Grow NJ Assistance Program
The Grow New Jersey Assistance Program (Grow NJ) is a significant economic development incentive, providing tax credits to businesses that make a qualified capital investment while creating or retaining jobs in New Jersey. The program is administered by the New Jersey Economic Development Authority (NJEDA), and while it has been in place for over a decade, there have been important recent developments which qualifying New Jersey businesses need to be aware of.
While Grow NJ can provide substantial financial incentives, participation requires careful navigation of eligibility rules and increasingly rigorous reporting requirements. For businesses currently receiving credits or considering applying, understanding these requirements is critical.
Program Overview
Grow NJ was created under the Economic Opportunity Act of 2013 to help make New Jersey more competitive in light of tax incentives available to businesses in surrounding states. In order for a business to be eligible for these tax credits under Grow NJ, the business must commit to a qualified capital investment, either through new construction, rehabilitation, or long-term leasing of a facility. There are minimum requirements relating to both the project as well as job creation or retention. While many industries can benefit from Grow NJ, targeted industries such as manufacturing are at an even greater advantage in this program.
Tax credits are paid annually over the term of the grant agreement, which in most cases is 10 years. In other words, one-tenth of the qualifying tax incentive is received each year. Because the program is performance-based, companies must demonstrate compliance each year. This structure ensures accountability but also increases the importance of ongoing compliance planning.
Annual Compliance Changes
A recent update to the Grow NJ Assistance Program changes the annual reporting requirements for businesses. Whereas businesses could previously self-attest, they now must submit an Agreed-Upon Procedures (AUP) report prepared by an independent, NJEDA-approved CPA (Qualified CPA) each year as a part of their annual reporting due within 120 days after the tax filing period end date. For example, businesses with a tax filing period end date of December 31, 2025, must submit an AUP by April 30, 2026. The AUP engagement will include procedures such as:
- Determine eligibility for employees listed on the job log
- Calculate the average job count for eligible jobs
- Confirm the statewide job count
- Substantiate bonuses, if any
- Substantiate certifications
Failure to submit the AUP report by the deadline could result in the forfeiture of tax credits.
With the right planning and professional support, Grow NJ can remain a powerful tool – not just for growth, but for long-term strategic success.
As this deadline fast approaches, businesses need to not only prepare all the necessary files to submit to NJEDA but also find a Qualified CPA who can issue the AUP report before the deadline. At McKonly & Asbury, we have a team of Qualified CPAs who can help your business meet these annual compliance changes by performing an AUP engagement. If you are in search of a Qualified CPA to perform the AUP, or would like to talk with a member from our team, please contact Partner Brett Bauer.
About the Author
Brett joined McKonly & Asbury in 2011 and is currently a Partner in the firm’s Audit & Assurance (“A&A”) segment. He is a leader in the firm’s manufacturing and distribution practice, while also serving clients in industries… Read more
