Economic Development Authority approves tax credits to encourage Allergan subsidiary to remain in NJ

The board of the New Jersey Economic Development Authority announced it has approved Grow New Jersey tax credits to encourage Allergan Sales, LLC, to remain in New Jersey and to combine four existing company locations into a facility in Madison, New Jersey.

Allergan Sales, LLC, is a subsidiary of Allergan, plc, which is based in Ireland. The board approved Grow New Jersey (Grow NJ) tax credits of up to $58.2 million over 10 years for Allergan Sales, based on an expected creation of 300 new jobs, and the retention of more than 1,000 jobs at risk of leaving the state for another state, as well as private investment of more than $103 million, according to a press release.

A net benefit of more than $384 million over 20 years is expected for the state as a result of the project, the release reported.

“Allergan is a significant employer in New Jersey and its presence adds to the state’s leadership in the pharmaceutical sector,” Melissa Orsen, EDA chief executive officer, stated in the release. “Encouraging investment and growth in targeted industries, including life sciences, is one of the primary objectives of the Grow NJ program.”

Watson Pharmaceuticals, in Parsippany, and Forest Laboratories, in Jersey City, are Allergan subsidiaries with existing projects approved under the Business Employment Incentive Program, with grants that will be required to be withdrawn in order for Allergan to qualify for the Grow NJ project in Madison, according to the release. This will forfeit more than $15.2 million in future payments, the release reported.

Reference: www.njeda.com