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ECONOMIC TAX INCENTIVES

Interstate 78 Logistics Park is ideally positioned to benefit from a number of programs Interstate 78 Logistics Park benefits from the following economic incentives:
on a national, state, and local level which present potential Landlord and Tenant with • PILOT program grants $0.45 PSF taxes with 2% annual increases providing a
tax or operational advantages relative to competing development sites. Interested significant discount to taxes for new construction in the Lehigh Valley which
parties are encouraged to contact CBRE’s Director of Location Incentives, Susan Harte, average between $1.00 and $1.25 PSF.
for additional information.
• Grow New Jersey Assistance Plan
• Susan Harte, ESQ.,MCR • Urban Enterprise Zone Program
• CBRE | Brokerage Services | Director of Location Incentives

• T 212.984.6637 | [email protected]

REQUIREMENTS AUTHORITY/REFERENCE PRIMARY BENEFICIARY POTENTIAL BENEFITS
PAYMENT IN LIEU OF TAXES (PILOT) – MUNICIPALITY PROGRAM
Municipality must apply for real property tax Five-Year Exemption and Abatement Law Technically a direct Landlord benefit in the form Two common scenarios:
credits from state (actual requirements to qualify (N.J.S.A. 40A:21-1 et seq.) of partially or fully abated Real Estate Taxes for a
may vary based on municipality) negotiated period of time ANNUAL REDUCTION: Direct negotiation between
Long-Term Tax Exemption Law (N.J.S.A. 40A:20- Developer/Landlord and Municipality on an annual
In most cases, site must be designated as 1 et seq.) Typically savings are passed along to tenants in payment lower than projected Real Estate Taxes,
“Redevelopment Zone” the form of lower recoverable expenses supported by some calculation of other revenue
Each individual PILOT agreement is negotiated and employment benefits from the project
separately, and is ultimately sanctioned through
adoption of a local ordinance by the local BOND STRUCTURE: “Redevelopment Area
governing body (Municipality) Bond” is paid to Developer/Landlord. Developer/
Landlord pays negotiated “debt service” on those
Ordinance and financial agreement, and audits bonds in lieu of Real Estate Taxes
of the entity receiving the abatement are
reviewed by the Division of Local Government
Services (LGS) within the state’s Department of
Community Affairs (DCA)
GROW NEW JERSEY ASSISTANCE PROGRAM
Located in Qualified Incentive Area New Jersey Economic Development Authority Tenant benefit through State Corporate Business State corporate business tax credits are
Tax Credits calculated per job, per year for a period of up to
Minimum “Capital Requirement” for Industrial http://www.njeda.com/web/Aspx_pg/Templates/ 10 years for each new or retained full-time job to
New Construction Projects of $60 PSF Npic_Text.aspx?Doc_Id=1626& Potential Landlord benefit through higher be located at the qualified business facility
contractual rent driven by:
Must meet Minimum Green Standards (state Calculation will depend on tenant’s number of
regulated) • Tenant’s annual operating cost savings newly created NJ jobs (full credit) and retained
NJ jobs (half credit)
Must meet prevailing wage/affirmative action • Tenant’s immediate monetization of future
requirements on initial construction activity. credits on secondary market
Must meet minimum number of jobs (35 new or
50 retained full-time jobs)
Demonstrate that capital investment and resultant
creation of eligible positions will yield a net
positive benefit of at least 110% of the requested
tax credit URBAN ENTERPRISE ZONE PROGRAM

E x E C UT I v E S UM M A R Y 7
E x E C UT I v E S UM M A R Y