On September 30, Governor Murphy signed A-4619 into law. The new law takes effect immediately and amends the Historic Property Reinvestment Act and the Brownfields Redevelopment Incentive Program Act to increase the financial incentives for developers working on projects in government-restricted areas and expand the scope of eligible properties.
Key changes include increased tax credits for historic rehabilitation projects up to 60% of costs for qualified properties and up to 80% for projects in government-restricted municipalities which the law defines as a municipality that has a high level of economic distress based on a revitalization index score of 75 or higher, was classified as needing urban aid, and faces financial limitations. The law introduces higher tax credit caps, with credits for eligible projects increasing to $12 million from $8 million. The law also extends the rehabilitation period from 24 months to 36.
For Brownfield sites, the law increases tax credits from 50% to 60%, with the cap rising from $4 million to $8 million. Solar panel projects on closed sanitary landfills are eligible for 100% of remediation costs as a tax credit, with a cap of $12 million for government-restricted municipalities or $8 million elsewhere. Developers can also apply for tax credits on a rolling basis, although if the demand exceeds availability the New Jersey Economic Development Authority (EDA) may implement a competitive application process.
Contact: Andrew LaFevre, Legislative Analyst, alafevre@njlm.org, 609-695-3481, x116.