September 19, 2013
RE: Governor Signs Economic Opportunity Act of 2013
On Wednesday, the Governor signed into law A-3680/S-2583, the Economic Opportunity Act of 2013.
Essentially, the new legislation streamlines five State economic incentives programs into two, the Grow New Jersey (Grow NJ) and Economic Redevelopment and Growth (ERG.) GrowNJ is the State program focused on recruiting employers from outside the State. ERG is designed to retain businesses within the State.
The Act phases out, through the end of 2013, the Business Retention and Relocation Assistance Grant Program, the Business Employment Incentive Program, and the Urban Transit Hub Tax Credit Program.
The enhanced Grow NJ and ERG programs will be administered by the New Jersey Economic Development Authority (EDA) and are extended through July 2019.
The new programs also seek to encourage development and job growth in “Garden State Growth Zones," where projects will need to meet lower eligibility criteria and higher incentives. These zones are now located in Camden, Trenton, Passaic City, and Paterson. These cities will also be authorized to grant property tax abatements for new development.
The new law is a significant revision of how the State awards tax incentives to businesses and developers, and it also expands the eligibility for these programs to more municipalities. We anticipate a significant amount of guidance and public outreach to educate the public on the new law. The League will provide links to this information as it becomes available.
There will be a League conference session which will address these new economic development programs, which will be highlighted in upcoming League Conference letters. Questions can be directed to Mike Cerra at 609-695-3481 x120 or firstname.lastname@example.org
Very truly yours,
William G. Dressel, Jr.