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A4525
ASSEMBLY, No. 4525
STATE OF NEW JERSEY
222nd LEGISLATURE
�
INTRODUCED MARCH 9, 2026
Sponsored by:
Assemblyman� KENYATTA STEWART
District 35 (Bergen and Passaic)
Assemblyman� AL ABDELAZIZ
District 35 (Bergen and Passaic)
Senator� BENJIE E. WIMBERLY
District 35 (Bergen and Passaic)
SYNOPSIS
���� Extends deadline for submission of temporary
certificate of occupancy for certain qualified residential projects or
mixed-use parking projects under Economic Redevelopment and Growth Grant
program to June 30, 2032.
CURRENT VERSION OF TEXT
���� As introduced.
��
An Act
concerning the Economic Redevelopment and Growth Grant
program and amending P.L.2009, c.90 and P.L.2022, c.75.
����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:
���� 1.��� Section 6 of P.L.2009,
c.90 (C.52:27D-489f) is amended to read as follows:
���� 6. a. Up to the limits
established in subsection b. of this section and in accordance with a
redevelopment incentive grant agreement, beginning upon the receipt of
occupancy permits for any portion of the redevelopment project, or upon any
other event evidencing project completion as set forth in the incentive grant
agreement, the State Treasurer shall pay to the developer incremental State
revenues directly realized from businesses operating at the site of the
redevelopment project from the following taxes: the Corporation Business Tax
Act (1945), P.L.1945, c.162 (C.54:10A-1 et seq.), the tax imposed on marine
insurance companies pursuant to R.S.54:16-1 et seq., the tax imposed on
insurers generally, pursuant to P.L.1945, c.132 (C.54:18A-1 et seq.), the public
utility franchise tax, public utilities gross receipts tax and public utility
excise tax imposed on sewerage and water corporations pursuant to P.L.1940, c.5
(C.54:30A-49 et seq.), those tariffs and charges imposed by electric, natural
gas, telecommunications, water and sewage utilities, and cable television
companies under the jurisdiction of the New Jersey Board of Public Utilities,
or comparable entity, except for those tariffs, fees, or taxes related to
societal benefits charges assessed pursuant to section 12 of P.L.1999, c.23
(C.48:3-60), any charges paid for compliance with the "Global Warming
Response Act," P.L.2007, c.112 (C.26:2C-37 et seq.), transitional energy
facility assessment unit taxes paid pursuant to section 67 of P.L.1997, c.162
(C.48:2-21.34), and the sales and use taxes on public utility and cable
television services and commodities, the tax derived from net profits from
business, a distributive share of partnership income, or a pro rata share of S
corporation income under the "New Jersey Gross Income Tax Act,"
N.J.S.54A:1-1 et seq., the tax derived from a business at the site of a
redevelopment project that is required to collect the tax pursuant to the
"Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.), the tax
imposed pursuant to P.L.1966, c.30 (C.54:32B-1 et seq.) from the purchase of
furniture, fixtures and equipment, or materials for the remediation, the
construction of new structures at the site of a redevelopment project, the
hotel and motel occupancy fee imposed pursuant to section 1 of P.L.2003, c.114
(C.54:32D-1), or the portion of the fee imposed pursuant to section 3 of
P.L.1968, c.49 (C.46:15-7) derived from the sale of real property at the site
of the redevelopment project and paid to the State Treasurer for use by the
State, that is not credited to the "Shore Protection Fund" or the
"Neighborhood Preservation Nonlapsing Revolving Fund" ("New
Jersey Affordable Housing Trust Fund") pursuant to section 4 of P.L.1968,
c.49 (C.46:15-8).� Any developer shall be allowed to assign their ability to
apply for the tax credit under this subsection to a non-profit organization
with a mission dedicated to attracting investment and completing development
and redevelopment projects in a Garden State Growth Zone.� The non-profit
organization may make an application on behalf of a developer which meets the
requirements for the tax credit, or a group of non-qualifying developers, such
that these will be considered a unified project for the purposes of the
incentives provided under this section.
���� b.��� (1) (a) Up to an average
of 75 percent of the projected annual incremental revenues or 85 percent of the
projected annual incremental revenues in a Garden State Growth Zone may be
pledged towards the State portion of an incentive grant.
