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Financing & Incentives > Tax Credit Programs > Geographic & Urban Redevelopment Tax Credit Programs
Geographic & Urban Redevelopment Tax Credit Programs
  • Urban Transit Hub Tax Credit Program
    New Jersey recently introduced a new initiative designed to encourage investment and job growth around urban transit hubs, which are defined as heavy rail stations in nine urban municipalities– Camden, East Orange, Elizabeth, Hoboken, Jersey City, Newark, New Brunswick, Paterson, and Trenton. The Urban Transit Hub Tax Credit Program provides tax credits equal to 80 percent to 100 percent of the qualified capital investments made within an eight-year period. Taxpayers may apply 10 percent of the total credit amount per year over a ten-year period against their corporate business tax, insurance premiums tax, or gross income tax liability.

    Program requirements include:

    • A business or developer must make a capital investment of at least $75 million in a qualified facility.
    • The capital investment project must be located within a ½-mile radius of a designated commuter rail hub in any of the nine eligible municipalities.
    • The business receiving the Urban Transit Hub Tax Credit must employ at least 250 full-time workers at the facility.
    • A business creating and maintaining at least 200 new jobs to the state at a qualified facility may be eligible to receive a tax credit of up to 100 percent of the capital investment.
    • Tenants that employ at least 250 full-time workers in a qualified facility may also receive Transit Hub Tax Credits if they occupy space in the facility that represents at least $25 million of the overall capital investment of $75 million or more.

    Survey maps are available that identify the ½-mile radius around eligible transit hubs in each of the nine Transit Hub cities: Camden, East Orange, Elizabeth, Hoboken, Jersey City, Newark, New Brunswick, Paterson and Trenton. (Note: Applicants are advised that these surveys are approximate representations of the urban transit hubs and are offered only as general guidance for potential program applicants.)

    To learn more about the Urban Transit Hub Tax Credit Program, designated districts, and qualification requirements, call 866-534-7789.

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  • Urban Enterprise Zone Employee Tax Credit
    A taxpayer that has been designated as a “qualified business” as defined in the New Jersey Urban Enterprise Zones Act, N.J.S.A. 52:27H-60 et seq., may qualify for either an employee tax credit or an investment tax credit. To be eligible, the Urban Enterprise Zones Authority must have certified the taxpayer as a qualified business. Certification is renewable annually.

    The urban enterprise zones are located in Asbury Park, Bayonne City, Bridgeton, Camden, Carteret, East Orange, Elizabeth, Gloucester City, Guttenberg, Hillside, Irvington, Jersey City, Kearny, Lakewood, Long Branch, Millville, Mount Holly, Newark, New Brunswick, North Bergen, Orange, Passaic, Paterson, Pemberton Township, Perth Amboy, Phillipsburg, Plainfield, Pleasantville, Roselle Borough, Trenton, Union City, Vineland, West New York, and the Joint Wildwoods. Further information can be obtained by calling 609-292-1912.

     

    Specific information on these tax credits can be obtained from the Regulatory Services Branch, PO Box 269, Trenton, NJ 08695-0269, phone 609-292-5994.

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  • Urban Enterprise Investment Tax Credit
    Investment Tax Credit - Form 301: A qualified business, which is not entitled to an employee tax credit, may be entitled to the investment tax credit. This credit is only available to an employer with fewer than 50 employees. The investment must be at least $5,000 if there are 10 or fewer employees, and increases by $500 for each additional employee. To qualify for the credit, the Urban Enterprise Zones Authority must approve the investment.

     

    A completed  Form 301   [pdf 91 k] must be attached to the tax return to validate the investment tax credit claim.

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  • Redevelopment Authority Tax Credit
    Any taxpayer that is actively engaged in the conduct of business at a location within a project as defined in N.J.S.A. 55:19-1 et seq., and whose business at that location consists primarily of manufacturing or other business that is not retail sales or warehousing oriented, may be entitled to claim the Redevelopment Authority Project Tax Credit. This credit is allowed in the tax year next following the tax year of qualification.

     

    To claim the credit, the taxpayer must complete Form 302  [pdf 123] and attach it to the tax return.
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  • Neighborhood Revitalization State Tax Credit
    A taxpayer that contributes financial assistance to a nonprofit sponsor may be granted a certificate authorizing a tax credit that may be used to offset their corporation business tax liability. The tax credit may be granted in an amount up to 50% of the approved assistance provided to a nonprofit organization to implement a qualified project that is part of an approved neighborhood preservation and revitalization plan. The credit may not exceed $500,000 for any taxable year.

    To claim this credit, the taxpayer must complete Form 311  [pdf 63k] and attach it to the tax return.

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  • Economic Recovery Tax Credit
    A taxpayer that is engaged in the conduct of business within a qualified municipality and who is not receiving a benefit under the “New Jersey Urban Enterprise Zones Act” may claim a tax credit equal to $2,500 for each new full-time position at that location in credit year one and $1,250 for each new full-time position at that location in credit year two.

     

    To claim this credit, the taxpayer must complete Form 313   [pdf 135k] and attach it to the tax return.

     

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