Employment
For employers who are interested in knowing about supported employment and the services available to disabled employees, this web site contains information on these types of supports. Supports can be job coaching to help the employee familiarize him/herself with the work or vocational counseling to assist with other aspects of maintaining employment. Supports can last up to 90 days after the person is employed.
Urban Enterprise Investment Tax Credit
A qualified business, which is not entitled to an employee tax credit, may be entitled to the investment tax credit. This credit is only available to an employer with fewer than 50 employees. The investment must be at least $5,000 if there are 10 or fewer employees, and increases by $500 for each additional employee. To qualify for the credit, the Urban Enterprise Zones Authority must approve the investment.
A completed Form 301 must be attached to the tax return to validate the investment tax credit claim.
New Jersey Urban Enterprise Investment Tax Credit - Form 301
Urban Enterprise Zone Program
The New Jersey Urban Enterprise Zone Program was created to stimulate economic development and job creation in the State's designated zones. Participating businesses located in these zones are eligible to receive the following incentives: sales tax exemptions for building materials and equipment etc., corporate tax benefits and unemployment rebates.
Very often, people with disabilities live in urban areas that are depressed and in need of revitalization. Hiring disabled individuals from these zones would reverse the unemployment trend among this population and give their neighborhoods a must needed lift.
You must complete the following form to receive the Business Enterprise Zone Tax Credit:
New Jersey Urban Enterprise Zone Tax Credit Form
Urban Transit Hub Tax Credit Program
New Jersey has introduced a new initiative designed to encourage investment and job growth around urban transit hubs, which are defined as heavy rail stations in nine urban municipalities – Camden, East Orange, Elizabeth, Hoboken, Jersey City, Newark, New Brunswick, Paterson, and Trenton. The Urban Transit Hub Tax Credit Program provides tax credits equal to 80 percent to 100 percent of the qualified capital investments made within an eight-year period. Taxpayers may apply 10 percent of the total credit amount per year over a ten-year period against their corporate business tax, insurance premiums tax, or gross income tax liability.
Growth generated by this program can be jobs for people with disabilities.
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