EMERGE PROGRAM
Please be advised that the statute extended the Emerge program to March 1, 2029.
The Emerge Program, created under the Economic Recovery Act (ERA) of 2020, encourages economic development in Governor Murphy’s priority sectors and in targeted communities across the New Jersey. The program provides per-job tax credits to projects that invest private capital into the state and create new good-paying jobs (or retain a large number of good-paying jobs).
ELIGIBILITY
To be eligible for Emerge support, a project must:
- Create at least 35 new, full-time jobs. In some circumstances, this job creation requirement may be lower if a business is primarily engaged in a targeted industry, or if a business meets the definition of a “small business” as defined in the Emerge Program rules.
- Be located in an Eligible Incentive location.
- Meet minimum capital investment requirements.
- Emerge tax credits must yield a minimum net positive economic benefit to the state of 200 percent to 400 percent depending on project location.
- Ensure that at least 80 percent of incented employees’ work time is spent in New Jersey and 80 percent of the withholdings of new or retained full-time jobs are subject to the ‘New Jersey Gross Income Tax Act’.
- Ensure the Qualified Business Facility can accommodate at least 50 percent of incented jobs.
- Commit to stay at the Qualified Business Facility for 1.5 times the eligibility period.
- Demonstrate that the award of the tax credit is a “material factor” in the decision to create or retain at least the minimum number of full-time jobs.
AWARD SIZE
Projects under the Emerge and Aspire Programs are subject to a program cap of $1.1 billion per year for six years. The Emerge Program awards are calculated on an annual per job basis, with base credits for new jobs ranging between $500-$4,000 per job depending on project location and other aspects of the project. Bonuses are also available based on project location, industry, and alignment with other policy objectives. These bonuses can increase annual per-job credits to a maximum of $8,000 per job. Jobs that are covered by a labor harmony agreement are eligible for an additional $1,000 bonus over the capped amounts. Tax credits awarded through Emerge can be used to offset Corporate Business Tax or Insurance Premiums Tax or can be transferred for no less than 85 percent of their value or surrendered to NJ Division of Taxation for 90 percent of the value of the credits.
FISCAL AND RESIDENT PROTECTIONS
In order to receive Emerge tax credits, the project must be in good standing with the NJ Department of Labor, NJ Department of Treasury, and the NJ Department of Environmental Protection. Tax credit awards will be reduced if a project pays less than the county median salary and all jobs must pay no less than 30 percent of the host county’s median salary.
All projects that receive tax credits under Emerge must meet minimum environmental standards, meet prevailing wage obligations for all construction workers for two years after the Authority has issued the first certificate of compliance, pay prevailing wages to building service workers for the commitment period of the tax award, and offer health care for employees. All contractors and subcontractors must be registered with Public Works Contractor Registration Act.
Projects that have a total cost of $10 million or more are also required to enter into a Community Benefits Agreement with the NJEDA and the municipality or county in which the project is located. These agreements will be overseen by a Community Advisory Committee specifically created to monitor compliance with the Community Benefits Agreement.
FEES
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Administrative Change, Additions, or Modification to the Tax Credit
Modification | Small projects (1-99 Jobs) | Medium projects (100-249 Jobs) | Large projects (250+ Jobs) | Mega |
Minor | $2,500 | $5,000 | $7,500 | $10,000 |
Major | $7,500 | $15,000 | $25,000 | $35,000 |
Existing Incentive Agreement Termination*
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Click here for a copy of the Emerge Fee Schedule
*A business seeking to terminate an existing incentive agreement in order to participate in an incentive agreement authorized pursuant to the Emerge program.
Minor changes, additions, or modifications to the tax credit, that does not require extensive staff time and Board approval.
Major changes, additions, or modifications to the tax credit, such as those requiring extensive staff time and Board approval.
These are non-refundable application fee, on a tiered basis based on the number of new or retained full-time jobs. Beyond application fees, the Authority sets rates for one-time approval fees; one-time issuance fees, which are paid at the point of initial certification; and annual servicing fees, which are paid for the years in which the Authority is monitoring the project; as well as fees for tax credit transfers, project modifications, and project terminations. All fees are sized based on the number of jobs associated with the project, with larger fee levels for larger projects. In addition, costs associated with certain third-party analyses or reviews utilized to assess the application may be passed along directly to applicants.
APPLICATION PROCESS
Prior to starting the application process we encourage you to read the information available on the website and reach out to an NJEDA representative via the Expression of Interest Form.
