Jersey offers an ideal location for business growth and development,
the lowest operating costs in the region, and an array of financial,
technical and training incentives designed to make New Jersey
businesses among the most competitive in the world.
New Jersey has one of the lowest corporate income tax
structures in the Northeast. There is no net worth tax, no business
personal tax, no commercial rent or occupancy tax and no retail
gross receipts tax. Personal income taxes are among the region's
Legislation recently signed modifies New Jersey's tax code by:
for a reduction in the State's Personal Gross Income Tax
Rates with the Governor's commitment to future tax cuts.
the minimum taxable income under the Personal Gross Income
the Corporation Income Tax Surcharge
aggressive job and equipment tax credits
Tax Abatement and Exemptions
New Jersey law authorizes municipalities, under the
State Constitution, to provide property tax abatements for commercial
and industrial properties in areas in need of redevelopment.
Jobs Investment Tax Credits
Companies that make certain investments in new or expanded
business facilities that are directly related to the creation
of new jobs may be eligible for credits against their New Jersey
Corporation Business Tax Liability. Other significant job tax
credits are available for firms expanding, retaining or relocating
new jobs in New Jersey.
Relocation Assistance Grants can be made available
to reimburse businesses for relocation costs associated
with the creation of a minimum of 25 new full-time jobs
in New Jersey. The grant can be for up to 50% of the total
allowable relocation costs or $200 per job created, whichever
is less, and may not exceed 80% of the projected new income
tax revenues from the jobs created.
Employment Incentive Grants can be made available
to businesses that create at least 25 new full-time jobs
in an urban-aid community or at least 75 new jobs elsewhere
in New Jersey. The New Jersey Economic Development Authority
can enter into agreements with qualifying businesses, for
up to 10 years, to make direct grants equal to 10% to 80%
of the state income taxes withheld from the newly hired
Equipment and Employment Investment Tax Credit
Certain investments made by companies for manufacturing
equipment with a recovery life of four years or more are eligible
for a credit against the New Jersey Corporation Business Tax
of Subchapter S Status for Corporations
New Jersey "S" corporations are provided
a reduced corporation tax rate. The law defines the amount of
minimum tax imposed on domestic and foreign corporations, determination
of net income and the legal requirements to become an "S"
and Development Tax Credit for Corporation Business Tax
Businesses may be eligible for a credit against New
Jersey's Corporation Business Tax liability for certain increased
research expenditures in the state. The base period amounts
and qualified expenditures are determined by the guidelines
for the federal research credit.
Jersey Limited Liability Company Act
Effective January 26, 1994, a domestic or foreign LLC
is taxed in accordance with the corresponding federal classification
and provides for LLC's to follow federal treatment of certain
In promoting growth and development, New Jersey has
created an Urban Enterprise Zones (UEZ) in Perth Amboy and Carteret.
Companies that are located within the zone and create jobs are
eligible for a number of benefits and zone incentives that include:
one-time corporation tax credit of $1,500 for the full-time
hiring of residents of a city where a zone is located who
have been unemployed or dependent upon public assistance
for at least 90 days, or
one-time corporation tax credit of $500 for hiring certain
full-time employees who are residents of any UEZ municipality
unemployment insurance costs, for certain new employees
tax exemptions for materials and for tangible personal property
New Jersey's major utility companies provide a number
of incentives, including flex rates, energy credits and rate
discounts or waivers, for businesses that build or expand facilities
and create jobs in New Jersey. Certain programs encourage the
utilization of vacant industrial and commercial real estate.
Electric credits are provided to firms which lease or purchase,
and occupy, a minimum amount of vacant space as designated by
the utility. Other programs apply "off-peak employment"
credits, to help those companies starting or resuming a second
or third shift during off-peak hours.
Education and Training
Recognizing the need to help employers remain competitive
in the global economy, New Jersey created the Workforce Development
Partnership Program. Administered by the New Jersey Department
of Labor, the program utilizes a small portion of employer and
employee contributions to the Unemployment Insurance Fund to
support comprehensive worker education and training efforts.
This innovative program, cited as a national model among workforce
preparation initiatives, contains a Customized Training component
which is structured to meet the demands of an individual company's
Financial assistance is available to qualifying businesses in
the form of matching grants and other reimbursements, to help
defray the costs of providing vocational, technical and other
skills training for workers.
One-Stop Career Centers, located in New Brunswick and Perth
Amboy, provide employment-related services to Middlesex County
residents and businesses. Each location houses a combination
of state and local agencies, including the NJ Department of
Labor & Workforce Development, the Middlesex County Employment
& Training Department, the NJ Department of Vocational Rehabilitation,
and the NJ Unemployment Insurance Division. The One-Stop Career
Centers offer a full range of services free of charge, including
career counseling, reemployment workshops, on-the-job training
opportunities, recruitment assistance, and information on tax
credits and customized training grants. State job listings and
county literacy program information are also available. For
more information, including locations, hours, and phone numbers
for each One-Stop Career Center, please visit the Middlesex
County Employment & Training Department website, http://co.middlesex.nj.us/employment/.