On Wednesday September 11th, the New Jersey Economic Development Authority (“NJEDA”) held its monthly Board meeting in Newark, NJ. At this meeting, the Board approved its 20th Aspire Tax Credit Program ("Aspire") project as well as its second Historic Property Reinvestment Program ("HPRP") project.

The NJEDA Board awarded $11,500,000 in Aspire tax credits in connection with a 43-unit residential development in Somers Point, NJ. The development encompasses two three-story buildings, and will also be financed by tax credits from the New Jersey Housing and Mortgage Finance Agency.

The NJEDA Board approved a Historic Property Reinvestment Program project for $8,000,000 in tax credits for the renovation of the Schwehm Building in downtown Atlantic City, NJ. When complete, this 8-story former office building will include 56 residential units and commercial spaces. The NJEDA is currently accepting applications for this round of tax credits, which will remain open until October 29th 2024.

Aspire Program

To date, the NJEDA has awarded over $2,000,000,000 in tax credits to 20 development projects in municipalities across New Jersey, including Woodbridge, Morristown, Newark, Hoboken, Union City, Bayonne, Trenton, and Camden. The program has been used to finance several large-scale projects, including the following:

• 386-unit mixed-use project in Hoboken, NJ.
• 58-acre, 1,567,385 square feet film studio in Bayonne, NJ.
• 101-unit senior affordable housing development in Union City, NJ.
• $356,000,000 mixed-use development in Newark, NJ, including 350 residential units, a new 53,000 square foot arts-education and community facility, 12,600 square feet of commercial space, and improvements to a 100,000 square foot performing arts center.

The Aspire Tax Credit Program provides tax credits covering between 50-80% of eligible project costs (not to exceed between $60M-$120M) for qualifying projects in eligible locations. Aspire can be used for both residential and commercial developments, and for projects as small as 25,000 – 50,000 square feet for commercial and $5,000,000 – $17,500,000 for residential, depending on location.

Historic Property Reinvestment Program

The HPRP is a competitive $50,000,000 annual gap financing tax credit that supports the development of eligible historic properties in qualifying locations in New Jersey. It can be combined with the Federal Historic Tax Credit and covers between 45-60% of eligible costs (not to exceed between $4M-$12M).

The program has approved over $50,000,000 in tax credits for two projects, including the Loews Theater in Jersey City. The NJEDA is currently accepting applications for this round of tax credits, which will remain open until October 29th 2024.

For more information, please contact:

Brendan Pytka
Director of Tax Credits & Incentives
Phone: (862) 418-3702
Email: bpytka@murphyllp.com

Chris J. Murphy
Partner, Chair of Tax Credits & Incentives Practice
Phone: (973) 723-7036
Email: cmurphy@murphyllp.com