By: Ted Zangari and Cecilia I. Lassiter
Today Governor Murphy signed into law A4929/S3379, which extends the COVID waiver allowing employees to work from home 100% of the time in 2022 and 90% of the time in 2023 for the Grow NJ program, UTHTC Program, BEIP, and BRAGG. To take advantage of this election, employees must spend at least 10% of their time at the QBF in 2023 and companies must pay 5% of the 2022 annual tax credit award to the EDA to distribute to local businesses. The new law also allows companies until 12/31/23 to elect to terminate their Incentive Agreement due to COVID without any clawbacks or other reprisals. Companies can elect to terminate their Incentive Agreement beginning in tax year 2020 or any subsequent tax year. In addition, the new law allows companies to suspend their tax credit for the years 2020, 2021, 2022, and 2023 and move it to year 11 or later.