1. MVM ASSOCIATES Incentives for Pennsylvania & New Jersey Companies Tax Credit Brokers and Consultants Since 1997

2. The Possibilities Consider This:  There are nearly 2,000 different state incentives and thousands of federal programs currently available to businesses in the US.  Many organizations miss out on substantial benefits that are in place specifically to support growth.

3. Available Incentives

4. Not Your Average Tax Credits TAX CREDITS = CASH

5. Pennsylvania Tax Credits Transferable/Sellable:  Enterprise Zone (EZ)  Keystone Innovation Zone (KIZ)  Research & Development (R&D)  Keystone Special Development Zone (KSDZ)  Historic Preservation Tax Credits (HPI )  Neighborhood Assistance Program (NAP) Non–Transferable:  Job Creation Tax Credit (JCTC)  Keystone Opportunity Zone (KOZ)

6. New Jersey Tax Credits Transferable/Sellable:  Grow New Jersey Assistance Program (Grow NJ)  Economic Redevelopment and Growth (ERG)  Technology Tax Certificate Transfer Program (NOL)

7. Grant Opportunities Training:  PA Workforce and Economic Development Network  Essential skills  Advanced technology  NJ Workforce Partnership Development Program  Customized training  Emphasis on front line workers  NJ Supplemental Workforce Fund for Basic Skills  Promoting adult literacy Other:  Pennsylvania First Grant  Facilitates investment and job creation

8. What Can I Use the Benefits For?  Working capital for your business  Pay off debt  Secure investments  Hire employees YOU DECIDE!

9. Research & Development Tax Credit - PA  Available to companies who incur qualified research expenses within Pennsylvania.  Program created to assist with the growth and development of technology-oriented businesses.  Not zone related – available to all for-profit entities.  Tax credit is transferable and sellable for cash.

10. R&D - Qualifications  Qualified research expenses (QRE) to be incurred within PA.  Minimum 2 years of QREs to apply for tax credit.  QREs are defined by IRS Code and may include wages, disposable office supplies, contract research and patent costs.  Submit application by September 15 th each year, award letters announced December 15 th.  Companies valued at $5M or less receive 20% tax credit versus year over year increase in spending.  Companies valued over $5M receive 10% award versus year over year increase in QREs.

11. Job Creation Tax Credit - PA PA State Incentive:  $1,000 per full-time employee  Must be paid at least 150% of minimum wage  Jobs must be created within 3 years  Must create 25 new jobs or expand workforce by 20% City of Philadelphia:  $5,000 per full-time employee  Must be paid at least 150% of minimum wage  Jobs must be created within 5 years but only jobs created in 2015 qualify  Must create 25 new jobs or expand workforce by 20%

12. Grow NJ Assistance Program  Key job creation incentive program in state.  Available to companies that add or retain jobs in NJ some required to add as few as 10 jobs to be eligible.  Incentives vary based on the location of the jobs within the state from $500 per job to $15,000 per job per year.  Benefit is available every year for 10 years.  Company must remain in location for 1.5 times years awarded.  Requires investment in capital improvements.  Tax credit is transferable and sellable for cash.  Sunset July 1, 2019

13. Grow NJ Requirements Minimum Capital Investment Requirements $/Square Foot:  Industrial – Rehabilitation Projects $20  Industrial – New Construction Projects $60  Office – Rehabilitation Projects $40  Office – New Construction $120 Minimum capital investment amounts are lowered to 2/3 in GSGZs and in eight South Jersey counties: Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Ocean, Salem Minimum FT Employment Requirements New/Retained FT Jobs:  Tech Start Ups and Manufacturing Businesses 10/25  Other Targeted Industries 25/35  All Other Businesses/Industries 35/50 Minimum employment numbers are lowered to 3/4 in GSGZs and in eight South Jersey counties: Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Ocean, Salem: 8/19

14. Grow NJ Preferred Locations Garden State Growth Zones (GSGZ):  Camden, Trenton, Paterson and Passaic Distressed Municipalities:  A municipality that is qualified to receive assistance under the Municipal Urban Aid Program; is under the supervision of the Local Finance Board; identified by DCA to be facing serious fiscal distress; a SDA municipality; or a municipality boasting a major rail station.  Examples include: Pennsauken, Mount Holly, Burlington, Jersey City

15. NJ Economic Redevelopment and Growth  ERG is the state’s key developer incentive program.  Provides grants and bonus awards for desirable projects.  ERG authorizes a bonus of 10%, up to a maximum of 30% of total project costs; 40% for projects in a GSGZ.  For Local Incentive Grants, up to a maximum of 100% if  For municipal gov’t/redevelopment agencies.  All projects are subject to a comprehensive net benefit analysis to verify that the revenues the State receives will be greater than the incentive being provided.  Sunset July 1, 2019

16. Tech/Biotech Focused Incentives Keystone Innovation Zone (KIZ):  Available to young biotechnology or technology focused businesses located in PA within the KIZ.  Local zones are located in Philadelphia, Montgomery and Bucks Counties (east of 202) – many others throughout state.  Tax credit is transferable and sellable for cash.

17. Tech/Biotech Focused Incentives NJ Technology Business Tax Certificate Transfer Program:  Benefit for unprofitable NJ based technology or biotechnology companies with less than 225 US employees.  Apply for the ability to sell net operating losses and/or R&D tax credits to unrelated profitable corporations.  Benefit can be used for growth, research and working capital.

18. Tax Credit Options  Use - apply credit against state tax liability including personal income tax, corporate net income, capital stock and franchise tax.  Carry forward - use in future years versus state tax liability according to guidelines which vary according to each program.  Sell - if the tax credit is sellable/transferable, once you have deducted the state liability from the total award, the remainder can be sold for cash. Contact an Experienced Tax Broker.

19. Additional Financial Benefits  Incentive awards that are monetized can be used to:  Raise matching funds – MVM would secure a contract from a credit worthy buyer that will guarantee payment of a certain amount upon the transfer of the credits. The distribution of this payment can be made to a third party.  Reduce or eliminate debt – once converted to cash the benefit can be used to pre-pay or payoff an investor note in the required timeframe.

20. Buyers/Sellers of Tax Credits  MVM secures individual buyers and corporations who have a large tax liability to purchase credits.  Credits are sold throughout the year at a discount.  50% - 75% of a credit can be used to satisfy a variety of liabilities as stipulated in guidelines for each program.  MVM Associates sells the majority of all PA and NJ sellable tax credits.

21. Benefits to Buyers of Tax Credits Businesses Can:  Reduce your total state income tax liability  Lower your effective state tax rate  Diversify your investment portfolio  Deliver a high rate of return  Promote the arts and film, renewable energy, historic rehabilitation, or other industries you may support

22. Non-Traditional Financing  Our partners provide financing options unavailable through traditional lenders. They include:  Prefinancing of tax credits  Crowdfunding  Tax free financing  Others

23. Contact Us Phone: 215-540-8463 www.mvmgrants.com