Reduces tax credits available for Next New Jersey Program from $500 million to $250 million.

S4512

SENATE, No. 4512

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED JUNE 22, 2026

Sponsored by:

Senator� RENEE C. BURGESS

District 28 (Essex and Union)

SYNOPSIS

���� Reduces tax credits available for Next New Jersey
Program from $500 million to $250 million.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act
reducing the tax credits available for the Next New
Jersey Program and amending P.L.2020, c.156.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� Section 98 of P.L.2020,
c.156 (C.34:1B-362) is amended to read as follows:

���� 98. a. The combined value of
all tax credits awarded under the "Historic Property Reinvestment
Act," sections 2 through 8 of P.L.2020, c.156 (C.34:1B-270 through
34:1B-276); the "Brownfields Redevelopment Incentive Program Act,"
sections 9 through 19 of P.L.2020, c.156 (C.34:1B-277 through 34:1B-287); the
"New Jersey Innovation Evergreen Act," sections 20 through 34 of
P.L.2020, c.156 (C.34:1B-288 through 34:1B-302); the "Food Desert Relief
Act," sections 35 through 42 of P.L.2020, c.156 (C.34:1B-303 through
34:1B-310); the "New Jersey Aspire Program Act," sections 54 through
67 of P.L.2020, c.156 (C.34:1B-322 through 34:1B-335); the "Emerge Program
Act," sections 68 through 81 of P.L.2020, c.156 (C.34:1B-336 et al.);
section 6 of P.L.2010, c.57 (C.34:1B-209.4); the "Cultural Arts Incentives
Program Act," P.L.2023, c.197 (C.34:1B-383 et al.); the "Next New
Jersey Program Act," P.L.2024, c.49 (C.34:1B-394 et al.); P.L.2025, c.111
(C.55:14K-106 et al.); and the "Next New Jersey Manufacturing Program
Act," P.L.2025, c.123 (C.34:1B-403 et al.) shall not exceed an overall cap
of $11.5 billion over a nine-year period, subject to the conditions and
limitations set forth in this section.� Of this $11.5 billion, $2.5 billion
shall be reserved for transformative projects approved under the Aspire
Program.

���� b. (1) The total value of tax
credits awarded under any constituent program of the "New Jersey Economic
Recovery Act of 2020," P.L.2020, c.156 (C.34:1B-269 et al.); the
"Cultural Arts Incentives Program Act," P.L.2023, c.197 (C.34:1B-383
et al.); the "Next New Jersey Program Act," P.L.2024, c.49
(C.34:1B-394 et al.), P.L.2025, c.111 (C.55:14K-106 et al.); and the �Next New
Jersey Manufacturing Program Act,� P.L.2025, c.123 (34:1B-403 et al.) shall be
subject to the following limitations, except as otherwise provided in
subsection c. of this section:

���� (a)�� for tax credits awarded
under the "Historic Property Reinvestment Act," sections 2 through 8
of P.L.2020, c.156 (C.34:1B-270 through 34:1B-276), the total value of tax
credits annually awarded during each of the first six years of the nine-year
period shall not exceed $50 million;

���� (b) (i) for tax credits
awarded under the "Brownfields Redevelopment Incentive Program Act,"
sections 9 through 19 of P.L.2020, c.156 (C.34:1B-277 through 34:1B-287), the
total value of tax credits annually awarded during each of the first six years
of the nine-year period shall not exceed $50 million and the total value of tax
credits awarded over the entirety of the nine-year period shall not exceed
$100,000,000;

���� (ii) from the tax credits made
available to the "Brownfields Redevelopment Incentive Program Act,"
sections 9 through 19 of P.L.2020, c.156 (C.34:1B-277 through 34:1B-287), the
sum of $200,000,000 in tax credits shall be allocated to the New Jersey Housing
and Mortgage Finance Agency, established pursuant to P.L.1983, c.530
(C.55:14K-1 et seq.), which tax credits shall be sold through competitive
auctions conducted pursuant to sections 3 through 7 of P.L.2025, c.111
(C.55:14K-106 through 55:14K-110).� All proceeds of the tax credit auctions
shall be used by the New Jersey Housing and Mortgage Finance Agency for the
purposes authorized in subsection b. of section 4 of P.L.2025, c.111
(C.55:14K-107).� Notwithstanding any provision of law or regulation to the
contrary, the tax credits reallocated to the New Jersey Housing and Mortgage
Finance Agency shall not be subject to any requirements or conditions of the
"New Jersey Economic Recovery Act of 2020," P.L.2020, c.156
(C.34:1B-269 et al.), as amended or supplemented;

