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In December, 2008, New Jersey created a new business grant aimed at those companies that either make capital investments in the state, or create new jobs in the state (or both). The InvestNJ Business Grant Program is a $120 million grant program designed to help companies of all sizes through these tough economic times and promote growth within the state. Of the $120 million, $50 million has been allocated for Job Creation grants, and $70 million has been allocated for Capital Investment grants. A summary of this program is as follows:

Invest in NJ Business Grant Program:

1. A cash grant (NOT a tax credit)
2. Two separate possible grants:
   1. Job Creation
   2. Capital Investment
3. The Job Creation grant is $3,000 / employee for each new full-time job created up to $500,000 / applicant.
4. The Capital Investment grant is 7% of qualified capital investments up to $1 million / applicant.
5. Job Creation grant criteria:
   1. Company must have operated in NJ continuously for at least prior 2 years
   2. Must have at least 5 FT employees
   3. The grant only applies to net new hires over a 12 month period
   4. The employees must be covered under the company’s group health plan
6. Capital Expenditures grant criteria:
   1. Company must have operated in NJ continuously for at least prior 2 years
   2. Must have at least 5 FT employees
   3. Capital investment must be maintained for at least 1 full year
   4. Capital expenditures must be at least $5,000
7. The application is fairly short (3 pages) and must be done online.
8. These grants are somewhat discretionary, but will be issued on a first come, first served basis for the most part.

Application:

The application must be completed online through the EDA’s website: http://www.njeda.com/web/default.aspx

The time to complete the application is when you are ready to begin hiring or have set plans for a capital investment. Regarding the job creation grants, employment verification is reviewed quarterly. Job creation grants will be disbursed after the eligible positions have been maintained for 12 months and verified through the Department of Labor and Workforce Development. Tax clearance certificates are also required to ensure that companies are current with their tax obligations. Once all documentation has been received and verified, a grant agreement will be issued. Once this agreement is executed, the funds will be disbursed.

For capital investment grants, the following information must be provided: copies of invoices, a copy of your original application, a completed tax clearance certificate application, and a completed debarment questionnaire. Once these items are reviewed and approved, a grant agreement will be issued. Once the grant agreement is fully executed, companies may request disbursement of the funds.

Interested companies should be aware that there are other state programs which may be applicable and which should be evaluated depending on individual facts and circumstances. If anyone has any questions regarding these programs, please contact a member of Amper, Politziner & Mattia’s State and Local Tax Department:

John Genz (732) 919-1400 ext. 4048
Gary C. Bingel (908) 218-5002 ext. 2332
Steve Bercovich (212) 682-1600 ext. 6367
Paul Weintraub (908) 218-5002 ext.