A — November 22 - December 5, 2013 — Professional Services — Mid Atlantic Real Estate Journal
www.marejournal.com
A ttorney
By Nicholas F. Talvacchia, Cooper Levenson, Attorneys at Law Expanded tax credit and incentives for job creation and redevelopment in 2013 act
T
he New Jersey Economic OpportunityAct of 2013, signed by Governor
by the New Jersey Economic Development Authority. The Act phases out the business employment incentive (BEIP), program, the business reten- tion and relocation assistance grant program (BRRPG) and the urban transit hub tax credit (UTHTC) program. I. Grow New Jersey The Grow New Jersey Pro- gram is a tax incentive program which provides tax credits for the creation of new jobs or re- tention of existing jobs. Eligibility To be eligible for tax credits a project must be (i) located in a “qualified incentive area”;
(ii) must be a “qualified busi- ness facility”; (iii) meet the minimum capital investment requirement; and (iv) create or retain a specified minimum amount of full-time jobs. Proj- ects that a solely a point of final purchase retail facilities are generally not eligible for a grant of tax credits. Qualified Incentive Area •Mega Projects: Amega-proj- ect is defined as manufacturing, energy, defense and maritime businesses in port district, or business in the aviation in- dustry located in an Aviation District with an investment
of at least $20 million and the creation or retention of at least 250 jobs or 1,000 jobs created or retained. •GardenStateGrowthZones: These zones are Camden, Tren- ton, Paterson and Passaic. • Distressed Municipalities: Municipalities qualified to receive assistance under the municipal Urban Eight Project, under the supervision of the local finance board, identified by DCA. • Priority Areas: Planning Area 1 (Metropolitan); Plan- ning Area 2 (Suburban); A designated center under the State Development and Rede-
continued on page 14A • 35 new or 50 retained full-time jobs for any other velopment Plan or designated growth center; and a deep poverty pocket, port district, a federally owned land approved for foreclosure under the fed- eral based realignment closing commission action, disaster recovery project, a qualified incubator project, a tourism destination project or transit orientated project and areas that contain vacant commercial buildings having over 400,000 s/f of office, lab or industrial space. • Other EligibleAreas: These areas include an aviation dis- trict, Planning Area 3, certain portions of the Meadowlands, Pinelands and Highlands and certain planning areas. Capital Investment The minimum capital invest- ment requirements are as fol- lows: (i) $20 psf for the rehabili- tation of an existing industrial premise; (ii) $60 psf for new construction of an industrial premise; (iii) $40 psf for the rehabilitation of an existing non-industrial premise; and (iv) $120 psf for new construction of an non-industrial premise. The minimum capital investment is reduced by 1/3 for projects located in a Garden State Grow Zone or projects located in eight South Jersey counties. Qualified Business Facility A qualified business facil- ity is a building or complex of buildings located within a “qualified incentive area” and in connection with a business not engaged in a “final point of sale retail businesses”. The Act, however, provides the following exceptions: in a Garden State Growth Zone or the Atlantic City Tourism District, up to 7.5% of retail facilities included in a mixed use project are eligible for tax credits along with non-retail facilities. TheAct also expressly defines certain types of proj- ects including a supermarket project located in a Garden State Grow Zone or a tour- ism destination project in the Atlantic City Tourism District or a catalog distribution center as not being a point of a final purchase retail facility. Job/Creation/Retention • 10 new or 25 retained full- time jobs for a technology start- up company or amanufacturing company. • 25 new or 35 retained full- time jobs for a business engaged in a targeted industry.
Christie on Se p t emb e r 18, 2013, con- solidates and expands cer- tain New Jer- sey incentive programs for job creation and redevel- opment. The
Nicholas F. Talvacchia
Act expands the Grow New Jersey Assistance Program and the Economic Redevelop- ment Growth (“ERG”) grant program, both administered
NEW JERSEY IS OPEN FOR BUSINESS! OUR CLIMATE FOR NEW DEVELOPMENT IS BETTER THAN EVER!
Let us help with your project. Land use, environmental, redevelopment, tax
Our Land Use attorneys, led by Department Chair Nicholas Talvacchia, help developers obtain local and state approvals for projects and development incentives for those projects. Nick has extensive experience in obtaining land use approvals, including state environmental permits. He has negotiated a multitude of redevelopment agreements. Clients depend on Nick to guide them through the application process: • Municipal Land Use Throughout New Jersey • New Jersey Department of Environmental Protection • Coastal Area Facility Review Act ("CAFRA") • Green Acres Program, including diversion applications • Waterfront Development permits • New Jersey Department of Transportation
incentives, and more. Representative projects - $2.4 billion oceanfront resort redevelopment project
- $280 million 600 room hotel tower - $35.5 million oceanfront pier with restaurant and retail - $50 million 280 room hotel tower - $70 million 359 room hotel tower casino expansion - $245 million 1200 room hotel tower - telecommunications/cell site approvals for major cell phone carriers - $10 million electric substation - national chain approvals, including home improvement and pharmacy stores
Nick has successfully litigated denials of state and local permits.
Contact Nick at 609.572.7544 or ntalvacchia@cooperlevenson.com
www.cooperlevenson.com NEW JERSEY PENNSYLVANIA DELAWARE NEVADA
Made with FlippingBook - Online Brochure Maker