July 11 Deadline to Convert New Jersey BEIP Grants to Tax Credits

July 11 Deadline to Convert New Jersey BEIP Grants to Tax Credits

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On January 11, 2016, P.L. 2015, c. 194 was signed into law permitting the voluntary conversion of outstanding Business Employment Incentive Program (“BEIP”) grant commitments into refundable tax credits.

A business approved for a BEIP grant that chooses to pursue this opportunity has until July 11, 2016, to direct the New Jersey Economic Development Authority to convert the grant to a refundable tax credit. Credits will be made available for use beginning in fiscal year 2017.

Note that a taxpayer deciding not to make the election will receive a cash grant disbursement only if New Jersey decides to fund the BEIP going forward.

Elect to convert your BEIP grants to tax credits by filing an amendment to agreement for their corresponding tax type with the Economic Development Authority. The Division of Taxation will subsequently issue an annual certificate for the unpaid BEIP grant amounts, payable in one to several installments depending on the year the grant accrued.

The templates for the election and additional FAQ can be found here:

https://www.njeda.com/about/Public-Information/Inactive-EDA-Programs/Business-Employment-Incentive-Program-(BEIP).

Ensure that if you have New Jersey BEIP grants you wish to convert into refundable credits for 2017 that you make your election by close of business Monday, July 11, 2016.

For more information or questions, please reach out to our National Tax Services Team at [email protected].

Stephen Basiaga, JD, LLM Stephen Basiaga,
T (609) 520 1188
[email protected]

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To ensure compliance with U.S. Treasury rules, unless expressly stated otherwise, any U.S. tax advice contained in this communication is not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.

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