NJEDA introduces NJ RISE to incentivize businesses to keep New Jersey residents’ income taxes in-state

In an effort to incentivize businesses to reassign New Jersey residents who are working in another state to a New Jersey location, the New Jersey Economic Development Authority board approved the creation of a new program that will provide grants to companies to come back to the Garden State.

The $35 million New Jersey Reassigning In-State Employees, or NJ RISE, Program hopes to help firms relocate their New Jersey-resident employees and help redirect tax revenue to New Jersey by ensuring that residents’ income taxes stay in state.

“For far too long, other states have benefited off hardworking New Jerseyans, using their tax withholdings to fund budget priorities that grow other economies, and fund out-of-state priorities,” Gov. Phil Murphy said. “Through the NJ RISE program, we will be able to bring employee tax dollars back into our state, to support initiatives that make New Jersey the best place to live, work and raise a family.”

“New Jersey residents deserve to have their income taxes support projects in their communities, as opposed to funding another state’s coffers,” NJEDA CEO Tim Sullivan said. “Gov. Murphy has been committed to bringing more businesses to the Garden State, and the NJ RISE program will not only help incentivize companies to reassign their New Jersey employees back to their home state, but it will also increase economic activity and continue our efforts to grow a stronger and fairer economy.”

The NJ RISE Program is a pilot program that will provide grants to businesses principally located out of state that reassign 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 reassigned 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.

Read the full story on ROI-NJ.