The Board of the New Jersey Economic Development Authority (EDA) has approved Grow New Jersey (Grow NJ) tax credits to encourage the global pharmaceutical company Allergan, the U.S. 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.
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 the State for Pennsylvania, and private investment of more than $103 million. The project is expected to result in a net benefit to the State of more than $384 million over 20 years.
As a performance-based program, approved Grow NJ projects must first generate new tax revenue, complete capital investments and hire or retain employees to receive approved benefits. The company has certified, as required by legislation, that the approval of tax credits is a material factor in its decision to advance the project in New Jersey.
Allergan subsidiaries Watson Pharmaceuticals, in Parsippany, and Forest Laboratories, in Jersey City, have existing projects approved under the Business Employment Incentive Program. Those grants will be required to be withdrawn in order for Allergan to qualify for the Madison Grow NJ project, forfeiting more than $15.2 million in future payments.