On Thursday, Governor Chris Christie signed bipartisan legislation authorizing the creation of the “Transformative Headquarters Economic Assistance Program.” The new program, which complements the Grow New Jersey Assistance Program (Grow NJ), is meant to encourage economic development and new job creation at a corporate headquarters that is transformational to the regional economy.

To be eligible under the new program, a business must create at least 30,000 new full-time jobs, and spend at least $3 billion in capital investment. While there is no monetary cap on the value of credits under the new program, the total amount of the tax credits for each new full-time job is $10,000 per year (for up to 10 years).

Similar to the Grow NJ program, an applicant’s chief executive officer (or highest ranking U.S. officer) is required to demonstrate that the award of tax credits will be a material factor in the decision to create the jobs listed in the application. In addition, the award of tax credits under the new program must yield a net positive benefit to the State equaling at least 115 percent of the requested tax credit amount. The bill requires a business to submit an application to the New Jersey Economic Development Authority (NJEDA) prior to July 1, 2019.

While the legislation does not specifically name the Amazon as the intended recipient of the incentive, the new program was created to help New Jersey compete to become the home of Amazon HQ2. This bipartisan bill could help make New Jersey a serious contender.

If interested in learning more about this program and other economic development incentive programs, please do not hesitate to contact Murphy Partners LLP at (973) 877-6984 or info@murphyllp.com.