While many eyes in the Tri-state area have been on the business tax situation in New York, there is another state getting on the bandwagon.
A recent article from the New York Times highlighted new tax breaks that could be passed through New Jersey. The goal is to encourage more businesses to stay or startup in the state instead of fleeing to another state.
Called Grow New Jersey, the plan calls for a consolidation and expansion of several programs that would make companies eligible for $300 million in tax credits per project. Initially approved last September, companies started seeing some of this money last month.
It allows businesses of any size to apply for a 10-year credit, with the main qualification being a plan to stay or move to the state. Other factors like location, industry and workforce size will affect the number of credits available.
"This is really substantial — it isn't a tax credit you can lose, because you can sell them, so that is very appealing," said Dan Breen, an executive vice president for business and economic incentives for Jones Lang LaSalle. "I have had some clients that are now looking at New Jersey that might not have otherwise, because of the difference in the incentive environment."
This could mean a rush of businesses looking to set up shop in Hoboken and Jersey City instead of hubs like Manhattan. These companies can still take advantage of IT consulting firms in New York City that offer the same service in areas like New Jersey.