This bill amends existing tax credit laws in New Jersey to establish a comprehensive framework for the allocation and purchase of tax credits across various economic development programs. It sets an overall cap of $11.5 billion on tax credits awarded over a nine-year period, with $2.5 billion specifically reserved for transformative projects under the "New Jersey Aspire Program." The legislation introduces annual limits on the total value of tax credits for different programs, including the "Brownfields Redevelopment Incentive Program Act" and the "Emerge Program Act," while allowing for the transfer of uncommitted credits to support qualified offshore wind projects and film production companies. Additionally, it specifies that the Director of the Division of Taxation shall not pay more than 75 percent of the credit amount for most programs, with exceptions for certain acts where up to 85 percent may be paid under specific conditions.

Furthermore, the bill authorizes the New Jersey Housing and Mortgage Finance Agency (HMFA) to conduct auctions for up to $500 million in tax credits over a six-year period, aimed at creating middle-income workforce housing and low- and moderate-income housing. The proceeds from these auctions will be equally divided to fulfill municipalities' affordable housing obligations under the Fair Housing Act, with a focus on developments in distressed older suburban municipalities. The bill also outlines the application and award processes for qualified projects, mandates that 10% of the proceeds from tax credit transfer certificates be remitted to the state’s General Fund, and ensures that tax credits are allocated equitably across northern and southern counties in New Jersey. Overall, the legislation seeks to enhance housing affordability and streamline the allocation of tax credits to support impactful projects in the state.

Statutes affected:
Introduced: 34:1B-362
Advance Law: 34:1B-362, 52:18A-263
Pamphlet Law: 52:18A-263, 34:1B-362