MVM ASSOCIATES

Incentives for Pennsylvania & New Jersey Companies

Tax Credit Brokers and Consultants Since 1997

The Possibilities

Consider This: There are nearly 2,000 different state

incentives and thousands of federal programs currently available to businesses in the US. Many organizations miss out on substantial

benefits that are in place specifically to support growth.

Available Incentives

Not Your Average Tax Credits

TAX CREDITS = CASH

Pennsylvania Tax Credits

Transferable/Sellable: Enterprise Zone (EZ) Keystone Innovation Zone (KIZ) Research & Development (R&D) Keystone Special Development Zone (KSDZ) Historic Preservation Tax Credits (HPI) Neighborhood Assistance Program (NAP)Non–Transferable: Job Creation Tax Credit (JCTC) Keystone Opportunity Zone (KOZ)

New Jersey Tax Credits

Transferable/Sellable: Grow New Jersey Assistance Program

(Grow NJ) Economic Redevelopment and Growth

(ERG) Technology Tax Certificate Transfer

Program (NOL)

Grant Opportunities

Training: PA Workforce and Economic Development Network

Essential skills Advanced technology

NJ Workforce Partnership Development Program Customized training Emphasis on front line workers

NJ Supplemental Workforce Fund for Basic Skills Promoting adult literacy

Other: Pennsylvania First Grant

Facilitates investment and job creation

What Can I Use the Benefits For?

Working capital for your businessPay off debtSecure investmentsHire employees

YOU DECIDE!

Research & Development Tax Credit - PA

Available to companies who incur qualified research expenses within Pennsylvania.

Program created to assist with the growth and development of technology-oriented businesses.

Not zone related – available to all for-profit entities.

Tax credit is transferable and sellable for cash.

R&D - Qualifications

Qualified research expenses (QRE) to be incurred within PA.

Minimum 2 years of QREs to apply for tax credit.QREs are defined by IRS Code and may include

wages, disposable office supplies, contract research and patent costs.

Submit application by September 15th each year, award letters announced December 15th.

Companies valued at $5M or less receive 20% tax credit versus year over year increase in spending.

Companies valued over $5M receive 10% award versus year over year increase in QREs.

Job Creation Tax Credit - PA

PA State Incentive: $1,000 per full-time employee Must be paid at least 150% of minimum wage Jobs must be created within 3 years Must create 25 new jobs or expand workforce by 20%

City of Philadelphia: $5,000 per full-time employee Must be paid at least 150% of minimum wage Jobs must be created within 5 years but only jobs created in

2015 qualify Must create 25 new jobs or expand workforce by 20%

Grow NJ Assistance Program

Key job creation incentive program in state.Available to companies that add or retain jobs in NJ

some required to add as few as 10 jobs to be eligible.Incentives vary based on the location of the jobs

within the state from $500 per job to $15,000 per job per year.

Benefit is available every year for 10 years.Company must remain in location for 1.5 times years awarded.Requires investment in capital improvements.Tax credit is transferable and sellable for cash.Sunset July 1, 2019

Grow NJ Requirements

Minimum Capital Investment Requirements $/Square Foot: Industrial – Rehabilitation Projects $20 Industrial – New Construction Projects $60 Office – Rehabilitation Projects $40 Office – New Construction $120

Minimum capital investment amounts are lowered to 2/3 in GSGZs and in eight South Jersey counties: Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Ocean, Salem

Minimum FT Employment Requirements New/Retained FT Jobs: Tech Start Ups and Manufacturing Businesses 10/25 Other Targeted Industries 25/35 All Other Businesses/Industries 35/50

Minimum employment numbers are lowered to 3/4 in GSGZs and in eight South Jersey counties:Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Ocean, Salem: 8/19

Grow NJ Preferred Locations

Garden State Growth Zones (GSGZ):Camden, Trenton, Paterson and Passaic

Distressed Municipalities:A municipality that is qualified to receive assistance

under the Municipal Urban Aid Program; is under the supervision of the Local Finance Board; identified by DCA to be facing serious fiscal distress; a SDA municipality; or a municipality boasting a

major rail station.Examples include: Pennsauken, Mount Holly, Burlington,

Jersey City

NJ Economic Redevelopment and Growth

ERG is the state’s key developer incentive program.Provides grants and bonus awards for desirable

projects.ERG authorizes a bonus of 10%, up to a maximum of

30% of total project costs; 40% for projects in a GSGZ.For Local Incentive Grants, up to a maximum of 100% ifFor municipal gov’t/redevelopment agencies.All projects are subject to a comprehensive net benefit analysis to verify that the revenues the State receives will be greater than the incentive being provided.Sunset July 1, 2019

Tech/Biotech Focused Incentives

Keystone Innovation Zone (KIZ):Available to young biotechnology or technology

focused businesses located in PA within the KIZ.Local zones are located in Philadelphia,

Montgomery and Bucks Counties (east of 202) – many others throughout state.

Tax credit is transferable and sellable for cash.

Tech/Biotech Focused Incentives

NJ Technology Business Tax Certificate Transfer Program:Benefit for unprofitable NJ based technology or

biotechnology companies with less than 225 US employees.

Apply for the ability to sell net operating losses and/or R&D tax credits to unrelated profitable corporations.

Benefit can be used for growth, research and working capital.

Tax Credit Options

Use - apply credit against state tax liability including personal income tax, corporate net income, capital stock and franchise tax.

Carry forward - use in future years versus state tax liability according to guidelines which vary according to each program.

Sell - if the tax credit is sellable/transferable, once you have deducted the state liability from the total award, the remainder can be sold for cash.

Contact an Experienced Tax Broker.

Additional Financial Benefits

Incentive awards that are monetized can be used to: Raise matching funds – MVM would secure a

contract from a credit worthy buyer that will guarantee payment of a certain amount upon the transfer of the credits. The distribution of this payment can be made to a third party.

Reduce or eliminate debt – once converted to cash the benefit can be used to pre-pay or payoff an investor note in the required timeframe.

Buyers/Sellers of Tax Credits

MVM secures individual buyers and corporations who have a large tax liability to purchase credits.

Credits are sold throughout the year at a discount.

50% - 75% of a credit can be used to satisfy a variety of liabilities as stipulated in guidelines for each program.

MVM Associates sells the majority of all PA and NJ sellable tax credits.

Benefits to Buyers of Tax Credits

Businesses Can:Reduce your total state income tax liabilityLower your effective state tax rateDiversify your investment portfolioDeliver a high rate of returnPromote the arts and film, renewable energy, historic rehabilitation, or other industries you may support

Non-Traditional Financing

Our partners provide financing options unavailable through traditional lenders. They include:

Prefinancing of tax credits Crowdfunding Tax free financing Others

Contact Us

Phone: 215-540-8463

www.mvmgrants.com