State of New Jersey Authorizes Tax Credits for Allergan HQ Expansion
The board of the New Jersey Economic Development Authority (EDA) has approved Grow New Jersey (Grow NJ) tax credits to encourage Allergan Sales, the US subsidiary of Ireland-based Allergan, to remain in New Jersey and combine four existing company locations into a 431,495-square-foot facility in Madison, New Jersey. Advanced under the New Jersey Economic Opportunity Act (EOA), Grow NJ is the state's main job creation and retention incentive program.
The board approved Allergan for Grow NJ tax credits of up to $58.2 million over 10 years based on the expected creation of 300 new, high-paying jobs, the retention of more than 1,000 jobs at risk of leaving New Jersey for Pennsylvania, and private investment of more than $103 million. The project is expected to result in a net benefit to New Jersey of over $384 million over 20 years.
Allergan subsidiaries Watson Pharmaceuticals in Parsippany, New Jersey and Forest Laboratories in Jersey City, New Jersey have existing projects approved under the business employment incentive program. Allergan will be required to withdraw those grants to qualify for the Madison Grow NJ project, forfeiting more than $15.2 million in future payments.
More than 60% of tax credits approved to date under Grow NJ are for projects in a defined targeted industry and, of those, approximately 20% are in the technology and life-sciences sector.