For many New Jersey residents, especially those on the northern end of the state, commuting to New York for work is a way of life.
However, for those in South Jersey who also make the trek into Manhattan, Gov. Phil Murphy is hoping to convince New York firms to open offices in the Garden State to relieve them of the dreaded commute and new $9 congestion pricing toll.
The pilot program called NJ RISE, which stands for New Jersey Re-Assigning In-State Employees, launched last year and has local politicians in Camden County hoping it helps their residents similar to their northern brethren.
“We’d welcome the Big Apple firms to locate in Cherry Hill,” said Cherry Hill Mayor Dave Fleisher in a statement to The Sun Papers. “As their employees who live in the Township already know, you couldn’t pick a better place.”
Camden County Commissioner Director Louis Cappelli, Jr., called NJ RISE “a common-sense incentive” that will create a business-friendly climate for out-of-state firms. Last year, the New Jersey Legislature appropriated $20 million per fiscal year through 2028 for the program.
“I want to applaud the Governor for putting together a common sense incentive for New Jersey residents to stay in the Garden State instead of commuting to New York,” Cappelli said in an email.
“The initiative both saves the resident time, cost and the hassle of going to the Big Apple, but it makes them more productive and keeps tax dollars right here in South Jersey and hopefully Camden County.
“Gov. Murphy has been at the forefront of finding creative solutions to making New Jersey a more competitive business environment and the NJ RISE program is another sterling example of that and of public policy working on behalf of our residents,” added Cappelli.
NJ RISE offers up to, and not to exceed, $500,000 in grant money to a New York or other out-of-state firm that allows its employees from New Jersey to skip the commute and work from home or a satellite office—provided the company meets certain criteria.
To qualify for an NJ RISE grant, the business must:
- Have 25 or more U.S. full-time employees.
- Be principally located in another state.
- Be in substantial good standing with the New Jersey Department of Labor and Workforce Development (LWD) and the New Jersey Department of Environmental Protection (DEP).
- Have re-assigned employees that are full-time and part-time employees, which includes employees leased through a New Jersey Department of Labor (NJDOL) approved professional employment organization, that are reassigned by their employers with “Convenience of The Employer Income Taxation” to work in New Jersey.
- Not have independent contractors or individuals working as consultants for it participate in NJ RISE.
The New Jersey Economic Development Authority (NJEDA) is administering NJ RISE and began accepting applications in March 2024. Eligible businesses must submit a completed application online to the NJEDA on or before July 1, 2028.
Applications will be accepted on a rolling basis until funding is exhausted, according to the agency. The application can be accessed at https://www.njeda.gov/njrise.
The New Jersey Legislature passed legislation for NJ RISE on July 21, 2023, and Gov. Murphy signed the bill into law after state funding was decreased from $35 million to $20 million per fiscal year for the program.
The Murphy Administration anticipates that the re-assignment of New Jersey residents to stay in-state will help ensure that more of their income taxes stay in New Jersey, thereby increasing state revenue from the New Jersey Gross Income Tax.
The marketing campaign for NJ RISE officially launched on Jan. 20, with billboards strategically placed near New York transit hubs. The campaign also includes taxi-top banners, social media ads, and transit posters.
The marketing campaign gained attention and significance almost immediately by virtue of its timing. Around the same time, New Jersey stepped up its legal fight against New York’s congestion pricing plan.
The dreaded commuter toll, the first of its kind in the nation, began being levied on passenger vehicles coming from New Jersey, Pennsylvania, Delaware, and other states accessing Manhattan below 60th Street during peak hours.
The $9 toll is intended to relieve traffic congestion and pollution in New York City and prompt people to use public transportation, according to its backers.
But the new toll has New Jersey in an uproar.
A week after NJ RISE launched, Gov. Murphy announced on Jan. 27 that his Administration filed new claims in its congestion pricing lawsuit against New York’s Metropolitan Transportation Authority (MTA).
The new claims contend that the Federal Highway Administration (FHWA) approved last-minute changes that New York officials made to their congestion pricing plans last year, allowing congestion pricing to begin without appropriate environmental reviews.
“The decision by the federal government and the MTA to fast-track a proposal that benefits New York’s transportation system at the expense of hardworking New Jerseyans must be reevaluated and rescinded,” Murphy said in a statement.
“The FHWA cannot continue to turn a blind eye to the significant environmental impacts that congestion pricing will have on New Jersey, favoring New York at the expense of its neighbors.”
The case remains pending, and NJ Rise’s banners and posters can be seen throughout Manhattan.
