The Aspire Program is a tax credit incentive program administered by the New Jersey Economic Development Authority (“NJEDA”) for commercial, mixed-use and residential projects.
- This program is subject to rules/regulations to be issued by the NJEDA.
- This outline does not include all of the provisions and requirements under the Aspire program.
- Must be located in an incentive area- Planning Area 1 (Metropolitan), Planning Area 2 (Suburban) or a Designated Center.
- Must demonstrate that a project financing gap of 20% exists or the NJEDA must determine that the redevelopment project will generate a below market rate of return.
- Must comply with minimum environmental and sustainability standards.
- Subject to affirmative action requirements.
- Subject to prevailing wage requirements for construction workers and building services workers.
- Project must be completed within 4 years of executing the incentive award agreement.
Additional eligibility requirement for a commercial project
- Developer must have at least 20% equity participation of the total project cost.
Additional eligibility requirement for a residential project consisting of newly constructed residential units
- Residential projects subject to affordable housing set aside requirements.
Application and Consideration Process
- Must be submitted prior to March 1, 2027 and include a letter of support from the governing body.
- Must demonstrate that the award of tax benefits will yield a net positive benefit to the State.
- First come, first-served basis.
- Credits awarded up to 15 years for commercial/mixed-use projects and up to 10 years for residential projects.
Community Benefits Agreement
- Must be entered into with the NJEDA and the county or municipality for projects with a total project cost equal to or exceeding $10 million, but it is not required if there is a redevelopment agreement that has been certified by the municipality.
- Total tax credits not to exceed 45% and in some cases up to 50% of the total project costs.
- Value of credits approved shall not exceed $50 million per redevelopment project if located in a qualified incentive tract, government-restricted municipality or municipality with a Municipal Revitalization Index distress score of at least 50, or $32 million for all other projects.
- Tax credits can be sold by the developer.
For more information, please contact Nick Talvacchia at (609) 572-7544 or email@example.com or Rebecca Lafferty at (609) 572-7550 or firstname.lastname@example.org.
Our blogs are not intended to substitute for our legal advice to our clients based on your specific needs or requests. In addition, our guidance is subject to, and can be superseded by new laws, rules, regulations, or orders. Moreover, some directives from the Federal and State authorities can appear, and can be, contradictory or in conflict, so please contact us for assistance.