Grow N.J. Incentive Recipients Can Delay, Adjust or Terminate Awards…
Grow N.J. Incentive Recipients Can Delay, Adjust or Terminate Awards Because of Pandemic
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.”