���� (b)� State incentive grants
not to exceed an aggregate total value of $75,000,000 shall be made available
by the authority for applications submitted after the effective date of
P.L.2020, c.156, but prior to December 31, 2021, for projects that are
predominantly commercial and contain 100,000 or more square feet of office and
retail space, or industrial space for purchase or lease, and may include a
parking component.� The developer of a project seeking an award of credits for
a project restricted under this subparagraph shall submit an incentive grant
application prior to December 31, 2021, and if approved after the effective
date of P.L.2020, c.156, shall submit a temporary certificate of occupancy for
the project no later than December 31, 2024.� In addition to the requirements
for an incentive award set forth in P.L.2009, c.90 (C.52:27D-489a et al.), a
developer shall be eligible to receive an award of credits for a project
restricted under this subparagraph only if the developer demonstrates to the
authority at that time of application that: (i) the project shall comply with
minimum environmental and sustainability standards; (ii) the project shall
comply with the authority's affirmative action requirements, adopted pursuant
to section 4 of P.L.1979, c.303 (C.34:1B-5.4); (iii) each worker employed by
the developer, or subcontractor of a developer working at the project, shall be
paid not less than $15 per hour or 120 percent of the minimum wage fixed under
subsection a. of section 5 of P.L.1966, c.113 (C.34:11-56a4), whichever is
higher; and (iv) during the eligibility period, each worker employed to perform
construction work or building services work at the project shall be paid not
less than the prevailing wage rate for the worker's craft or trade, as determined
by the Commissioner of Labor and Workforce Development pursuant to P.L.1963,
c.150 (C.34:11-56.25 et seq.) and P.L.2005, c.379 (C.34:11-56.58 et seq.).
���� (2)� In the case of a
qualified residential project or a project involving university infrastructure,
if the authority determines that the estimated amount of incremental revenues
pledged towards the State portion of an incentive grant is inadequate to fully fund
the amount of the State portion of the incentive grant, then in lieu of an
incentive grant based on the incremental revenues, the developer shall be
awarded tax credits equal to the full amount of the incentive grant.
���� (3)� In the case of a
mixed-use parking project, if the authority determines that the estimated
amount of incremental revenues pledged towards the State portion of an
incentive grant is inadequate to fully fund the amount of the State portion of
the incentive grant, then, in lieu of an incentive grant based on the
incremental revenues, the developer shall be awarded tax credits equal to the
full amount of the incentive grant.
���� The value of all credits
approved by the authority pursuant to paragraphs (2) and (3) of this subsection
shall not exceed $993,000,000, of which:
���� (a)�� $250,000,000 shall be
restricted to qualified residential projects within Atlantic, Burlington,
Camden, Cape May, Cumberland, Gloucester, Ocean, and Salem counties, of which
$175,000,000 of the credits shall be restricted to the following categories of
projects: (i) qualified residential projects located in a Garden State Growth
Zone located within the aforementioned counties; and (ii) mixed-use parking
projects located in a Garden State Growth Zone or urban transit hub located
within the aforementioned counties; (iii) and $75,000,000 of the credits shall
be restricted to qualified residential projects in municipalities with a 2007
Municipal Revitalization Index of 400 or higher as of the date of enactment of
the "New Jersey Economic Opportunity Act of 2013," P.L.2013, c.161
(C.52:27D-489p et al.) and located within the aforementioned counties;
���� (b)� $440,000,000 shall be
restricted to the following categories of projects: (i) qualified residential
projects located in urban transit hubs that are commuter rail in nature that
otherwise do not qualify under subparagraph (a) of this paragraph; (ii) qualified
residential projects located in Garden State Growth Zones that do not qualify
under subparagraph (a) of this paragraph; (iii) mixed-use parking projects
located in urban transit hubs or Garden State Growth Zones that do not qualify
under subparagraph (a) of this paragraph, provided however, an urban transit
hub shall be allocated no more than $25,000,000 for mixed-use parking projects;
(iv) qualified residential projects which are disaster recovery projects that
otherwise do not qualify under subparagraph (a) of this paragraph; (v)
qualified residential projects in SDA municipalities located in Hudson County
that were awarded State Aid in State Fiscal Year 2013 through the Transitional
Aid to Localities program and otherwise do not qualify under subparagraph (a)
of this paragraph; (vi) $25,000,000 of credits shall be restricted to mixed-use
parking projects in Garden State Growth Zones which have a population in excess
of 125,000 and do not qualify under subparagraph (a) of this paragraph; (vii)
$40,000,000 of credits shall be restricted to qualified residential projects
that include a theater venue for the performing arts and do not qualify under
subparagraph (a) of this paragraph, which projects are located in a
municipality with a population of less than 100,000 according to the latest
federal decennial census, and within which municipality is located an urban
transit hub and a campus of a public research university, as defined in section
1 of P.L.2009, c.308 (C.18A:3B-46); and (viii) $150,000,000 of credits shall be
restricted to qualified residential projects and mixed-use parking projects in
Garden State Growth Zones having a population in excess of 125,000 and do not