���� (c)�� for tax credits awarded
under the "New Jersey Innovation Evergreen Act," sections 20 through
34 of P.L.2020, c.156 (C.34:1B-288 through 34:1B-302), the total value of tax
credits annually awarded during each of the first six years of the nine-year
period shall not exceed $60 million and the total value of tax credits awarded
over the entirety of the nine-year period shall not exceed $300,000,000;

���� (d)�� for tax credits awarded
under the "Food Desert Relief Act," sections 35 through 42 of
P.L.2020, c.156 (C.34:1B-303 through 34:1B-310), the total value of tax credits
annually awarded during each of the first six years of the nine-year period shall
not exceed $40 million;

���� (e)�� for tax credits awarded
under the� "Cultural Arts Incentives Program Act," P.L.2023, c.197
(C.34:1B-383 et al.), the total value of tax credits awarded during the
nine-year period shall not exceed $1,200,000,000;

���� (f)�� for tax credits awarded
under the "New Jersey Aspire Program Act," sections 54 through 67 of
P.L.2020, c.156 (C.34:1B-322 through 34:1B-335), and the "Emerge Program
Act," sections 68 through 81 of P.L.2020, c.156 (C.34:1B-336 et al.), not
including tax credits awarded for transformative projects, the total value of
tax credits annually awarded during each of the first six years of the
nine-year period shall not exceed $1.1 billion.� If the authority awards tax
credits in an amount less than the annual limitation, then the uncommitted
portion of the annual limitation shall be made available for qualified offshore
wind projects awarded under section 6 of P.L.2010, c.57 (C.34:1B-209.4),
pursuant to subparagraph (h) of this paragraph, projects awarded a tax credit
pursuant to the "Next New Jersey Program Act," P.L.2024, c.49
(C.34:1B-394 et al.), pursuant to subparagraph (k) of this paragraph, projects
awarded a tax credit pursuant to the �Next New Jersey Manufacturing Program
Act,� P.L.2025, c.123 (C.34:1B-403 et al.), pursuant to subparagraph (l) of
this paragraph, cultural arts institutions awarded a tax credit pursuant to the
�Cultural Arts Incentives Program Act,� P.L.2023, c.197 (C.34:1B-383 et al.),
pursuant to subparagraph (l) of this paragraph, or New Jersey studio partners,
New Jersey film-lease production companies, and taxpayers, other than New
Jersey studio partners and New Jersey film-lease production companies awarded
under sections 1 and 2 of P.L.2018, c.56 (C.54:10A-5.39b and C.54A:4-12b), pursuant
to subparagraph (i) of this paragraph and subsection d. of this section.�
During each of the first six years of the nine-year period, the authority shall
annually award tax credits valuing no greater than $715 million for projects
located in the northern counties of the State, and the authority shall annually
award tax credits valuing no greater than $385 million for projects located in
the southern counties of the State under the "New Jersey Aspire Program
Act," sections 54 through 67 of P.L.2020, c.156 (C.34:1B-322 through
34:1B-335), and the "Emerge Program Act," sections 68 through 81 of
P.L.2020, c.156 (C.34:1B-336 et al.).� If during any of the first six years of
the nine-year period, the authority awards tax credits under the "New Jersey
Aspire Program Act," sections 54 through 67 of P.L.2020, c.156
(C.34:1B-322 through 34:1B-335), and the "Emerge Program Act,"
sections 68 through 81 of P.L.2020, c.156 (C.34:1B-336 et al.), in an amount
less than the annual limitation for projects located in northern counties or
southern counties, as applicable, the uncommitted portion of the annual
limitation shall be available to be deployed by the authority in a subsequent
year, provided that the uncommitted portion of tax credits shall be awarded for
projects located in the applicable geographic area, except that (i) after the
completion of the third year of the nine-year period, the authority may deploy
50 percent of the uncommitted portion of tax credits for any previous year
without consideration to the county in which a project is located; and (ii)
after the completion of the sixth year of the nine-year period, the authority
may deploy all available tax credits, including the uncommitted portion of the
annual limitation for any previous year, without consideration to the county in
which a project is located;

