By: Ted Zangari and Cecilia I. Lassiter
NJ has long offered out-of-state companies financial incentives to relocate to the state. Now, the state has taken that effort a step further with a pilot program designed to incentivize out-of-state businesses to re-assign those employees who are NJ residents but work outside the state, to an office space located in NJ.
The enabling legislation is awaiting enactment by Gov. Murphy but here’s our early take on how the program will work:
- The business must have at least 25 full-time employees and be principally located out-of-state.
- The business must commit to re-assigning to a NJ location, a minimum number of its employees who live in NJ but are currently assigned to a location outside the state.
- The business will receive a grant of up to $500,000, based on the NJ Gross Income Tax withholdings of the resident-employees who are re-assigned by the business to a NJ location.
- Grants under the program are capped at $35 Million per year; preference will be given to businesses that acquire or lease office premises and make improvements to that space (as distinguished from co-working or other short-term space), and to businesses that will provide bonuses to, or increase the compensation of, the resident-employees being relocated to the state.
- Applications must be submitted by July 1, 2028.
- The NJ Economic Development Authority will administer the pilot program.