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BROWNFIELD REDEVELOPMENT INCENTIVE


The Brownfields Redevelopment Incentive is a $50 million per year competitive, project-based tax credit. The program provides a one-time transferrable tax credit to incentivize environmental remediation, abatement, and demolition activities that will allow for the redevelopment of brownfields sites for commercial, retail, or mixed-use development or expansion.   

ELIGIBILITY

The Brownfields Redevelopment Incentive covers specific costs associated with brownfield remediation and redevelopment. Eligible costs include those associated with investigation and remediation of environmental contamination and building and structural remedial activities.

Tax credits will be awarded through a competitive application process to ensure the best projects receive State support. The NJEDA will partner with the NJ Department of Environmental Protection (NJDEP) to create evaluation criteria for competitive application process. To receive tax credits through the program, the developer must demonstrate that a financing gap exists. Parties that caused or contributed to site contamination are not eligible for the program.  

AWARD SIZE

The Brownfields Redevelopment Incentive provides one-time tax credits issued in the year remediation is completed.  Individual projects can receive 50 percent of actual or projected remediation costs up to $4 million.  Individual projects in a Government-Restricted Municipality (GRM) or Qualified Incentive Tract can receive 60 percent of actual or projected remediation costs up to $8 million.  Tax credits are transferable and can be redeemed for 75 to 85 percent of their value.

FISCAL AND RESIDENT PROTECTIONS

In order to receive tax credits through the Brownfields Redevelopment Incentive, developers must be in good standing with the NJ Department of Labor, NJ Department of Treasury, and the NJ Department of Environmental Protection. The developer must also enter into a redevelopment agreement with the NJEDA and a memorandum of agreement or other oversight document with NJDEP. The municipality in which the project will take place must provide a letter of support.  

Projects will also be required to meet minimum environmental standards and pay prevailing wages to construction workers through the completion of the redevelopment project. Projects that include retail and/or distribution centers may require labor harmony agreements. The NJEDA may recapture all or part of a tax credit award if the organization that received the credit does not remain in compliance with its commitments. 

The full statutory text of the program can be found in sections 9-19 of the Economic Recovery Act of 2020. 

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