Tax Tip #178

The New Jersey Small Business Improvement Grant provides reimbursement for costs associated with making building capital improvements or purchasing new furniture, fixtures, and equipment (FFE). Eligible businesses may receive reimbursements of up to 50% of total project costs incurred up to $50,000. Landlords and home-based businesses are not eligible. 

To be eligible, applicants must:

• Rent or own and operate from facility
• Meet the Small Business Administration’s definition of a Small Business (fewer than 500 employees) 
• Provide a current tax clearance certificate prior to approval
• Be in good standing with NJ Department of Labor and Department of Environmental Protection
• Certify at time of application that they are not in default of any other EDA or state assistance
• Certify at time of application that they are willing to pay wages that are the greater of $15/hour or 120% of minimum wage rate
• Remain in the location for at least 2 years for grants up to $25K, or at least 4 years for grant awards beyond that amount.

Improvement projects must meet the following eligibility requirements:

• Interior or exterior building improvements or purchase and/or installation of FFE
• Total project cost must be at least $5K 
• Work must have been completed on or after March 9, 2020, and within the 2 years prior to the application date. Example, for an application submitted 12/20/2023, the project must have been completed between 12/21/2021 and 12/20/2023
• Projects with total costs over $50K are subject to Green Building Standards for lighting and/or mechanical work
• Projects utilizing contractors with 4 or more employees may be subject to Affirmative Action requirements 

An approval fee of $100 also applies.

If you have questions or would like assistance, please reach out to a team member.