New Jersey legislation amends the grant and corporate income tax credit program for certain residential redevelopment and mixed-use parking projects. Specifically, the legislation:
- increases the maximum grant or tax credit available;
- extends the credit application deadline for certain projects; and
- expands the definition of “parking component” for mixed-use parking projects.
Maximum Amount Increased
Currently, the maximum grant or credit for most residential projects is 30% of the total project costs. For projects located in a Garden State Growth Zone, the maximum is 40% of total project costs.
In addition, the current maximum for a mixed-use parking project is:
- 100% of total project costs allocable to the parking component; and
- 40% of total project costs allocable to the non-parking component.
The legislation increases the maximum grant or tax credit for residential projects to 80% of total project costs if:
- the project is constructed on a site that was previously the subject of an award of urban transit hub tax credits; and
- the urban transit hub credits were not issued.
In addition, for certain mixed-use parking projects, the maximum for non-parking components is increased to 80% of project costs. This increase applies to the following types of projects:
- projects constructed on a site that was previously the subject of an award of urban transit hub tax credits, if the credits were not issued;
- entertainment venues with seating capacity over 5,000;
- visitor centers in or adjacent to a national historic park; and
- youth centers in or adjacent to a national historic park.
However, special rules also exist if an increase applies to a project developed by a non-public, for-profit entity. The increase’s effect on the project financing gap must be considered if the increased amount exceeds 40% of total costs.
Application Deadline Extended
The legislation extends the credit application deadline for certain developers in Garden State Growth Zones with a population over 125,000. The due date is moved from July 1, 2018, to July 1, 2019.
The due date for submitting a project’s temporary certificate of occupancy is also pushed back. It is changed from July 28, 2021, to July 28, 2022.
Furthermore, the municipality where a project is located must now submit a letter of support identifying up to six projects. The letter must contain a project scope for each project. It must be submitted before July 1, 2018, but it can be supplemented until July 1, 2019.
Definition of “Parking Component” Expanded
The definition of “parking component” is modified to include:
- enclosed pedestrian walkways; and
- sky bridges.
In addition, a parking component may be in:
- the same structure as all the non-parking components; or
- a structure with some non-parking components if the remaining non-parking components are in an adjacent or nearby structure that is no more than one-third of a mile from the parking components.
Ch. 44 (S.B. 1968), Laws 2018, effective June 28, 2018