qualify under subparagraph (a) of this paragraph;
���� (c)�� $87,000,000 shall be
restricted to the following categories of projects: (i) qualified residential
projects located in distressed municipalities, deep poverty pockets, highlands
development credit receiving areas or redevelopment areas, otherwise not qualifying
pursuant to subparagraph (a) or (b) of this paragraph; and (ii) mixed-use
parking projects that do not qualify under subparagraph (a) or (b) of this
paragraph, and which are used by an independent institution of higher
education, a school of medicine, a nonprofit hospital system, or any
combination thereof; provided, however, that $20,000,000 of the $87,000,000
shall be allocated to mixed-use parking projects that do not qualify under
subparagraph (a) or (b) of this paragraph;
���� (d)� (i) $16,000,000 shall be
restricted to qualified residential projects that are located within a
qualifying economic redevelopment and growth grant incentive area otherwise not
qualifying under subparagraph (a), (b), or (c) of this paragraph; and
���� (ii)� an additional
$50,000,000 shall be restricted to qualified residential projects which, as of
the effective date of P.L.2016, c.51, are located in a city of the first class
with a population in excess of 270,000, are subject to a Renewal Contract for a
Section 8 Mark-Up-To-Market Project from the United States Department of
Housing and Urban Development, and for which an application for the award of
tax credits under this subsection was submitted prior to January 1, 2016;
���� (e)�� $25,000,000 shall be
restricted to projects involving university infrastructure; and
���� (f)�� (Deleted by amendment,
P.L.2021, c.160)
���� (g)� $125,000,000 shall be
restricted to applications submitted after the effective date of P.L.2020,
c.156 (C.34:1B-269 et al.) for residential projects in any county of the State.
���� (h)� For subparagraphs (a)
through (d) of this paragraph, not more than $40,000,000 of credits shall be
awarded to any qualified residential project in a deep poverty pocket or
distressed municipality and not more than $20,000,000 of credits shall be
awarded to any other qualified residential project.� The developer of a
qualified residential project seeking an award of credits towards the funding
of its incentive grant shall submit an incentive grant application prior to
July 1, 2016 and if approved after September 18, 2013, the effective date of
P.L.2013, c.161 (C.52:27D-489p et al.) shall submit a temporary certificate of
occupancy for the project no later than December 31, 2023.� The developer of a
mixed-use parking project seeking an award of credits towards the funding of
its incentive grant pursuant to subparagraph (c) of this paragraph and if
approved after the effective date of P.L.2015, c.217, shall submit a temporary
certificate of occupancy for the project no later than December 31, 2023.� The
developer of a qualified residential project or a mixed-use parking project
seeking an award of credits toward the funding of its incentive grant for a
project restricted under categories (vi) and (viii) of subparagraph (b) of this
paragraph shall submit an incentive grant application prior to July 1, 2019 or,
in the case of a project restricted under category (viii) of subparagraph (b)
of this paragraph, December 31, 2021, and if approved after the effective date
of P.L.2017, c.59, shall submit a temporary certificate of occupancy for the
project no later than June 30,
[
2028
]
2032
,
provided that the municipality in which the project is located shall have
submitted to the chief executive officer of the authority a letter of support
identifying up to six projects prior to July 1, 2018.� The letter of support is
to contain a project scope for each of the projects and may be supplemented or
amended from time to time until July 1, 2019 or, in the case of a project
restricted under categories (vi) and (viii) of subparagraph (b) of this
paragraph, December 31, 2022.� A developer may amend the application, or assign
the application to a municipal redeveloper, for a project restricted under
categories (vi) and (viii) of subparagraph (b) of this paragraph that is
described in subparagraph (c) of paragraph (2) of subsection b. of section 3 of
P.L.2022, c.75 (C.52:27D-489i1) by excluding the visitor center, youth center,
or both from the application, provided that the project otherwise qualifies as
a mixed-use parking project, and, notwithstanding any provisions of section 3
of P.L.2022, c.75 (C.52:27D-489i1) or any law or rule to the contrary, the
maximum amount of any redevelopment incentive grant for the modified project
shall be as set forth for projects described in subparagraph (c) of paragraph
(2) of subsection b. of section 3 of P.L.2022, c.75 (C.52:27D-489i1).�
Applications for tax credits pursuant to this subsection relating to an
ancillary infrastructure project or infrastructure improvement in the public
right-of-way, or both, shall be accompanied with a letter of support relating
to the project or improvement by the governing body or agency in which the
project is located.� Credits awarded to a developer pursuant to this subsection
shall be subject to the same financial and related analysis by the authority,
the same term of the grant, and the same mechanism for administering the
credits, and shall be utilized or transferred by the developer as if the
credits had been awarded to the developer pursuant to section 35 of P.L.2009,
c.90 (C.34:1B-209.3) for qualified residential projects thereunder.� No portion
of the revenues pledged pursuant to the "New Jersey Economic Opportunity
Act of 2013," P.L.2013, c.161 (C.52:27D-489p et al.) shall be subject to
withholding or retainage for adjustment, in the event the developer or taxpayer
waives its rights to claim a refund thereof.
