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NJ RISE PROGRAM


New Jersey Re-assigning In State Employees (NJ RISE) is a new program to incentivize businesses to re-assign New Jersey residents who are working in another state to a New Jersey location. The $35 million NJ RISE Program will provide grants to companies to relocate its New Jersey-resident employees, ensuring a residents’ income taxes stay in New Jersey, which will help increase tax revenue.


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DOLLAR AMOUNT


The value of all grants to the business under the program shall not exceeded $500,000 per EIN.



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BENEFITS


This program will help bring New Jerseyans tax dollars back to our state and fund critical priorities that will make New Jersey a stronger, fairer place to call home.


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ELIGIBILITY


Business principally located in another state that uses convenience of the employer income taxation rule such as Delaware, Nebraska, and New York.


NJ RISE’s goal is to increase New Jersey’s Gross Income Tax Withholdings by encouraging eligible businesses to re-assign their out of state New Jersey resident employees to New Jersey by issuing an incentive based upon on the employee’s withholdings. The NJ RISE Program is a pilot program that will provide grants to businesses principally located out of state that re-assign New Jersey residents currently assigned to work in a state that employs the “convenience of employer” income taxation rule to work in a New Jersey location. The grant is equal to the amount of New Jersey Gross Income Tax withholdings of the re-assigned resident employees during one tax year of the business, not to exceed $500,000 in the aggregate per business. The sum of all grants approved will not exceed $35 million per State fiscal year.

States such as Delaware, Nebraska, and New York use “convenience of employer” where an employee who resides out of state is taxed based on the employer’s assigned location. For example, if a New Jersey-resident works in a state with “convenience of employer” (State A) three days a week and from home the other two days, the employee will be taxed by State A for all five days, because the work done from home in New Jersey was at the convenience of the employer.

Applications will be accepted on a rolling basis until funding is exhausted.

  • The business has 25 or more U.S. Full-Time Employees 
  • The business must submit a completed application to the EDA on or before July 1, 2028
  • A Business Principally Located In Another State that uses convenience of the employer income taxation rule such as Delaware, Nebraska, and New York
  • Must be in substantial good standing with the New Jersey Department of Labor and Workforce Development (LWD) and the New Jersey Department of Environmental Protections (DEP)
  • Re-assigned Employees may include Full-Time and part-time Employees but not independent contractors or individuals working on a consulting basis for the business
  • A current tax clearance will need to be provided at application and maintained through disbursement to demonstrate the applicant is properly registered to do business in New Jersey and in substantial good standing with the New Jersey Division of Taxation

  • The value of all grants to the business under the program shall not exceed $500,000 by EIN
  • The grant amount is equal to the New Jersey Gross Income Tax Withholdings of Re-assigned Employees subject to the Grant Award Cap
  • The minimum number of Re-assigned Employees will be the number of Re-assigned Employees whose Withholdings add up to at least one half of the Grant Award Cap


Application Fee: $5,000

Administrative Fee: $1,000

Administrative fee will be charged for routine updates to customer files such as company name changes and redesignations as a result of an internal reorganization and for extensions.  Modifications that will not be accepted include mergers, acquisitions, spin-offs, separations, and divestitures. 

* All fees are non-refundable, unless funds are not available to support the application request.

  • A business may submit multiple applications, including within one tax year. Each application must be for Resident Employees not included in any other active incentive.
  • To demonstrate that the proposed Re-assigned Employees are Resident Employees that are currently assigned to a location in a State with Convenience of The Employer Income Taxation and will be Re-assigned Employees, which shall include but not be limited to:
    • Payroll report(s) from the business
    • Documents demonstrating viability of each Re-assigned Employee’s work location in New Jersey
    • Proof of the business’s Withholdings from the prior quarter to confirm that each proposed Re-assigned Employee is assigned to a location outside of New Jersey in a State with Convenience of the Employer Income Taxation, e.g. document equivalent to New Jersey’s WR-30.  If hired during that quarter, documentation to demonstrate bona fide assignment.
    • W-3 for the relevant fiscal year.
  • After the completion of the tax year selected by the business for the grant, the business must submit a CPA Certification within 120 days after the completion of the tax year.  Upon staff’s satisfactory review and acceptance of the CPA Certification, the business will be paid 75% of the estimated Withholdings substantiated by the CPA Certification.  Staff will submit information to the Division of Taxation, which is required under Chapter 125 to certify the actual amount of Withholdings of the Re-assigned Employees. Based on that certification, NJEDA will pay the remainder of the Withholdings, not to exceed the amount of the Grant Award Cap.

PROGRAM GUIDE

BOARD MEMORANDUM PROGRAM SUMMARY instructions for obtaining tax clearance certificate Frequently asked questions (COMING SOON)


QUESTIONS

For more information or to ask a specific question please send an email to njrise@njeda.gov and a team member will reach out to you.

Please be aware that construction activities under the NJ RISE Program are subject to New Jersey Contractor Registration, prevailing wage, and affirmative action requirements. 

Projects utilizing financial assistance for construction related costs that total $2,000 or more are subject to state prevailing wage requirements. During the eligibility period, each worker shall be paid not less than the prevailing wage rate for the worker’s craft or trade, as determined by the Commissioner of the Department of Labor and Workforce Development pursuant to P.L. 1963, c. 150 (N.J.S.A. 34:11-56.25 et seq.) and P.L.2005, c. 379 (N.J.S.A. 34:11-56.58 et seq.). 

Effective April 1, 2020, contractors and subcontractors for construction contracts that require payment of prevailing wage must provide proof of registration under the Public Works Contractor Registration Act (N.J.S.A. 34:11-56.48 et seq.) The Act does not require proof of registration for such contracts that were awarded prior to April 1, 2020. Information regarding this Act can be found on the NJ Department of Labor’s Website.  For projects receiving financial assistance, any contractor or subcontractor hired for construction work and having a total company workforce of four (4) or more employees must provide documentation demonstrating their good faith efforts to employ minority and women workers in each construction trade. This effort should be consistent with the applicable county employment goals established in accordance with N.J.A.C. 17:27-7.2 and align with the affirmative action requirements outlined in N.J.A.C. 19:30-3.5.