This bill amends the existing tax credit framework under the "New Jersey Economic Recovery Act of 2020" and introduces the "Cultural Arts Incentives Program Act." It establishes an overall cap of $11.5 billion for tax credits awarded over a nine-year period, with $2.5 billion specifically reserved for transformative projects under the Aspire Program. The legislation outlines specific annual limitations for various programs, including the Historic Property Reinvestment Act and the Brownfields Redevelopment Incentive Program, detailing the maximum tax credits that can be awarded each year. Additionally, it reallocates uncommitted tax credits from the New Jersey Community-Anchored Development Act to the New Jersey Housing and Mortgage Finance Agency, exempting these reallocated credits from the requirements of the Economic Recovery Act, and specifies that tax credits under the Community-Anchored Development Act will not be available until January 1, 2026.

Furthermore, the bill authorizes the New Jersey Housing and Mortgage Finance Agency to conduct auctions for up to $500 million in tax credits over a six-year period, with a limit of $100 million in tax credits sold annually. The proceeds from these auctions will support the creation of middle-income workforce housing and low- and moderate-income housing, fulfilling municipalities' affordable housing obligations under the Fair Housing Act. The bill also establishes a framework for the application and transfer of tax credits, requiring purchasers to pay at least 80% of the tax credit amount when transferring credits and mandating that 10% of the proceeds from such transfers be remitted to the state’s General Fund. Overall, the legislation aims to streamline the tax credit process while promoting economic development and investment in New Jersey.

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