The bill amends the Historic Property Reinvestment and Brownfields Redevelopment Incentive programs in New Jersey, introducing significant changes to the definitions and eligibility criteria for tax credits related to rehabilitation projects. It expands the definition of "cost of rehabilitation" to include all structural and soft costs, while excluding costs associated with increasing building volume. New definitions for "cost of facade rehabilitation," "facade rehabilitation project," and "exterior building features" are established to clarify the scope of work eligible for incentives. The selected rehabilitation period is extended to 36 months, with a potential 60-month period for phased projects. Additionally, the tax credit structure is adjusted to increase the percentage of costs eligible for credits in certain municipalities and to establish a minimum threshold for project financing gaps.

The bill also emphasizes the requirement for businesses to pay prevailing wages during construction and extends this obligation for ten years post-rehabilitation. It allows for the inclusion of prior work in project costs, while ensuring that such work does not count towards the cost of rehabilitation. The Economic Development Authority (EDA) is tasked with administering these provisions, including the establishment of a competitive application process for facade rehabilitation projects, which may receive up to 50% of available tax credits. Furthermore, the bill updates the definition of "brownfield site" and introduces terms like "labor harmony agreement" and "project financing gap" to enhance clarity. Overall, the bill aims to streamline the tax credit process while ensuring compliance and accountability among business entities receiving these incentives.

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