Legislation to stimulate investment in historic properties and brownfield sites signed by Gov. Murphy
NEW JERSEY – Governor Murphy Wednesday signed legislation into law sponsored by Senate Majority Leader M. Teresa Ruiz and Senator Shirley K. Turner.
The legislation modifies provisions in the Historic Property Reinvestment Program and the Brownfields Redevelopment Incentive Program to spur further investment in historic buildings and contaminated sites.
“The high cost of environmental remediation and historic preservation can greatly discourage development in underserved communities, where these investments can have the biggest impact,” said Ruiz (D-Essex/Hudson). “Increasing tax incentives and fixing administrative hurdles for builders to take on projects that require historic preservation and environmental cleanup will create jobs, stimulate local economies, and revitalize our communities while preserving the unique character of our neighborhoods.”
“By enhancing tax incentives in the Historic Property Reinvestment Act and the Brownfields Redevelopment Incentive Program Act, we will spur greater investment in historic properties and contaminated sites, especially in underserved areas,” said Turner (D-Mercer/Hunterdon). “This legislation promotes economic and ethical development that prioritizes the history of our communities and works to ensure they are healthy, safe places to live and work.”
The bill, S-3479, increases the value of tax credits awarded for historic redevelopment and brownfield projects and revises certain eligibility requirements to allow more developers to partake in each program.
Under the revised Historic Property Reinvestment Program, the tax credits for rehabilitation projects in qualified incentive tracts or government-restricted municipalities will be increased from 45% to 60% of project costs, with the maximum credit rising from $8 million to $12 million. For other qualified properties, the tax credit increased from 40% to 50% of project costs, with the maximum credit rising from $4 million to $8 million.
Certain facade rehabilitation projects are also now eligible to take part in the program.
The revised Brownfields Redevelopment Incentive Program modifies the application process, increases the value of tax credits, and expands the definition of eligible properties.
Applications to the program will now be accepted on a rolling basis unless the demand for tax credits exceeds the availability of credits.
The bill increases the value of tax credits for remediation in redevelopment projects located in qualified incentive tracts or government-restricted municipalities from 60% to 80% of remediation costs, with a maximum credit of $12 million. It also introduces a 100% tax credit for solar panel projects on closed sanitary landfill sites in these areas, capped at $12 million and $8 million for similar projects elsewhere. For all other redevelopment projects, the tax credit was increased from 50% to 60% of remediation costs, with a maximum credit of $8 million.
The bill also expands the definition of a brownfield site to include properties such as former public works departments, abandoned hospitals, and vacant schools.
