New Jersey Enacts Economic Opportunity Act of 2013

The New Jersey Economic Opportunity Act of 2013 (the “Act”) was signed into law on September 18, 2013. The Act is intended to promote job creation and the redevelopment of urban centers, suburban office parks and areas impacted by Hurricane Sandy by expanding state programs that offer tax incentives. The Act phases out three existing programs and expands two existing programs: the Grow New Jersey Assistance (“Grow NJ”) Program and the Economic Redevelopment and Growth (“ERG”) Program. The Grow NJ Program provides incentives and tax credits for businesses that invest and create jobs in New Jersey. Under the Act the Grow NJ Program provides bonus tax credits for mega projects and projects located in Urban Transit Hubs and the Garden State Growth Zone, and lowers minimum capital investments and job creation requirements for 8 counties including Camden and Atlantic counties. Continue reading “New Jersey Enacts Economic Opportunity Act of 2013”

Senate Proposes Hurricane Sandy and National Relief Act of 2012

The Senate introduced a summary of the proposed Hurricane Sandy and National Relief Act of 2012. The major provisions of the Act include special allocations of Federal New Markets Tax Credit authority, Federal Low-Income Housing tax credit allocation; and Recovery Zone Bond authority. The proposed Act provides for an allocation of Federal New Markets Tax Credit authority of $500 million a year for three years to be used in federally declared major disaster areas. For the years 2013, 2014, and 2015, the Act permits States affected by Hurricane Sandy to allocate additional amounts of Federal Low-Income Housing tax credits for use in the disaster area of up to $8.00 multiplied by the State’s disaster area population. The Act will also permit affected States to issue tax-exempt Sandy bonds to finance qualified activities including residential rental projects, nonresidential real property and public utility property located in the disaster area.

Duane Morris Forms Hurricane Sandy Sub-Practice Group

In anticipation of the Federal programs which will be enacted to assist in the redevelopment of areas affecting by Hurricane Sandy, Duane Morris has formed the Hurricane Sandy Housing and Community Development Sub-Practice Group. In the aftermath of Hurricane Katrina Congress passed legislation which provided Federal low-income housing tax credit allocation, Federal New Markets Tax Credit Authority and special tax subsidized bond financing designated for effected areas. The Hurricane Sandy Housing and Community Development Sub-Practice Group is an interdisciplinary group including attorneys with the following specialties: Art Momjian, Federal tax credit programs, Harvey Johnson (NJ) and Jon Popin (NY), affordable housing; Bob Archie, Nat Abramowitz, and Bruce Jurist tax exempt bond finance; Marty Monaco (NJ), tax-exempt entities; and Chester Lee (NY) and Chris Winter, real estate and commercial financing. Members of the Hurricane Sandy Housing and Community Development Sub-Practice Group will provide a unique value to clients as a result of their experience with the Katrina programs, and their extensive knowledge and experience with state and local affordable housing and community development programs in New Jersey and New York. Members of the group can assist clients combine state and local programs with the Federal Hurricane Sandy relief legislation.

New Jersey’s Urban Transit Tax Credit Program Provides Job Incentive

The New Jersey Urban Transit Tax Credit Program provides an average incentive to a company of $167,000 for every job created in or saved from leaving the state. The tax credit is for projects of $50 million or more within a half mile to one mile radius of transportation centers in nine cities such as Camden, Newark, Jersey City, Hoboken, Elizabeth, Paterson, East Orange and Trenton. The development’s “multiplier effect” of new employment and commerce must generate 10% more in new tax revenue than the amount of the tax credit. Residential projects do not have to have the same job creation effect, but they also do not qualify for as generous a subsidy.

The program started small, with state officials estimating that only a few businesses would qualify, but it has expanded into the state’s most important business incentive program. Since 2010, 18 residential, commercial and mixed-use projects have been awarded $977 million under the program. The recipients have pledged to invest $2.1 billion, create 2,910 jobs and retain 2,935 others deemed at risk of moving out of state.

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The opinions expressed on this blog are those of the author and are not to be construed as legal advice.

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