LEGISLATIVE FISCAL ESTIMATE
[First Reprint]
SENATE, No. 4023
STATE OF NEW JERSEY
220th LEGISLATURE
DATED: JULY 5, 2023
SUMMARY
Synopsis: Revises various provisions of “New Jersey Economic Recovery Act of
2020,” including revisions to New Jersey Aspire Program.
Type of Impact: Increase in State expenditures; two-year extension of tax credit
programs, but no additional State revenue loss.
Agencies Affected: New Jersey Economic Development Authority.
Office of Legislative Services Estimate
Fiscal Impact Through March 1, 2029
State Expenditure Increase Indeterminate
Two-year extension of tax credit programs, but no
State Revenue Impact additional State revenue loss
 The Office of Legislative Services (OLS) determines that this bill will result in some
indeterminate expenditure increases for the New Jersey Economic Development Authority
associated with the administrative costs of implementing certain changes to the New Jersey
Aspire Program and the extension of various economic development programs established
under the New Jersey Economic Recovery Act of 2020.
 The bill does not increase the total value of tax credits authorized under the Economic
Recovery Act, which is capped at $11.5 billion, or the total value of tax credits that may be
annually awarded under the Aspire and Emerge programs, which is capped annually at $1.1
billion over the first six years, not including transformative projects.
 Accordingly, the OLS concludes that the bill would not result in State revenue reductions.
Instead, the two-year extension of these economic development programs is expected to
prolong the period in which the State may experience revenue losses due to the claiming of tax
credits otherwise authorized under the Economic Recovery Act.
Office of Legislative Services Legislative Budget and Finance Office
State House Annex Phone (609) 847-3105
P.O. Box 068 Fax (609) 777-2442
Trenton, New Jersey 08625 www.njleg.state.nj.us
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BILL DESCRIPTION
This bill provides various changes to the New Jersey Aspire Program, which is administered
by the New Jersey Economic Development Authority and was enacted as part of the New Jersey
Economic Recovery Act of 2020.
Under the Aspire Program, the authority awards tax credits to the developers of certain
redevelopment projects that would be economically infeasible without such subsidies and that
meet certain other requirements. In turn, these developers are required to comply with certain
requirements concerning the development of these projects, including, but not limited to, the
dedication of affordable housing in new residential projects. Under current law, the total tax
credits awarded for any redevelopment project may not exceed certain statutory limitations.
However, the authority may provide larger tax credit awards for “transformative projects,” which
meet certain eligibility criteria and are also subject to statutory limitations on tax credit awards.
The bill revises other provisions of the New Jersey Economic Recovery Act of 2020, including
extending the period in which other economic development programs, such as the Emerge
Program, would continue to operate and authorizes the transfer of certain tax credits otherwise
available for the Aspire Program and Emerge Program.
The Senate Budget and Appropriations Committee statement to this bill from June 27, 2023
includes a more detailed discussion of the provisions of the proposed legislation.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS determines that this bill will result in some indeterminate expenditure increases for
the authority associated with the administrative costs of implementing certain changes to the
Aspire Program and the extension of various economic development programs established under
the New Jersey Economic Recovery Act of 2020.
Current law authorizes the issuance of up to $11.5 billion in tax credits over seven years for
various economic development programs established under the Economic Recovery Act.
Additionally, under current law, the total value of tax credits to be awarded under the Aspire
Program and Emerge Program, not including transformative projects, may not exceed $1.1 billion
annually for the first six years of the programs, subject to certain carry-forward authorizations.
The total value of tax credits to be awarded annually for transformative projects under the Aspire
program may not exceed an aggregate balance of $2.5 billion.
This bill increases the duration period of the economic development programs established
under the Economic Recovery Act from seven years to nine years and allows the transfer of certain
unused credits from the Aspire Program and Emerge Program for transformative projects under
the Aspire Program.
Additionally, the bill provides for numerous changes to the Aspire Program, including
increasing the amount of tax credits that may be awarded to redevelopment projects and
transformative projects, requiring the authority to establish new affordability controls for
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residential redevelopment projects, and revising certain other requirements and conditions for the
receipt of tax credits under the Aspire Program.
As a result, the OLS anticipates that the authority will incur some increases in administrative
expenses associated with the implementation of certain changes to the Aspire Program, including
the development of new affordability controls, and the review and approval of applications for
various economic development programs during the two-year extension period.
The bill does not increase the total value of tax credits authorized under the Economic
Recovery Act, which is capped at $11.5 billion, or the total value of tax credits that may be
annually awarded under the Aspire and Emerge programs, which is capped annually at $1.1 billion
over the first six years of the program, not including transformative projects. Accordingly, the
OLS concludes that the bill would not result in State revenue reductions associated with the
issuance of tax credits through the various economic development programs established under the
Economic Recovery Act, including the Aspire Program. Instead, the two-year extension of these
economic development programs is expected to prolong the period in which the State may
experience revenue losses due to the claiming of tax credits otherwise authorized under the
Economic Recovery Act.
Section: Authorities, Utilities, Transportation and Communications
Analyst: Michael D. Walker
Assistant Fiscal Analyst
Approved: Thomas Koenig
Legislative Budget and Finance Officer
This legislative fiscal estimate has been produced by the Office of Legislative Services due to the
failure of the Executive Branch to respond to our request for a fiscal note.
This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).


Statutes affected:
Introduced: 34:1B-323, 34:1B-324, 34:1B-325, 34:1B-326, 34:1B-327, 34:1B-328, 34:1B-329, 34:1B-333, 34:1B-335, 34:1B-339, 34:1B-362
Advance Law: 34:1B-323, 34:1B-324, 34:1B-325, 34:1B-326, 34:1B-327, 34:1B-328, 34:1B-329, 34:1B-331, 34:1B-334
Pamphlet Law: 34:1B-323, 34:1B-324, 34:1B-325, 34:1B-326, 34:1B-327, 34:1B-328, 34:1B-329, 34:1B-331, 34:1B-333, 34:1B-334, 34:1B-335, 34:1B-339, 34:1B-362