On Wednesday July 17th, the New Jersey Economic Development Authority (“NJEDA”) held its monthly Board meeting in Trenton. Among the actions taken, the Board approved its 19th project under the Aspire Tax Credit Program (“Aspire”).

The NJEDA Board awarded $21,794,281 in Aspire tax credits in connection with the development of a 46,417 square foot wellness center in Newark’s South Ward. The proposed development has a total project cost of $46,00,000. It is anticipated that the project will also utilize New Market Tax Credits and federal and local grants for funding.

Aspire Program

To date, the NJEDA has awarded over $2,000,000,000 in tax credits to 19 development projects in municipalities across New Jersey, including Newark, Hoboken, Union City, Woodbridge, Morristown, 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.

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