Bill > S2446

Introduced Session

This bill entitled the "Neighborhood Scholar Revitalization Pilot Program," is intended to aid in the revitalization of declining neighborhoods in the older cities by "seeding" them with a new middle class. The bill establishes a pilot program in four older cities, one in each region of the State, to try to attract recent college graduates to enter into a two-year commitment to settle within certain targeted residential neighborhoods. The four initial cities that will participate in the pilot program are Camden, Trenton, Jersey City, and Paterson. The cities would be responsible for identifying the targeted residential neighborhoods, although those neighborhoods would have to be primarily residential in character and located in a census tract in which the median household income is 60 percent or less of the median income for the housing region in which the census tract is located, as determined for a three-person household by the Department of Community Affairs in accordance with the latest federal decennial census. Each of the four cities participating in the pilot program would be eligible to offer up to 200 qualified graduates a financial incentive to agree to maintain their primary residence within a targeted residential neighborhood for a period of at least 24 months. To qualify for participation in the program, a graduate would need a degree from a two- or four-year accredited institution of higher education, and proof of outstanding student loan indebtedness of at least $7,000. At the end of the required residency period, the program participant would be reimbursed a total $7,000 towards their student loan obligations. This pilot program would be administered by the Urban Enterprise Zone Authority because businesses located within pilot municipalities and an enterprise zone designated pursuant to P.L.1983, c.303, (C.52:27H-60 et seq.) and subject to the "Corporation Business Tax Act (1945)," P.L.1945, c.162 (C.54:10A-1 et seq.) would be entitled to receive neighborhood scholar revitalization tax credits for contributions made to the "Neighborhood Scholar Revitalization Student Loan Reimbursement Fund" established by the bill. This would assist UEZ businesses in recruiting highly educated workers by offering the student loan reimbursement program as an additional benefit. Monies from each pilot municipality's urban enterprise zone assistance fund account could be transferred into the "Neighborhood Scholar Revitalization Student Loan Reimbursement Fund" for the purpose of funding student loan reimbursements. The bill specifies that the amount of the Corporation Business Tax (CBT) tax credit allowed to a business would be equal to the amount of each annual regulated contribution by the business to the "Neighborhood Scholar Revitalization Student Loan Reimbursement Fund" established pursuant to section 3 of the bill, but limited to 50 percent of the amount of tax otherwise due by the business in a given tax year. The bill provides for the carry-forward of unused tax credits. At the end of three years, the Urban Enterprise Zone Authority, in consultation with the Commissioner of Community Affairs, would be required to report to the Governor and Legislature on the success of the pilot program, and make recommendations regarding either the expansion or termination of the pilot program.

AI Summary

Committee Categories

Shirley Turner (D)*, 

Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee (on 05/09/2022)

Official Document