What job creation and retention incentives are available to New Jersey businesses?
BRRAG Tax Credit Certificate Transfer Program
Note: This program is not active—it is in a compliance period.
Administered by the EDA, the BRRAG Tax Credit Certificate Transfer Program allows companies with unusable tax credits to sell the credits to other businesses. The tax credits may be used by the buying company in exchange for cash equal to at least 75 percent of the amount of the surrendered tax credit.
BRRAG Sales and Use Tax Exemption Program (BRRAG STX)
Administered by the EDA, this program is often used in conjunction with the BRRAG Tax Credit Program. An approved company can receive a sales tax exemption certificate, which applies only to property purchased for installation at the approved project site. A business receiving the BRRAG STX must:
• Have 1,000 or more jobs in New Jersey and relocate 500 or more employees within the state;
• Life science, pharmaceutical, and manufacturing companies are eligible for BRRAG STX if they relocate 250 employees or more to a new R&D facility, a new headquarters, or a new manufacturing facility;
• Offer its employees’ health care benefits;
• Have been in business in New Jersey for at least 10 years;
• Demonstrate that the grant is a “material factor” in moving the relocation project forward in New Jersey;
• Secure approval for the BRRAG STX from EDA’s Board of Directors prior to signing a lease, entering into a purchase contract, or otherwise committing to the site in New Jersey that will host the relocation project.
• Enter into any construction contracts associated with the project using “prevailing wage” labor rates; and
• Retain the relocation project jobs for a five-year period.