NJEDA Board Approves Rules for Emerge Job Creation Tax Credit Program
On May 12, the New Jersey Economic Development Authority (NJEDA) Board approved the creation of the Emerge program, a new jobs-based tax credit program created under the Economic Recovery Act (ERA) of 2020. The Emerge program will make tax credits available to projects that invest private capital into the state and create good-paying jobs, with a focus on the State’s priority sectors. As authorized by the ERA, the Board approved rules that will be effective immediately for a short-term duration, enabling the NJEDA to start accepting Emerge program applications in the coming weeks. Concurrently, the Board also approved publishing the rules for public comment prior to adopting longer-term final rules.
The complete rules for the Emerge program, including eligibility, award sizes, and other information, are available at https://www.njeda.com/emerge.
To be eligible for tax credits under the Emerge program, projects must create at least 35 new, full-time jobs. This job creation requirement is lower if a business is primarily engaged in a targeted industry or if a business meets the definition of a “small business” in the program rules. Additionally, at least 80 percent of incented employees’ work time must be spent in New Jersey, and the business must commit to stay in the incented location for at least 1.5 times the duration of the tax credit period. Projects may make an equivalent donation to a local Recovery Infrastructure Fund in place of investing in their project’s facility. Some requirements are relaxed for small businesses.