In a bid to attract interest from biotech companies to the state, the regulations for the Grow New Jersey Assistance Program, otherwise known as “Grow NJ,” have been amended by the New Jersey Economic Development Authority. Grow NJ provides tax credit awards of $500 to $8,000 per job, per year based on certain criteria. Companies may apply for the credit based on capital investment, location, and jobs created and/or retained.
The favorable amendments were geared toward attracting investment by biotechnology and bio-pharmacy companies that may be working with in-state hospitals and universities and included the following items and definitions:
- Clarification was made to “qualified incubator facilities” to include non-contiguous spaces within a facility and the location within the facility that may change.
- The definition of a “technology start-up company” was clarified to mean that the business is deemed to have started operations on the date the business hired its first full-time employee.
- A non-profit organization may make an application now on behalf of a business that meets the requirements of the tax credit.
- The reporting requirements were also updated to provide that an organization operating a qualified incubator facility that applied on behalf of a business must report the number of full-time employees used in and outside the restricted space used by a technology start-up company.
- The section related to the effect of sale or lease of the qualified facilities was amended to provide that if the business merges with or consolidates with another entity, the resulting or transferee entity shall not be considered the new owner.
Through additions like this to the Grow NJ Program, the state is making inroads to be more business friendly in the Northeast.
TECHNICAL INFORMATION CONTACT:
Allea Newbold
Principal
Ryan
813.228.7100
allea.newbold@ryan.com