Credits/Incentives:
New Jersey: New Law Extends and Revises Remote Work-Related Accommodations for Some Programs

A.B. 4046, signed by gov. 7/10/24. New law extends certain remote work-related accommodations and waivers afforded to businesses participating in New Jersey’s Business Employment Incentive Program, Business Retention and Relocation Assistance Grant Program, Grow New Jersey Assistance Program, and Urban Transit Hub Program – all of which are administered by the New Jersey Economic Development Authority (EDA) – for purposes of meeting their respective program requirements to create or retain a certain number of full-time jobs at a qualified business facility. Under the new law, rather than providing for waiver of some job-related requirements under certain conditions only through March 31, 2024, such authorization is extended for the tax period beginning on April 1, 2024, and for all subsequent tax periods, for any business located outside an enhanced area or government-restricted municipality that has entered into an incentive agreement, provided that:

• For a qualified business facility located outside an enhanced area or government-restricted municipality, any full-time employee employed by the business spends at least 40% of the employee’s time at the qualified business facility during the tax period;
• The business extends by two years the term of its commitment period beyond the time set forth in the incentive agreement; and
• The business makes a non-refundable payment to the EDA in an amount equal to 10% of the maximum amount of the tax credit that the business may receive for the tax period.

Another provision in the legislation permits a business that participates in the Grow New Jersey Assistance Program or the Urban Transit Hub Program, and which has elected to modify its obligations under an incentive agreement pursuant to P.L.2022, c.134, to request, before December 31, 2024, to reduce the number of statewide employees specified in the incentive agreement under certain circumstances. Please contact us with any questions.