The New Jersey Economic Development Authority (NJEDA) has initiated a marketing campaign aimed at incentivizing New York-based companies to establish offices in New Jersey or allow their employees who reside in New Jersey to work from home. The initiative, known as the New Jersey Re-assigning In-State Employees Program (NJ RISE), offers grants to businesses that reassign New Jersey residents working out of state, such as in New York, to locations within New Jersey. This effort is intended to reduce commuting time for employees and ensure that tax revenues remain within the state.
Governor Phil Murphy expressed his commitment to combating congestion pricing imposed by New York, stating, "From the beginning, I vowed to fight congestion pricing because New York should not balance its budget on the backs of New Jersey families." He emphasized that legislation signed in 2023 established a grant program encouraging businesses in other states like New York to reassign their employees back to New Jersey. Governor Murphy added that this would not only reduce costs and travel time for commuters but also retain tax dollars within the state.
The NJ RISE program was promoted through billboards placed at strategic locations such as the Lincoln Tunnel entrance on 39th St., West Side Highway at West 155th St., and Cross Bronx Expressway targeting vehicles heading towards I-87/Major Deegan Expressway or crossing over the George Washington Bridge into New Jersey. Additional advertising efforts include taxi top banners, digital and social media ads, and transit posters throughout Northern New Jersey and parts of New York.
Tim Sullivan, Chief Executive Officer of NJEDA, remarked on Governor Murphy's dedication to attracting more businesses to the Garden State. He stated that "the NJ RISE program will help incentivize companies to reassign their New Jersey employees back to their home state," thus increasing business activity within the state. Sullivan highlighted that NJ RISE aims not only at saving time and money for commuters but also at boosting state tax revenue and fostering economic growth.
The $20 million pilot program seeks to enhance Gross Income Tax Withholdings by encouraging eligible businesses based outside of the state to relocate their operations involving employees subject to "convenience of employer" income taxation rules back into New Jersey. Grants are available up to $500,000 per business based on these withholdings during one tax year.
