NJ Awards EisnerAmper Grant to Create Jobs
by Terri Eyden on
By Anne Rosivach
Companies in New Jersey that are interested in applying for the state's business tax incentives and grants may want to consult EisnerAmper, a New York‒based accounting firm that maintains four locations in New Jersey.
EisnerAmper has received a $1.826 million Business Employment Incentive Program (BEIP) grant from New Jersey to create 100 new jobs over a two-year period. The firm was also awarded $1.147 million in tax credits through a Business Retention and Relocation Assistance Grant (BRRAG) as an incentive for the firm to remain in in the state and retain the 255 employees now working in its Edison office.
EisnerAmper will move from Edison to nearby Metropark, considered a distressed urban site.
The BEIP grant can equal 100 percent of the expected state tax revenue that will be generated from the new jobs. BRRAG offers grants as credits against business tax liability.
To qualify for the employment incentive grant, a business must demonstrate (1) that the BEIP grant is a "material" factor for expanding or relocating jobs in New Jersey; (2) that it is financially viable; and (3) that it will create a minimum of twenty-five new jobs, or ten new jobs if the business is within the high-tech or biotechnology industries.
New Jersey has actively sought to retain businesses of all sizes in the state with business incentive programs. Another recent recipient is the national retailer Burlington Coat Factory. The company had considered a move to Pennsylvania but has accepted a $41 million tax credit package from the New Jersey Economic Development Authority that will tie the company to the state for at least another fifteen years.
Business incentives are popular with the state legislature, which has shown a willingness to enact frequent changes. New Jersey increased the allowable amount per employee for tax credits in 2010 from 80 to 100 percent for the BRRAG program, and in January, the state enacted a new and different incentive program ‒ Grow New Jersey Assistance Program. Honeywell International, a large technology company headquartered in Morris County, New Jersey, has applied for the new program, which will potentially result in a larger benefit than the BRRAG program, according to NorthJersey.com. The BRRAG program has a $40 million cap.
The leases on EisnerAmper's four New Jersey locations will be up within two years, which means that, according to a report in the Woodbridge Patch, "they would be considering whether to consolidate their New Jersey offices into a larger, renovated facility in Metropark, or move out of state, depending upon what the state could do for them financially." In its application, EisnerAmper estimated that keeping the company in the state would result in a net benefit of $48.7 million to New Jersey. The cost to move from their current location in Edison to Metropark, a distance of five miles, was estimated at $8.685 million.
You may like these other stories...
As anyone who's ever been through a divorce can attest, the pain of parting with your spouse isn't just emotional—the fallout from divorce can wreak financial havoc as well long after the dust in the courtroom...
Event Date: October 21, 2014, 2 pm ETKristen Rampe will share how to speak and write more effectively by understanding your own and your audience’s communication style. When two people have very different communication...
Many accountants struggle with payroll, either because they have too much of it or they don't want to do any of it. Either way, they are at odds with the needs of their business clients. Most clients are looking for a...
Upcoming CPE Webinars
In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards. A dashboard condenses large amounts of data into a compact space, yet enables the end user to easily drill down into details when warranted.
This webcast will include discussions of important issues in SSARS No. 19 and the current status of proposed changes by the Accounting and Review Services Committee in these statements.
Kristen Rampe will share how to speak and write more effectively by understanding your own and your audience's communication style.
Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.