Governor Phil Murphy announces his tax incentives program at 1776, a co-working space, in Cherry Hill, NJ.

CHERRY HILL, NJ—As the controversy surrounding the Garden State's corporate economic incentive program grows each day, New Jersey Gov. Phil Murphy has released a new plan that calls for a suite of transparent, targeted capped incentives to replace the Grow NJ incentive program.

In a speech on Wednesday at the incubator 1776 here, the governor issued a sweeping proposal to replace the Grow NJ program that is set to expire on June 30. The governor noted that his new plan builds on his economic master plan he proposed in October and would create an economic incentive program worth $400 million annually.

“Building communities requires some sort of incentives program—but it must be one that is predictable and sustainable, transparent and accountable, and smartly devised and strategically deployed,” said Gov. Murphy in his address. “What this is about is making sure we have policies in place that don't just allow some to do well, but which allow entire communities to do well. Our proposed incentives meet this test. Our current program failed this test.”

Allegations over preferential treatment have led to litigation, a reported probe into the program by the New Jersey Attorney General and the formation of a task force by the governor. Recently, a report in Politico indicated the New Jersey Economic Development Authority recently received a subpoena from a state grand jury in regards to the state's incentive program.

Included in the suite of incentives are significant assurances that the program will create good jobs not just at the businesses who receive an award, but also for the working men and women of New Jersey, the governor related.

The governor's new proposal features five programs included in the plan:

NJ Forward—A jobs-based program will provide credits to companies engaged in high-growth industries, U.S. businesses creating a Northeast headquarters, foreign businesses creating a U.S.  headquarters, and major job retention projects.

NJ Aspire—This program will catalyze investments in commercial, residential, and mixed-use projects through a place-based gap financing program.

Brownfields Redevelopment Program—This program will pair with EDA's Brownfields Loan Program to catalyze more remediation projects and increase job creation.

Historic Preservation Tax Credit Program—A program, modeled after the National Historic Tax Credit program, would partially reimburse developers who revitalize income-producing historic buildings.

Innovation Evergreen Fund—This fund, which was described by the governor as the lynchpin of his proposed incentive program, would be designed to “supercharge” venture capital investment into Garden State startups.

“New Jersey was long known as the home for innovation and the role of tech companies that were founded here is legendary,” said EDA Board Chairman Kevin Quinn. “But over the past decade, the new legends of technology have chosen to grow elsewhere. The plan outlined by the Governor presents a great opportunity for New Jersey to restore its heritage at the top of the global innovation economy.”