Emerge Program Guide: Jobs-Based Tax Credits in NJ

While ASPIRE focuses on development costs, the Emerge Program is New Jersey's primary tool for job creation and retention. For developers with commercial tenants or businesses looking to relocate, Emerge can provide up to $8,000 per job, per year in tax credits.

What is Emerge?

Part of the Economic Recovery Act of 2020, Emerge is a jobs-based tax credit program administered by the NJEDA. It is designed to encourage economic development by providing per-job tax credits for up to 7 years. The program is robust, flexible, and targeted at high-growth industries and distressed communities.

Eligibility Requirements

To qualify, a project must meet specific job creation and capital investment thresholds.

Job Creation Thresholds

• New Jobs: Generally requires creating 35 new full-time jobs.
• Targeted Industries: For technology, life sciences, manufacturing, and other key sectors, the threshold drops to 25 new jobs.
• Retained Jobs: Projects can also qualify based on retained jobs, but the thresholds are higher (e.g., 500+ retained jobs in non-distressed areas, 150+ in Government Restricted Municipalities).

Capital Investment

You must invest capital into the facility, ranging from:

• $20 - $60 per sq. ft. for rehabilitation projects.
• $60 - $120 per sq. ft. for new construction.

Calculating the Award

The Emerge award is built on a "Base + Bonus" structure. The total award is the sum of the base amount plus any applicable bonuses, capped at a maximum per-job amount.

Strategic Considerations

The "Net Benefit" Test

Like ASPIRE, Emerge projects must demonstrate a net positive economic benefit to the state. The project must generate tax revenues (income tax, sales tax, etc.) equal to 200% to 400% of the tax credit award, depending on the location.

Remote Work Flexibility

Recognizing modern work patterns, Emerge allows employees to spend up to 20% of their time working remotely (outside the qualified facility) while still counting as eligible full-time jobs. This is a crucial feature for tech and office tenants.

Transferability

Emerge tax credits are fully transferable. They can be sold to other NJ taxpayers (typically at 85-90 cents on the dollar) to monetize the incentive and generate upfront capital.