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.   


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.  

To receive tax credits through the Brownfields Redevelopment Incentive Program, a project must

  • Be a brownfield.
  • Receive a letter of support from the governing body.
  • Demonstrate the project is not economically feasible without the tax credit award. 
  • Prove that a project financing gap exists, and the tax credit being considered for the project is equal or less than the project financing gap.
  • Meet prevailing wage requirements for all remediation and construction work for the redevelopment project and subsequent redevelopment project, if applicable, including 10 years for building services.
  • Not have commenced remediation, unless the full extent of contamination is not known.  Prior environmental assessment and investigation up to 24 months prior to application may be eligible for inclusion in the program.
  • Certify not in any way responsible or liable for the discharge and are not a corporate successor to the discharger.
  • Demonstrate that remediation costs are reasonable and appropriate. DEP will review the proposed costs to determine if the costs are eligible for the program and complete a cost reasonableness determination prior to EDA board approval. 
  • Be a redevelopment project.  The redevelopment project can be a remediation-only project.


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.


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 an 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. 


Fees are determined on a tiered basis based on a project’s total cost of remediation as a reasonable proxy for the complexity of a project and, therefore, the administrative expense and staff time required to evaluate the application. The two tiers are those projects with total cost of remediation $5 million and under, and those with total cost of remediation over $5 million.



Up to $5MM


Application Fee



Approval Fee



Tax Credit Issuance Fee



Transfer/Pledge/Assignment Fee (initial request)



Transfer/Pledge/Assignment Fee (additional request)



Minor Modifications and Extensions that do not require Board Approval 



Major Modifications and Extensions which require Board Approval 



Extensions that do not require Board Approval



Extensions that do require Board Approval 



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

“Brownfield site” means any former or current commercial or industrial site that is currently vacant or underutilized and on which there has been, or there is suspected to have been, a discharge of a contaminant, or on which there is contaminated building material.

“Redevelopment project” means a specific construction project or improvement undertaken, pursuant to the terms of a redevelopment agreement, by a developer within an area of land whereon a brownfield site is located. A redevelopment project may involve construction or improvement upon lands, buildings, improvements, or real and personal property, or any interest therein, including lands under water, riparian rights, space rights, and air rights, acquired, owned, developed or redeveloped, constructed, reconstructed, rehabilitated, or improved.  Redevelopment projects shall include improvements that are solely or primarily remediation related to the remediation of the site of the redevelopment project.

“Government-restricted municipality” means a municipality in this State with a municipal revitalization index distress score of at least 75, that met the criteria for designation as an urban aid municipality in the 2019 State fiscal year, and that on January 7, 2021, the effective date of

P.L. 2020, c. 156 (N.J.S.A. 34:1B-269 et seq.), is subject to financial restrictions imposed pursuant to the “Municipal Stabilization and Recovery Act,” P.L. 2016, c. 4 (N.J.S.A. 52:27BBBB-1 et seq.), or is restricted in its ability to levy property taxes on property in that municipality as a result of the State of New Jersey owning or controlling property representing at least 25 percent of the total land area of the municipality or as a result of the Federal government of the United States owning or controlling at least 50 acres of the total land area of the municipality, which is dedicated as a national natural landmark.

“Qualified incentive tract” means either a population census tract having a poverty rate of 20 percent or more or a census tract in which the median family income for the census tract does not exceed 80 percent of the greater of the Statewide median family income or the median family income of the metropolitan statistical area in which the census tract is situated.

Questions regarding the Brownfields Redevelopment Incentive Program can be addressed to