December 28, 2020
As seen in this article, “Much has been made of the new tax
incentive programs that are a part of the New Jersey Economic Recovery Act of
2020, the six-year, $11.5 billion package that was passed by the Legislature
and signed by Gov. Phil Murphy last week.
“But, what if you have a signed award from a previous
incentive, Grow New Jersey, and now face issues caused by the economic downturn
from the COVID-19 pandemic? There’s help for you, too.
“Companies who have been recipients of Grow N.J. awards are now
able to suspend their awards, adjust them — or even terminate them.
“So said Ted Zangari, the chair of the real estate practice at
Sills Cummis & Gross P.C.
“‘Lost in all the coverage of the new incentives programs is
news that the bill includes COVID-related relief for businesses that had come
to New Jersey or remained here in reliance on the former incentive program,
Grow New Jersey,’ Zangari said.
“Most specifically, there is language pertaining to job
requirements, which Zangari said could prove to the biggest obstacle post-pandemic.
“‘Many GROW recipients have had to reduce employee headcount as
a result of the pandemic, which — in many cases — jeopardizes their incentive
awards, which are calculated based on the number of full-time employees and are
paid-out in tax credits, typically over 10 years,’ he said.”
The article goes on to
outline the options for relief for businesses that had to downsize
because of the pandemic.
“Cecilia Lassiter, a co-chair of the
state and local tax and incentive practice at Sills Cummis, said businesses
looking to take advantage of these provisions need to understand they all have
a limited shelf life — some coming as quickly as April 2021.
“‘These relief options are extremely time-sensitive, so
businesses would be wise to consider their options immediately,’ she said.”