Expands allowance for developers to carry forward unused tax credits under New Jersey Aspire Program.
Impact
This expansion is significant as it allows developers greater flexibility in managing their tax credits and incentivizes long-term investment in redevelopment projects. Under the new law, the New Jersey Economic Development Authority (EDA) will no longer need to approve the carry forward of credits. This change will streamline the process for developers and may lead to increased participation in the Aspire Program, potentially spurring economic development in the state.
Summary
Assembly Bill A4395, introduced in New Jersey, aims to amend the New Jersey Aspire Program by expanding the circumstances under which developers can carry forward unused tax credits. Previously, developers were only allowed to forward unused credits if their redevelopment projects were adversely affected by extraordinary circumstances like natural disasters or state emergencies. The new provisions will enable developers to carry forward unused tax credits beyond these specific scenarios, as long as the credits exceed their eligible tax liabilities.
Conclusion
In summary, A4395 seeks to make the New Jersey Aspire Program more accommodating for developers by allowing broader carry forward of tax credits. While this may enhance investment opportunities and local redevelopment efforts, it raises questions about fiscal responsibility and regulatory oversight that are essential for the program’s integrity.
Contention
However, there are concerns regarding the impact of this bill on state tax revenue and oversight. Critics argue that increasing the allowance for deferred tax credits could lead to significant losses in state revenue, which is particularly concerning in the context of funding for essential services. Additionally, there might be potential misuse of the tax credits if the process is not adequately regulated, as the requirement for EDA oversight has been removed.
Modifies provisions of Cultural Arts Incentives Program, New Jersey Aspire Program, and Grow New Jersey Program; eliminates Community-Anchored Development Program.
Modifies provisions of Cultural Arts Incentives Program, New Jersey Aspire Program, and Grow New Jersey Program; eliminates Community-Anchored Development Program.