Bill > S4027

This bill modifies the tax credit purchase provisions of the New Jersey Economic Recovery Act of 2020 by requiring the Director of the Division of Taxation to purchase unused tax credits from specific economic development programs. The bill expands the existing tax credit purchase program by mandating purchases for two additional programs: the New Jersey Aspire Program Act and the Cultural Arts Incentives Program Act. For most programs, the director can purchase unused tax credits at up to 75% of the credit amount, but with special provisions for the Aspire and Cultural Arts programs, where the director will pay 85% of the credit amount if the tax credit was issued at least one year prior. The bill adds new language specifying that for the Aspire Program, if the application is submitted after the sixth year of the eligibility period, the amount over the reasonable return on investment increases to 50%. This legislation aims to provide more flexibility and support for businesses and developers participating in these economic development programs by creating a more standardized mechanism for selling unused tax credits to the state. The changes apply to various economic development initiatives, including programs focused on historic property reinvestment, brownfield redevelopment, innovation, food desert relief, community development, and cultural arts.

Budget and Finance

https://www.njleg.state.nj.us/bill-search/2024/S4027