���� (i)�� The developer of a
project seeking an award of credits for a project restricted under subparagraph
(g) of this paragraph shall submit an incentive grant application prior to
December 31, 2021, and if approved after the effective date of P.L.2020, c.156
(C.34:1B-269 et al.), shall submit a temporary certificate of occupancy for the
project no later than December 31, 2024.� In addition to the requirements for
an award of credits set forth in P.L.2009, c.90 (C.52:27D-489a et al.), a
developer shall be eligible to receive an award of credits for a project
restricted under subparagraph (g) of this paragraph only if the developer
demonstrates to the authority at that time of application that: (i) the project
shall comply with minimum environmental and sustainability standards; (ii) the
project shall comply with the authority's affirmative action requirements,
adopted pursuant to section 4 of P.L.1979, c.303 (C.34:1B-5.4); (iii) each
worker employed by the developer or subcontractor of a developer working at the
project shall be paid not less than $15 per hour or 120 percent of the minimum
wage fixed under subsection a. of section 5 of P.L.1966, c.113 (C.34:11-56a4),
whichever is higher; and (iv) during the eligibility period, each worker
employed to perform construction work or building services work at the project
shall be paid not less than the prevailing wage rate for the worker's craft or
trade, as determined by the Commissioner of Labor and Workforce Development
pursuant to P.L.1963, c.150 (C.34:11-56.25 et seq.) and P.L.2005, c.379
(C.34:11-56.58 et seq.).
���� Prior to the board considering
an application submitted by a developer for a project restricted under
subparagraph (g) of this paragraph, the authority shall confirm with the
Department of Labor and Workforce Development, the Department of Environmental Protection,
and the Department of the Treasury whether the developer is in substantial good
standing with the respective department, or has entered into an agreement with
the respective department that includes a practical corrective action plan for
the developer.� The developer, or an authorized agent of the developer, shall
certify to the authority that all factual assertions made in the developer's
application are true under the penalty of perjury.� If at any time the
authority determines that the developer made a material misrepresentation on
the developer's application, the developer shall forfeit the award of credits
and the authority shall recapture any tax credits awarded to the developer.
���� (4)� A developer may apply to
the Director of the Division of Taxation in the Department of the Treasury and
the chief executive officer of the authority for a tax credit transfer
certificate, if the developer is awarded a tax credit pursuant to paragraph (2)
or paragraph (3) of this subsection, covering one or more years, in lieu of the
developer being allowed any amount of the credit against the tax liability of
the developer.� The tax credit transfer certificate, upon receipt thereof by
the developer from the director and the chief executive officer of the
authority, may be sold or assigned, in full or in part, to any other person who
may have a tax liability pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5),
sections 2 and 3 of P.L.1945, c.132 (C.54:18A-2 and C.54:18A-3), section 1 of
P.L.1950, c.231 (C.17:32-15), or N.J.S.17B:23-5.� The certificate provided to
the developer shall include a statement waiving the developer's right to claim
that amount of the credit against the taxes that the developer has elected to
sell or assign.� The sale or assignment of any amount of a tax credit transfer
certificate allowed under this paragraph shall not be exchanged for
consideration received by the developer of less than 75 percent of the
transferred credit amount before considering any further discounting to present
value that may be permitted.� Any amount of a tax credit transfer certificate
used by a purchaser or assignee against a tax liability shall be subject to the
same limitations and conditions that apply to the use of the credit by the
developer who originally applied for and was allowed the credit.
���� c.��� All administrative costs
associated with the incentive grant shall be assessed to the applicant and be
retained by the State Treasurer from the annual incentive grant payments.