���� (g)�� except as provided in
subparagraph (j) of this paragraph, for tax credits awarded for transformative
projects under the "New Jersey Aspire Program Act," sections 54
through 67 of P.L.2020, c.156 (C.34:1B-322 through 34:1B-335), the total value of
tax credits awarded during the nine-year period shall not exceed $2.5 billion.�
The total value of tax credits awarded for transformative projects in a given
year shall not be subject to an annual limitation, except that the total value
of tax credits awarded to any transformative project shall not exceed $400
million;

���� (h)�� from the tax credits
made available, pursuant to subparagraph (f) of this paragraph, to the
"New Jersey Aspire Program Act," sections 54 through 67 of P.L.2020,
c.156 (C.34:1B-322 through 34:1B-335), and the "Emerge Program Act,"
sections 68 through 81 of P.L.2020, c.156 (C.34:1B-336 et al.), not including
tax credits awarded for transformative projects, an amount not to exceed
$350,000,000 shall be made available for qualified offshore wind projects
awarded a credit pursuant to section 6 of P.L.2010, c.57 (C.34:1B-209.4) during
the first three years of the nine-year period;

���� (i)��� beginning in fiscal
year 2023, from the tax credits made available, pursuant to subparagraph (f) of
this paragraph, to the "New Jersey Aspire Program Act," sections 54
through 67 of P.L.2020, c.156 (C.34:1B-322 through 34:1B-335), and the "Emerge
Program Act," sections 68 through 81 of P.L.2020, c.156 (C.34:1B-336 et
al.), not including tax credits awarded for transformative projects, additional
amounts shall be made available for New Jersey studio partners, New Jersey
film-lease production companies, and taxpayers, other than New Jersey studio
partners and New Jersey film-lease production companies pursuant to sections 1
and 2 of P.L.2018, c.56 (C.54:10A-5.39b and C.54A:4-12b);

���� (j)��� beginning in fiscal
year 2024, from the tax credits made available, pursuant to subparagraph (f) of
this paragraph, to the "New Jersey Aspire Program Act," sections 54
through 67 of P.L.2020, c.156 (C.34:1B-322 through 34:1B-335) and the "Emerge
Program Act," sections 68 through 81 of P.L.2020, c.156 (C.34:1B-336 et
al.), not including tax credits awarded for transformative projects, an amount
not to exceed $500,000,000 may be annually transferred for the award to
transformative projects under the "New Jersey Aspire Program Act,"
sections 54 through 67 of P.L.2020, c.156 (C.34:1B-322 through 34:1B-335),
provided that: (i) the remaining allocation of tax credits otherwise available
for transformative projects, pursuant to subparagraph (g) of this paragraph, is
less than $1,000,000,000; and (ii) the authority board determines that the
transfer of tax credits is warranted based on such criteria as the authority
deems appropriate, which may include the criteria set forth in paragraph (2) of
this subsection.� If a transfer of tax credits is made pursuant to this
subparagraph, the authority shall award no greater than 65 percent of the tax
credits transferred pursuant to this subparagraph to transformative projects
located in the northern counties of the State and no greater than 35 percent of
the tax credits transferred pursuant to this subparagraph to transformative
projects located in the southern counties of the State;

���� (k) beginning in fiscal year
2025, from the tax credits made available, pursuant to subparagraph (f) of this
paragraph, to the "New Jersey Aspire Program Act," sections 54
through 67 of P.L.2020, c.156 (C.34:1B-322 through 34:1B-335) and the "Emerge
Program Act," sections 68 through 81 of P.L.2020, c.156 (C.34:1B-336 et
al.), but not including tax credits awarded for transformative projects, an
amount not to exceed
[
$500,000,000
]

