STATE OF NEW JERSEY PROVIDES GRANTS

THROUGH NJ INVEST PROGRAM

The New Jersey Economic Development Authority (NJEDA) is awarding $120 million in grants to businesses who add full-time employees and/or make capital investments in New Jersey.

The Program:

On December 9, 2008, Governor Corzine signed into law a bill providing grants for the creation of new jobs and/or capital investments in New Jersey. The program is administered by the NJEDA and called NJ Invest.

While details on the program have not yet been finalized, information on NJ invest available at this time is available below:

The job creation portion of the program will award a $3,000 grant for each new full time position created.

          · The new jobs must be maintained for one year.

          · The jobs must be subject to NJ withholding and the new employees must receive employer provided health benefits under a group health plan.

          · The grant will not be awarded if the business is participating in other NJ employment incentive plans.

The capital investment portion of the program will reimburse businesses up to 7% for capital investments made before January 1, 2011.

          · Investments which qualify are site preparation, construction, renovations, obtaining machinery/equipment and certain site remediation expenses. The investment must be depreciable over a minimum five-year period.

For a business to qualify for either portion of the program, it must have been in operation for a minimum of two years and employ a minimum of five people.

How You Can Benefit:

The State of New Jersey has set aside $120 million to be awarded. If your business is planning on adding additional New Jersey payroll or making additional fixed asset investments, it may qualify for some of this grant money.

How We Can Help:

Within the next week, review your business planning for the upcoming year, to determine if you can take advantage of the opportunity provided by the NJ Invest program. Let us know a good time to discuss this issue with you. If you believe you may qualify for the program, email the NJEDA at customercare@njeda.com for an application. We can assist you in determining if you qualify for this program and in completing the paperwork for the grant money.

Grant programs like NJ Invest are not often made available to the general business community. Funds will be made available on a first-come, first-served basis, so it pays to act on this now. We want to make sure all our New Jersey clients have an opportunity to apply for these grants.

Please contact Hal Margolit, Tax Manager, at 215-675-8364 or hmargolit@wm-cpa.com with questions or if you require assistance implementing this process.