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 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 for authorized purposes, exempting these reallocated credits from the requirements of the Economic Recovery Act.

Furthermore, the bill allows the New Jersey Housing and Mortgage Finance Agency (HMFA) to conduct auctions for the sale of up to $500 million in tax credits over a period of no more than six years, with proceeds allocated to support middle-income workforce housing and low- and moderate-income housing. It establishes guidelines for the auction process, including a limit of $100 million in tax credits sold annually and a requirement that credits be sold for at least 80% of their value. The bill also introduces new definitions related to distressed municipalities and allows purchasers of tax credits to apply them against their state tax liabilities or transfer them to other entities, with certain restrictions. Overall, the legislation aims to enhance economic recovery and support various development initiatives across New Jersey while ensuring oversight and accountability in the allocation of tax credits.

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