$250,000,000

shall be made available for projects awarded a tax credit pursuant to the
"Next New Jersey Program Act," P.L.2024, c.49 (C.34:1B-394 et al.);

���� (l)� once the tax credits
allocated for competitive auctions conducted pursuant to sections 3 through 7
of P.L.2025, c.111 (C.55:14K-106 through 55:14K-110) pursuant to
subsubparagraph (ii) of subparagraph (b) of this paragraph are exhausted, from
the tax credits made available, pursuant to subparagraph (f) of this paragraph,
to the "New Jersey Aspire Program Act," sections 54 through 67 of
P.L.2020, c.156 (C.34:1B-322 through 34:1B-335) and the "Emerge Program
Act," sections 68 through 81 of P.L.2020, c.156 (C.34:1B-336 et al.), but
not including tax credits awarded for transformative projects, the sum of
$300,000,000 shall be made available to the New Jersey Housing and Mortgage
Finance Agency, established pursuant to P.L.1983, c.530 (C.55:14K-1 et seq.),
which tax credits shall be sold through� competitive auctions conducted
pursuant to sections 3 through 7 of P.L.2025, c.111 (C.55:14K-106 through
55:14K-110).� The amount made available pursuant to this subparagraph shall be
allocated in annual installments, each of which is not to exceed the cap set
forth in paragraph (3) of subsection a. of section 4 of P.L.2025, c.111
(C.55:14K-107), as needed to conduct auctions pursuant to that section.� All
proceeds of the tax credit auctions shall be used by the New Jersey Housing and
Mortgage Finance Agency for the purposes authorized in subsection b. of section
4 of P.L.2025, c.111 (C.55:14K-107).� Notwithstanding any provision of law or
regulation to the contrary, the tax credits reallocated to the New Jersey Housing
and Mortgage Finance Agency shall not be subject to any requirements or
conditions of the "New Jersey Economic Recovery Act of 2020,"
P.L.2020, c.156 (C.34:1B-269 et al.), as amended or supplemented; and

���� (m)� beginning in fiscal year
2026, from the tax credits made available, pursuant to subparagraph (f) of this
paragraph, to the "New Jersey Aspire Program Act," sections 54
through 67 of P.L.2020, c.156 (C.34:1B-322 through 34:1B-335) and the "Emerge
Program Act," sections 68 through 81 of P.L.2020, c.156 (C.34:1B-336 et
al.), but not including tax credits awarded for transformative projects, an
amount not to exceed $500,000,000 shall be made available for projects awarded
a tax credit pursuant to the �Next New Jersey Manufacturing Program Act,�
P.L.2025, c.123 (C.34:1B-403 et al.) and an amount not to exceed $500,000,000
shall be made available for cultural arts institutions awarded a tax credit
pursuant to the �Cultural Arts Incentives Program Act,� P.L.2023, c.197
(C.34:1B-383 et al.). In accordance with the provisions of subsection g. of
section 5 of P.L.2025, c.123 (C.34:1B-407), $100,000,000 of the tax credits
made available to the �Next New Jersey Manufacturing Program Act,� P.L.2025,
c.123 (C.34:1B-403 et al.) pursuant to this subparagraph shall be reserved
exclusively for eligible businesses that are clean energy product
manufacturers.

���� (2)�� The authority may in any
given year determine that it is in the State's interest to approve an amount of
tax credits in excess of the annual limitations set forth in paragraph (1) of
this subsection, but in no event more than $200,000,000 in excess of the annual
limitation, upon a determination by the authority board that such increase is
warranted based on specific criteria that may include:

���� (i)��� the increased demand
for opportunities to create or retain employment and investment in the State as
indicated by the volume of project applications and the amount of tax credits
being sought by those applications;

���� (ii)�� the need to protect the
State's economic position in the event of an economic downturn;

���� (iii)� the quality of project
applications and the net economic benefit to the State and municipalities
associated with those applications;

���� (iv)� opportunities for
project applications to strengthen or protect the competitiveness of the State
under the prevailing market conditions;

���� (v)�� enhanced access to
employment and investment for underserved populations in distressed
municipalities and qualified incentives tracts;

���� (vi)� increased investment and
employment in high-growth technology sectors and in projects that entail
collaboration with education institutions in the State;

���� (vii)� increased development
proximate to mass transit facilities;

���� (viii)� any other factor
deemed relevant by the authority.

