BUSINESS INCENTIVE PROGRAMS

Aimed at making New Jersey more competitive in attracting and retaining businesses, two programs give the business community additional incentives for choosing our state to conduct and expand their operations:

1. Business Employment Incentive Program (BEIP)
   The New Jersey Economic Development Authority (EDA) may make direct payments in the form of grants to expanding or relocating businesses that will create jobs in New Jersey. The incentive grant, which may be for up to 10 years, will equal 10% to 80% of the total amount of state income taxes withheld by the businesses during the calendar year for the newly hired employees. In the base years, the company must create at least 25 new jobs or at least 10 new jobs for a biotech firm or other emerging technology company. Bonus points incentives apply for applicants located in smart growth area and for businesses that create over 500 jobs or invest over $20 million. EDA is directed to give greater consideration to positions that average 1.5 times the minimum wage during the grant agreement. Qualifying businesses must maintain a project in New Jersey for at least 1.5 times the number of years of the grant. No grant monies will be disbursed until the State Treasurer certifies that the amount withholdings received from the business at least equals the grant amount. Businesses receiving relocation grants are not eligible unless approved by the State Treasurer. Grant assistance from this and other programs may not exceed 80% of a business's withholdings unless approved by the Treasurer. Point of final purchase retail facilities are not eligible for BEIP. Annual receipt of the BEIP grant is subject to an appropriation from the General Fund to the EDA.

   On the New Look of the BEIP Program

2. Business Relocation Assistance Grant program (BRAG)
   The Department of Commerce and Economic Development is authorized to provide relocation grants to businesses that create a minimum of 25 new full tine jobs in New Jersey. Both businesses relocating to New Jersey and in-state businesses that move to larger facilities within the state may be eligible for grants. Grants may be provided for up to 50% of the allowable relocation costs up to a maximum of 5200 per job created. Grants may not exceed 80% of the new 'income tax revenues projected from the newly created jobs unless approved by the State Treasurer. Funds will not be disbursed until the State Treasurer certifies that the amount of new income tax revenue received in that year equals or exceeds the grant amount. Employers receiving BEIP grants are not eligible for this assistance unless approved by the State Treasurer. Greater consideration will be given to employees who earn an average of at least 1.5 times the minimum hourly wage.