Economic Development Incentives

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By Laura Crimmins

Economic development incentives have created a buzz for the state of New Jersey. Trying to increase the amount of money that comes and stays in the state, it has created UEZ, Grow NJ, New Market Tax Credits, Pilot and “smart growth” programs. Take Smart growth for example, it serves the community, the economy and the environment equally. It attempts to concentrate development into already existing communities when possible. Directing economic activity into places where infrastructure already exists, minimizes the public subsidy necessary to support these activities and reducing the cost to businesses to build facilities, transport goods, connect with suppliers, customers and access employees. There are different programs depending on the type of project. A residential project can receive tax credits up to 20% of total project costs with 10% bonus possible if the project reserves at least 10% of the units for affordable housing.