���� c.���� In the event that the
authority in any year approves projects for tax credits in an amount less than
the annual limitations set forth in paragraph (1) of subsection b. of this
section, then the uncommitted portion of the annual limitation shall be available
to be deployed by the authority in future years for projects under the same
program, provided however, that in no event shall the aggregate amount of tax
credits approved be in excess of the overall cap of $11.5 billion, and in no
event shall the uncommitted portion of the annual limitation for any previous
year be deployed after the conclusion of the nine-year period.

���� d.��� Notwithstanding the
provisions of any other law to the contrary, the uncommitted balance of the
total value of tax credits authorized for award by the authority pursuant to
subparagraph (f) of paragraph (1) of subsection b. of this section to the
"New Jersey Aspire Program Act," sections 54 through 67 of P.L.2020,
c.156 (C.34:1B-322 et seq.), and the "Emerge Program Act," sections
68 through 81 of P.L.2020, c.156 (C.34:1B-336 et al.), shall be made available
for tax credits allowed to New Jersey studio partners, New Jersey film-lease
production companies, and taxpayers, other than New Jersey studio partners and
New Jersey film-lease production companies pursuant to sections 1 and 2 of
P.L.2018, c.56 (C.54:10A-5.39b and C.54A:4-12b).� The value of tax credits,
including tax credits allowed through the granting of tax credit transfer
certificates, made available to New Jersey studio partners, New Jersey
film-lease production companies, and taxpayers, other than New Jersey studio
partners and New Jersey film-lease production companies pursuant to this
subsection shall be as follows:

���� (1)�� in fiscal year 2023,
$250,000,000 for New Jersey studio partners and $250,000,000 for New Jersey
film-lease production companies;

���� (2)�� in fiscal year 2024,
$250,000,000 for New Jersey studio partners and $250,000,000 for New Jersey
film-lease production companies; and

���� (3)�� in fiscal year 2025,
$250,000,000 for New Jersey studio partners, $250,000,000 for New Jersey
film-lease production companies, and $300,000,000 for taxpayers, other than New
Jersey studio partners and New Jersey film-lease production companies.

���� If the value of tax credits,
including tax credits allowed through the granting of tax credit transfer
certificates, approved to New Jersey studio partners and New Jersey film-lease
production companies in any fiscal year pursuant to this subsection is less
than the cumulative total amount of tax credits permitted to be approved in
that fiscal year, the authority shall certify the amount of the remaining tax
credits available for approval to each such category in that fiscal year and
shall increase the cumulative total amount of tax credits permitted to be
approved for New Jersey studio partners and New Jersey film-lease production
companies in the subsequent fiscal year by the certified amount remaining for
each such category from the prior fiscal year.

(cf: P.L.2025, c.127, s.10)

���� 2.��� This act shall take
effect immediately.

STATEMENT

���� This bill would reduce the
amount of tax credits available for the Next New Jersey Program by $250 million.

���� The "Economic Recovery
Act of 2020," P.L.2020, c.156 (ERA), authorized the award of tax credits
under the New Jersey Aspire Program, Emerge Program, and certain other economic
development programs with limits on the amount of tax credits available under
each program.� Under current law, the total value of tax credits available
under the ERA is limited to $14 billion over a nine-year period.� Of the amounts
initially authorized for the New Jersey Aspire Program and Emerge Program, $500
million in tax credits have been made available under the Next New Jersey
Program (Next NJ) for certain projects related to the development of artificial
intelligence or data centers.� As of May 2026, the New Jersey Economic
Development Authority has awarded $250 million in tax credits to one project
under Next NJ, which award is not impacted by this bill.

���� This bill would reduce the
total amount of tax credits available under Next NJ by the uncommitted amount
of $250 million.� As a result, the New Jersey Economic Development Authority
would no longer be permitted to award additional tax credits under the program.