The New Jersey Economic Recovery Act of 2020 (A4)
On January 7, 2021, Governor Murphy signed historic legislation; the “
New Jersey Economic Recovery Act of 2020.” The Act is expected to propel the state’s economic recovery and growth for much of the next decade by way of new initiatives, cutting-edge programs, and tax incentives packages.
The new legislation includes programs to promote growth in the state’s urban centers, including the Brownfields Redevelopment Incentive; the Historic Property Tax Credit to incentivize the restoration of historic buildings and properties; and the Community Anchored Development Program which will incentivize the construction of new developments by partnering with universities, hospitals, arts, and cultural organizations and give the state an equity stake in the development.
Another of the many programs, the New Jersey Aspire Program, is a gap financing program to support commercial, industrial, mixed-use, and residential real estate development projects, with an emphasis on higher need communities.
There are many other incentive programs covering a wide set of areas. There will be caps on the incentives awarded each year, as well as over the life of the programs, and greater oversight to ensure responsible investment and tangible community benefits. Additionally, rules will require that not less than prevailing wage be paid to workers employed in connection with certain incentive programs.
This Bill authorizes $14 billion of tax credits over seven years.
