SALES AND USE TAX EXEMPTION PROGRAM

Open in new Tab SALES AND USE TAX EXEMPTION PROGRAM APPLY HERE A company with 1,000 or more employees that needs to make purchases for construction and renovation of a new business location may be eligible for a sales tax exemption certificate for purchases of and furnishings, fixtures and building materials (other than tools and supplies) for placement at the project location until the new facility is functional. AMOUNT Ability to purchase building materials without NJ’s sales tax IMPACT and furnishings, fixtures and building materials other than tools and supplies for placement at the project location until the new facility is functional ELIGIBILITY Companies with 1,000 or more employees and relocate at least 500 workers to a new or substantially rehabilitated facility. Life sciences or manufacturing companies relocating 250 or more employees may be eligible See “Eligibility Details” below This certificate allows the business to purchase building materials for the project without the imposition of the state’s sales tax. PROGRAM DETAILS ELIGIBILITY FEES MORE INFO PROGRAM DETAILS PROGRAM DETAILS A company with 1,000 or more employees that needs to make purchases for construction and renovation of a new business location may be eligible for a sales tax exemption certificate for purchases of and furnishings, fixtures and building materials (other than tools and supplies) for placement at the project location until the new facility is functional. ELIGIBILITY ELIGIBILTY An approved company can receive a sales tax exemption certificate, which applies only to property purchased for installation at the approved project site. This certificate allows the business to purchase building materials for the project without the imposition of the state’s sales tax. To be eligible, a company must meet the following requirements: A company must have 1,000 or more employees and relocate at least 500 workers to a new or substantially rehabilitated facility. Life sciences or manufacturing companies relocating 250 or more employees may be eligible. Companies must maintain the retained full-time jobs for five years. Qualifying companies must demonstrate that receiving the Sales and Use Tax Exemption benefit is a material factor in the company’s decision not to relocate outside of New Jersey, they must provide health care benefits to employees, and they or a predecessor entity must have operated in New Jersey for at least 10 years (point-of-purchase/retail facilities are excluded). Please be advised: New Jersey State law prohibits most cannabis license and certification holders from receiving or continuing to receive an economic incentive from the NJEDA. If the applicant, or any person who controls the applicant or owns or controls more than one percent of the stock of the applicant, has applied for or received a license or a certification from the New Jersey Cannabis Regulatory Commission (NJ-CRC), the applicant is ineligible for this program and should not proceed with an application. If an application is received from an applicant that meets this criteria, the application will be declined and the application fee will not be refunded. FEES FEES Application fee: $1,000 Modification fee: $750 (administrative change); $1,500 (major change) Servicing fee: Equal to 2% of sales tax exemption used in previous year with a cap of $75,000 (an annual fee – payable until newly constructed building is occupied and quarterly reports are no longer necessary) MORE INFO Division of Taxation Tax Clearance Certificate required.  Certificates may be requested through the  State of New Jersey’s Premier Business Services (PBS) portal online.