The bill revises the Cultural Arts Incentives Program and repeals the Community-Anchored Development Program, emphasizing the role of cultural arts institutions in fostering economic development within targeted communities. It allows these institutions to utilize proceeds from the sale of State tax credits and removes the competitive application process previously required for establishing occupancy costs. The definition of "cultural arts institution" is expanded to include the National Park Service and developers with partnership agreements, while clarifying that project costs will not include expenses incurred before the application date. The eligibility criteria for tax credits have been updated to ensure significant capital investments and compliance with environmental and labor standards, alongside a requirement for partnerships with local organizations to support Work First New Jersey program recipients.

Additionally, the bill introduces a rolling application review process for tax credits, stipulating that cultural arts institutions must own or lease their facilities and maintain at least 20% equity in their projects. It establishes criteria for awarding tax credits based on community impact and job creation, while also allowing for the transfer of tax credits under specific conditions. The overall cap on tax credits awarded is set at $11.5 billion over nine years, with the bill removing references to the New Jersey Community-Anchored Development Act. The New Jersey Economic Development Authority is empowered to adopt necessary regulations for implementation, and the bill allows limited construction activities prior to application submission, streamlining the process for cultural arts projects.

Statutes affected:
Introduced: 34:1B-384, 34:1B-385, 34:1B-386, 34:1B-387, 34:1B-389, 34:1B-390, 34:1B-391, 34:1B-392, 34:1B-393, 34:1B-362, 52:18A-263, 34:1B-5.1