Developers can tap into 19 state and local revenues for private projects in more than 80% of New Jersey municipalities
By Sarah Stecker, Policy Analyst
In late 2008, a major Wall Street financial services firm let it be known it was thinking about moving its offices from New York to New Jersey. The subsequent wooing of the Depository Trust & Clearing Corporation (DTCC) lasted more than a year. New Jersey finally bested New York and closed the deal with a newly minted tax subsidy, the Economic Redevelopment and Growth (ERG) Grant Program, which pushed the total taxpayer assistance offered to DTCC to more than $100 million.1
The $14.6 million ERG grant will be financed from a portion of the corporate business taxes DTCC would otherwise be obligated to pay the state.2 The grant can be paid to the company for a term of up to 20 years. ERG is the state’s newest tax increment financing program – a form of subsidy to developers used across the country – and the focus of this paper.
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