On November 18th, the New Jersey Economic Development Authority (“NJEDA”) held its monthly Board meeting in Atlantic City, New Jersey. Among other items, the Board approved two new Aspire Tax Credit Program ("Aspire") awards, and the creation of the Small Business Liquor License Grant ("SBLLG") program.

The EDA awarded $20,100,000 in Aspire tax credits in connection with a residential development in New Brunswick. This development encompasses 66 units for seniors in a six-story building. Also approved was an award of $25,300,000 in tax credits for an 84-unit development for seniors and veterans in West Deptford.

On November 20th, the EDA held a listening session on the Next New Jersey Program, which aims to spur large-scale investment from AI and AI-related industries, including the AI data center industry, in the State of New Jersey.

The EDA will also host a listening session on November 26th on their new Cultural and Arts Facilities Expansion ("CAFÉ") tax credit program. This program aims to award tax credits to help revive New Jersey's art and cultural institutions.

Aspire

To date, the NJEDA has awarded over $2,000,000,000 in tax credits to 22 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.

Small Business Liquor License Grant

Small Business Liquor License Grant ("SBLLG") program offers reimbursement of up to $100,000 to eligible small businesses for the purchase of qualified inactive liquor licenses. The program anticipates accepting applications in early 2025 and received $10m in funding.

Next New Jersey

The Next NJ program offers tax credits of up to $250,000,000 for qualifying businesses making eligible investments that support the AI industry and are looking to grow their operations in New Jersey.

More about the program from MSW can be found here: Next New Jersey Program Aims to Spur Large-Scale Artificial Intelligence (AI) Data Center Industry through the Provision of Tax Credits

Cultural and Arts Facilities Expansion (CAFE)

The CAFE program will award tax credits to eligible institutions to cover capital and operating costs in the construction and rehabilitation of cultural, educational, and artistic enrichment spaces, including theaters, museums, galleries, libraries, and performing arts centers.

Projects with eligible capital costs of at least $5,000,000 could qualify for tax credits of up to $75,000,000.

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, Tax Credits & Incentives
Phone: (973) 705-7421
Email: cmurphy@murphyllp.com