Applications are now open for the Emerge program, a new jobs-based tax credit program created under the New Jersey Economic Recovery Act (ERA) of 2020 and administered by the New Jersey Economic Development Authority (NJEDA). The Emerge program will drive economic development in New Jersey by making tax credits available to projects that invest private capital into the state and create good-paying jobs, with a focus on the State’s priority sectors.
To be eligible for Emerge support, a project must:
- Create at least 35 new, full-time jobs. In some circumstances, this job creation requirement may be lower if a business is primarily engaged in a targeted industry, or if a business meets the definition of a “small business” as defined in the Emerge Program rules.
- Be located in an Eligible Incentive location.
- Meet minimum capital investment requirements.
- Emerge tax credits must yield a minimum net positive economic benefit to the state of 200 percent to 400 percent depending on project location.
- Ensure that at least 80 percent of incented employees’ work time is spent in New Jersey and 80 percent of the withholdings of new or retained full-time jobs are subject to the ‘New Jersey Gross Income Tax Act’.
- Ensure the Qualified Business Facility can accommodate at least 50 percent of incented jobs.
- Commit to stay at the Qualified Business Facility for 1.5 times the eligibility period.
- Demonstrate that the award of the tax credit is a “material factor” in the decision to create or retain at least the minimum number of full-time jobs.
The Emerge program application, as well as complete rules, eligibility requirements, award sizes, and other information, are available at https://www.njeda.com/emerge