LEGISLATIVE FISCAL ESTIMATE
ASSEMBLY, No. 4619
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: JULY 3, 2024
SUMMARY
Synopsis: Modifies certain provisions of Historic Property Reinvestment and
Brownfields Redevelopment Incentive programs.
Type of Impact: Multi-year net decrease in State revenues.
Agencies Affected: New Jersey Economic Development Authority.
Office of Legislative Services Estimate
Fiscal Impact Multi-Year Life Span of Tax Credit Awards
Net State Revenue Decrease Indeterminate
 The Office of Legislative Services (OLS) concludes that the bill will result will result in a net
loss of State revenues over a multi-year period. The bill increases the maximum tax credit
awards under the Historic Property Reinvestment Program and the Brownfields
Redevelopment Program and extends eligibility for tax credit awards under each program to
new types of projects.
 The provisions of the bill increasing the maximum amount of tax credits that may be awarded
to an individual project through either program will result in a State revenue loss to the extent
that the developers of qualified properties and redevelopment projects qualify for larger tax
credit awards than permitted under current law.
 By requiring a business to demonstrate that a project financing gap exists only for projects
located outside of a government-restricted municipality with rehabilitation or remediation cost
of $5 million, the bill will result in a State revenue loss because certain projects may qualify
for tax credits for which they are not eligible under current law.
 The provisions of the bill allowing the Economic Development Authority to award tax credits
to facade rehabilitation projects or a for a redevelopment project erecting a solar panel array
on the site of a closed sanitary landfill will result in a State revenue loss to the extent that it
allows developers to receive tax credits for which they are not eligible under current law.
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
The bill revises various provisions of the New Jersey Economic Recovery Act of 2020
concerning the Historic Property Reinvestment Program and the Brownfields Redevelopment
Incentive Program. The Historic Property Reinvestment Program provides tax credits on a
competitive basis to support the rehabilitation of identified historic properties. The Brownfields
Redevelopment Incentive Program provides project-based tax credits to incentivize environmental
remediation, abatement, and demolition activities that will allow for the redevelopment of
brownfield sits for commercial, retail, or mixed use. Both of these programs are administered by
the Economic Development Authority.
The bill increases the maximum tax credit award for projects eligible for tax credit awards
under both programs, regardless of where the project is located. The bill also allows the authority
to award tax credits to facade rehabilitation projects and for a redevelopment projects involving
the erection of a solar panel array on the site of a closed sanitary landfill.
The bill amends the project financing gap requirements for both programs. Current law
requires applicants to demonstrate that a project financing gap exists for all projects, without regard
to where that project is located. The bill amends current law governing both programs to provide
that a business must demonstrate a project financing gap only for projects located outside of a
government-restricted municipality that have total rehabilitation costs, total facade rehabilitation
costs, or total remediation costs of at least $5 million.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS concludes that the bill will result will result in a net loss of State revenues over a
multi-year period. The OLS notes that the any revenue loss will be: a) temporally limited because
current law places restrictions on the time period during which the authority may award tax credits
through each program and b) spread out over several years since unused tax credits awarded under
the Historic Property Reinvestment Program may be carried forward for up to nine privilege
periods following the privilege period in which the credit was first allowed. Current law does not
allow for the carry forward of unused tax credits awarded under the Brownfields Redevelopment
Incentive Program.
The provisions of the bill increasing the maximum amount of tax credits that may be awarded
to an individual project through either program will result in a State revenue loss to the extent that
the developers of qualified properties and redevelopment projects qualify for larger tax credit
awards permitted under current law.
By revising the tax credit eligibility requirement for a business to demonstrate a project
financing gap so that it applies only to projects located outside of a government-restricted
municipality that have total rehabilitation costs, total façade rehabilitation costs, or total
remediation costs of at least $5 million, the bill will result in a State revenue loss to the extent that
these modifications allow developers to receive tax credits for which they may not be eligible
under current law.
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The provision of the bill allowing the Economic Development Authority to award tax credits
to facade rehabilitation projects or a for a redevelopment project erecting a solar panel array on
the site of a closed sanitary landfill will result in a State revenue loss to the extent that it allows
developers to receive tax credits for which they are not eligible under current law.
Current law provides the total amount of tax credits awarded annually through the Historic
Property Reinvestment Program and the Brownfields Redevelopment Incentive Program at $50
million each during the first six years of the nine-year period following enactment of the New
Jersey Economic Recovery Act of 2020. Although the bill increases the maximum amount of tax
credits that may be awarded to eligible projects and the types of projects that may qualify for tax
credit awards, the bill does not alter the current statutory tax credit cap for each program.
Section: Revenue, Finance, and Appropriations
Analyst: Scott A. Brodsky
Staff Fiscal & Budget 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-271, 34:1B-272, 34:1B-274, 34:1B-275, 34:1B-278, 34:1B-280, 34:1B-281, 34:1B-282, 34:1B-284, 34:1B-287
Advance Law: 34:1B-271, 34:1B-272, 34:1B-274, 34:1B-275, 34:1B-278, 34:1B-280, 34:1B-281, 34:1B-282, 34:1B-284, 34:1B-287
Pamphlet Law: 34:1B-271, 34:1B-272, 34:1B-274, 34:1B-275, 34:1B-278, 34:1B-280, 34:1B-281, 34:1B-282, 34:1B-284, 34:1B-287