Governor Murphy proposed five new economic incentive programs in his Economic Development Plan: NJ Forward, NJ Aspire, Brownfield Tax Credit, Historic Preservation Tax Credit, and NJ Evergreen Innovation Fund. The NJ Forward program is a jobs-based incentive program building off the Grow NJ program. The NJ Aspire program will provide gap financing for real estate projects through competitive rounds. The Brownfield Tax Credit program will replace grants and pair with loan programs to encourage brownfield remediation. The Historic Preservation Tax Credit program will similarly provide tax credits for redevelopment of historic properties.

1. What Happens to White Elephants When
the Circus Leaves Town?
Paul Ceppi
Managing Director - Business Development
March 8, 2019

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Governor Murphy proposed a package of five new incentive programs in his
Economic Development Plan
NJ Forward Program
NJ Aspire Program
Brownfield Tax Credit
Program
Historic Preservation
Tax Credit Program
NJ Evergreen
Innovation Fund
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Proposed programs Successor to…
Grow New Jersey
Program
Economic Redevelop-
ment & Growth
Program (ERG)
Brownfield grant
program
New
New

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Key proposed program features
 Annual program cap of $200M, allocated on a first-come-first serve basis
 Five-year awards
 Per job annual awards (base: $2,400, max: $6,400)
 New jobs in a company (or a business unit) within a targeted industry
 New jobs in a US or regional headquarters
 New and retained jobs in a “Qualified Incentive Tract” (e.g., distressed census tract)
 Major retention projects (e.g., 500-1000+ retained jobs)
 Bonus structure aligns with Administration priorities (e.g., local employment that
reduces infrastructure burdens and increases vibrancy, local workforce development
investments, jobs significantly above county median salaries, transit-oriented
projects, research projects with universities)
 Increased flexibility for smaller, high-growth companies and larger firms
 No capital investment required for companies under 50 people, milestone-
based awards for companies under 100 people
 Ability to donate to a local infrastructure fund instead of “gold plating” office
buildings to meet capital investment requirements
 50% of total work hours must be at the facility, 80% of time in State
Program
design
Eligibility
criteria
Bonus
structure
Flexibility
The NJ Forward program is a jobs-based incentive program that builds
off the best parts of the Grow NJ program
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Key proposed program features
 Annual program cap of $100M,
 Biannual, competitive award cycle (e.g., twice a year the EDA will accept applications
for residential and commercial projects, enabling the state to get the best possible
projects for our communities.
 Awards capped at financing gap up to 24% of project cost
 Supports real-estate goals around innovation economy; targets downtowns near
transit; aims to bring low- and moderate-income housing to suburban TOD and job-
centric areas, and drive market-rate housing in distressed areas
 Economic feasibility
 Workforce and apprenticeship
programs connected to project
 Potential for job creation and
economic development
 Bonus structure aligns with Administration priorities (e.g., located in a Qualified
Incentive Tract, address a food desert, include health care facilities, is transit-oriented,
in a tourism destination, support electric vehicles/convertible garages, supports
incubators and collaborative workspaces)
Program
design
Project
assessment
criteria
Bonus
structure
 Benefit of project to the community
 Advancement of State, regional, and
local development planning strategies
 Geographic diversity and extent of
social distress of area
The NJ Aspire program is a gap-based financing tool that will be run in
competitive rounds twice a year
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Key proposed program features
 Annual cap: $20 million
 Project cap: $4 million (40% of the actual remediation costs or 40% of the projected
remediation costs, whichever is less)
 Tax Credit is one-time tax credit issued in the year of completion of remediation
 EDA will partner with DEP to create evaluation criteria for two competitive application
rounds a year
 Must demonstrate a project financing gap exists
 Program replaces state’s grant-based brownfields remediation program that relies on
appropriations and tends to get used for large projects. Pairs with EDA’s proposed
expanded Brownfields Loan Program
 Increased tax base, creation of new jobs, utilization of existing infrastructure,
protection of human health and the environment
 Will catalyze more remediation projects, including smaller projects, increase job
creation and economic development, and provide for better budget planning:
o Compensation for remediation of pollutants from the interior and/or exterior of
contaminated building (ex. asbestos, PCBs, lead paint)
o Integrating the tax incentive into a project’s financing strategy can enhance
project cash flow
Program
design
Benefits to
communities
The Brownfield tax credit program will replace current grant programs
and pair with the proposed EDA brownfield loan programs
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Benefits to
developers

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Key proposed program features
 Annual Cap: $20 million
 Project Cap: $4 million (16% of the actual cost of rehabilitation or 16% of the
projected cost of rehabilitation, whichever is less; a maximum of 24% of costs with
potential bonuses)
 Must demonstrate a project financing gap
 EDA will partner with DEP and DCA to create evaluation criteria for two competitive
application rounds a year (may include: economic feasibility, transformative to a
neighborhood, potential job creation, other factors that will allow for different sized
projects and geographic diversity)
 Tax Credit is one-time tax credit issued in the year of completion of redevelopment
 20 percent of project is set aside for affordable housing for low- or moderate-income
households
 Includes incubator facility or collaborative workspaces
 Program is modeled after the National Historic Tax Credit program:
o Applicant is owner or lessee of historic site/building and intends redevelop site
immediately upon approval of tax credit
o Applies to income-producing structures only (not for residential)
o Allowable costs of rehabilitation are the costs in the national program
Program
design
Bonus
structure
The Historic Preservation tax credit program will create a new tool for
place-based economic development in New Jersey
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Eligibility

7. @NewJerseyEDA
Visit NJEDA.com for
more information.