To provide interested businesses with clear understanding if a project is a good fit for the Emerge program the NJEDA has established a two-part application process, including a pre-application and a full application. The pre-application allows the NJEDA to conduct a preliminary analysis of the proposed project and ensures that interested businesses are aware of all the program requirements before investing additional time to complete the full application and paying the non-refundable application fee.
You should only fill out a pre-application if you have identified a potential project location in New Jersey. If you have not yet identified a potential project location in New Jersey, it is recommended that you first complete the Expression of Interest Form to speak with an NJEDA representative prior to filling out the pre-application.
Upon completion of this pre-application, an Emerge program team member will review the submitted information and determine if your project is a good fit for the program. If there is a good fit, the Emerge program team will suggest setting up a pre-application meeting before proceeding to the full application. Additional NJEDA programs will be presented to you in the event it is determined that your project is not a good fit for Emerge.
To provide a thorough review, please allow our team 3 to 4 days to provide you with an update after submitting your pre-application.
A sample of the full application can be found here: It is recommended that potential applicants review the full application requirements before submitting their pre-application. It is also highly recommended that applicants moving forward to submit the full application, draft responses and gather information based upon the sample application before starting to fill out the online application.
Once your full application has been submitted and the non-refundable application fee has been received, NJEDA will conduct a completeness review of your application.. After NJEDA deems an application complete, the applicant’s CEO will be asked to digitally confirm that all information provided in the application is accurate. After that, NJEDA will begin a full application review including detailed review of all documents and additional staff due diligence.
While we will work as diligently as possible, full application reviews may take up to several months based upon factors such as completeness of the responses included in the application and responsiveness on requests for additional information or documentation. During this time NJEDA may reach out to you if additional information is needed to complete your application review.
In the event of any questions, please contact: emerge@njeda.com
FORMS
- CEO Certification
- Letter of Intent-Template
- Letter of Intent-Cover Letter
- Cost Comparison Worksheet-Template
- Project Status Update Form
- NDA Confidential Agreement Form
- The NJEDA will only sign the approved NJEDA standard NDA without any modifications or changes. All disclosures are reviewed by NJEDA’s legal department to ensure that the NDA is not altered and meets the approved standards set forth by the NJ Attorneys General’s Office. NJEDA is an authority of the State of New Jersey which is subject to the N.J. Open Public Records Act (N.J.S.A. 47:1A-A et. Seq.) A copy of the act is made available at http://www.state.nj.us/grc/act.html.
PROGRAM RULES
Adopted New Rules / Amendments
Adopted Amendments: N.J.A.C. 19:31-22.9 and 22.15
The New Jersey Economic Development Authority (“NJEDA” or “Authority”) proposed amendments to the rules implementing the Emerge program pursuant to recently enacted statutory revisions at P.L. 2021, c. 160 (approved July 2, 2021), at 54 N.J.R. 124(a). The public comment period ended March 19, 2022. Subsequently, while adopting the majority of the original notice of proposal, the Authority proposed to make additional changes upon adoption to N.J.A.C. 19:31-22.9 and 22.15, at 54 N.J.R. 900(a). The public comment period for those changes ended on July 15, 2022.
The NJEDA has adopted amendments to the rules implementing the Emerge program pursuant to recently enacted statutory revisions in P.L. 2021, c. 160 (approved July 2, 2021). In accordance with the New Jersey Economic Recovery Act of 2020, P.L. 2020, c. 156, the NJEDA specially adopted and concurrently proposed the Emerge program rules on May 20, 2021, and adopted the concurrently proposed rules on December 15, 2021, as simultaneously noticed along with these proposed amendments. Under the New Jersey Economic Recovery Act of 2020, the Emerge Program Act, sections 68 through 81 of P.L. 2020, c. 156, was established to encourage economic development in the State’s priority sectors by providing per-job tax credits for up to seven years.
Adopted New Rules: N.J.A.C. 19:31-22
The NJEDA has adopted the following new rules to implement the provisions of the New Jersey Economic Recovery Act of 2020, establishing the Emerge Program Act, sections 68 through 81 of P.L. 2020, c. 156.
ARE YOU INTERESTED IN LEARNING MORE ABOUT THE EMERGE PROGRAM?
If you are a potential applicant that would like to learn more about the Emerge Program? Please complete this expression of interest form and we will have a member of our team reach out to you.