A Passaic City promotional bag maker received an $8.4 million tax credit on Thursday to relocate to a larger facility in Paterson to keep 30 jobs in New Jersey and create another 30 at the new location, according to state documents.
The New Jersey Economic Development Authority (EDA) approved the $8.4 million Grow New Jersey Assistance (Grow NJ) Program tax break for Passaic City-based LBU Inc. to be utilized over a 10-year period.
Each year, the firm will receive $840,000 in tax incentives, according to the state.
The company established in 1993 is a manufacturer and designer of a variety of sewn products for promotional uses including environmental totes, cosmetics, packaging bags, mesh, vinyl, and cotton backpacks.
It currently operates out of a leased facility out of Brook Avenue in Passaic City. It has to vacate the building prior to a 2018 lease expiration to allow the landlord to renovate the facility.
The firm was weighing moving operations to a larger facility to accommodate growth. It looked at a 35,330 square feet facility at 293 Marshall Street and an alternative facility in northeast Philadelphia.
The Philadelphia facility requires “considerably” less renovation and brings it closer to its existing customer base in the Philadelphia Metropolitan Area, according to the company’s application.
Without the state tax credit the firm would have taken its existing 30 jobs out of New Jersey to Pennsylvania by August 31st, 2017.
The company established in 1993 is a manufacturer and designer of a variety of sewn products for promotional use. Its website proudly advertises the products it manufactures as having been in Made in USA.
LBU was able to take advantage of the tax credit because Paterson signed onto the New Jersey Economic Opportunity Act which designates the city as a Garden State Growth Zone.