New Jersey Development Incentives Making a Comeback
Development incentives are nothing new in New Jersey. In fact, they have been part of the state’s process for attracting businesses for many years. However, when the 2013 Economic Opportunity Act was allowed to expire in July of 2019, no such programs were available for businesses moving to the state. Many were left wondering what, if anything, would take the place of the Grow NJ program or the Economic Redevelopment and Growth (”ERG”) grants. With the New Jersey Economic Recovery Act of 2020, which Governor Murphy signed into law in January of 2021, Grow NJ, ERG, and other programs have returned with new programs joining them.
The New Jersey Economic Development Authority (“NJEDA”) provides a detailed breakdown on each program here and will, as before, manage these programs.
Smaller programs are already underway, such as the Emerge Program, which announced its first award at the end of September. However, for the major programs, applications are still on the horizon.
The Aspire Program, intended as successor to the ERG, has published draft program rules for public feedback. The NJEDA projects that by the end of this month, the Main Street Recovery Finance Program, a fund to support micro businesses in New Jersey and their partnering entities, will have applications online, ready for submission.
With the return of development incentives, New Jersey is again poised to attract businesses and investment. The State’s hope is that these new programs will prove as effective as those that expired in 2019.
As the law continues to evolve on these matters, please note that this article is current as of date and time of publication and may not reflect subsequent developments. The content and interpretation of the issues addressed herein is subject to change. Cole Schotz P.C. disclaims any and all liability with respect to actions taken or not taken based on any or all of the contents of this publication to the fullest extent permitted by law. This is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Do not act or refrain from acting upon the information contained in this publication without obtaining legal, financial and tax advice. For further information, please do not hesitate to reach out to your firm contact or to any of the attorneys listed in this publication.
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