New businesses opening in the City of Princeton are eligible to apply for the New Business Tax Incentive – a graduated Business and Occupation tax schedule. This incentive is offered by the Princeton City Council to encourage the growth of new business in the City.
If granted, the tax incentive provides for a complete 100% waiver of the B&O tax for the first year of operation. During the second year of operation the approved business would receive a 65% tax exemption and during the third year a 40% tax exemption.
When evaluating applications for the tax incentive, Council considers many factors. By completing the application with as much detail as possible, the applicant will increase the speed by which the application is decided. Things such as size, gross revenue, the nature of the business and other businesses owned by the applicant are taken into consideration.
It is the intent of Council that the incentive is granted to a business, person, corporation or entity only once. Additionally, a business, person or other entity that has applied for and received the B&O Tax Incentive and then moves or otherwise relocates outside the city limits of Princeton within 24 months after the most recently approved B&O Tax Incentive, shall then reimburse the City for the total amount of B&O Tax that was subject to the B&O Tax Incentive.