���� d.��� The incremental revenue
for the revenues listed in subsection a. of this section shall be calculated as
the difference between the amount collected in any fiscal year from any
eligible revenue source included in the State redevelopment incentive grant agreement,
less the revenue increment base for that eligible revenue.
���� e.��� The municipality is
authorized to collect any information necessary to facilitate grants under this
program and remit that information in order to assist in the calculation of
incremental revenue.
(cf: P.L.2024, c.71, s.2)
���� 2.��� Section 3 of P.L.2022,
c.75 (C.52:27D-489i1) is amended to read as follows:
���� 3.��� Notwithstanding any
provision of the "New Jersey Economic Stimulus Act of 2009,"
P.L.2009, c.90 (C.52:27D-489a et al.) to the contrary, the following provisions
shall apply to a mixed-use parking project that is restricted under categories
(vi) or (viii) of subparagraph (b) of paragraph (3) of subsection b. of section
6 of P.L.2009, c.90 (C.52:27D-489f) and undertaken by a municipal redeveloper
after the effective date of P.L.2022, c.75 (C.52:27D-489i1 et al.), for which a
redevelopment incentive grant is awarded:
���� a.��� A municipal redeveloper
shall submit a temporary certificate of occupancy for such proposed mixed-use
parking project no later than June 30,
[
2028
]
2032
.
���� b.��� (1) Except as provided
in paragraph (2) of this subsection, a redevelopment incentive grant award
shall be equal to 100 percent of the total project costs allocated to the
parking component of the project and 40 percent of the total project costs
allocated to the non-parking component of a proposed mixed-use parking project.
���� (2)� A redevelopment incentive
grant award shall be equal to 100 percent of the total project costs allocated
to the parking component of the project and 80 percent of the total project
costs allocated to the non-parking component of the mixed-use parking project
if the mixed-use parking project is:
���� (a)�� constructed upon all or
a portion of a project site that was previously the subject of an award of tax
credits pursuant to the "Urban Transit Hub Tax Credit Act," P.L.2007,
c. 346 (C.34:1B-207 et seq.) or the "New Jersey Economic Stimulus Act of
2009," P.L.2009, c. 90 (C.52:27D-489a et al.), but the tax credits were
not issued;
���� (b)� an entertainment venue
with seating capacity in excess of 5,000; or
���� (c)�� constructed to be
utilized by a visitor center or youth center within or adjacent to a national
historic park.
���� c.��� The terms of any
approval, granted by the authority, for a proposed mixed-use parking project
undertaken by a municipal redeveloper, which has not yet commenced construction
activities other than demolition or site work, may be modified to reflect the
terms established pursuant to P.L.2022, c.75 (C.52:27D-489i1 et al.), upon
application to the authority for review and approval; provided, however, the
developer shall not be required to pay any fee that may be established under
law or regulation related to the application for modification.� All dates of
required action by a municipal redeveloper contained in an approval, granted by
the authority, shall be automatically extended by the thirty-month period
corresponding to the temporary certificate of occupancy submission date
established by subsection a. of this section.
���� d.��� All proposed mixed-use
parking projects shall comply with Leadership in Energy and Environmental
Design (LEED) standards, to the extent that the United States Green Building
Council shall have promulgated standards for the project type proposed.
(cf: P.L.2024, c.71, s.3)
���� 3.��� This act shall take
effect immediately.
STATEMENT
���� This bill extends the deadline
for a developer to submit a temporary certificate of occupancy for certain
qualified residential projects or mixed-use parking projects under the Economic
Redevelopment and Growth Grant program (program) to June 30, 2032.� Under
current law, the deadline to submit this documentation is June 30, 2028.
���� Specifically, this extension
applies for any residential project or mixed-use parking project:� (1) that was
approved under the program after May 1, 2017; (2) that is located in a Garden
State Growth Zone with a population over 125,000, except not including those
projects located in Atlantic, Burlington, Camden, Cape May, Cumberland,
Gloucester, Ocean, and Salem counties; and (3) for which the municipality in
which the project is located submitted a letter of support to the New Jersey
Economic Development Authority identifying up to six projects prior to July 1,
2018.
���� This extension also applies
for any mixed-use parking project:� (1) that is undertaken by a municipal
redeveloper after July 29, 2022; (2) for which a redevelopment incentive grant
is awarded under the program; and (3) that is located in a Garden State Growth
Zone with a population over 125,000, except not including those projects
located in Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester,
Ocean, and Salem counties.