By Joshua Burd
The state Economic Development Authority has released new details of a $300 million tax credit program designed to compensate developers in connection with projects that clean up and redevelop brownfield sites.
In an announcement last week, the agency said the Brownfields Redevelopment Incentive Program covers specific costs associated with such projects — including the investigation and remediation of environmental contamination, as well as building and structural remediation activities — with a focus on cleanups that support community development. Awards of up to 50 percent of remediation costs are available for eligible brownfield sites, up to a maximum of $4 million, while sites in a designated Government Restricted Municipality or Qualified Incentive Tract may be eligible for up to 60 percent of rehabilitation costs, with a maximum of $8 million.
The EDA is now seeking public feedback for the program, which can provide $300 million in tax credits over six years. The subsidy was among those established by the New Jersey Economic Recovery Act of 2020.
“The Brownfields Redevelopment Incentive is part of a suite of programs created under the ERA that sets a high bar for equitable and inclusive development,” authority CEO Tim Sullivan said. “Input from community stakeholders will help to ensure the BRI advances Governor Phil Murphy’s and the New Jersey State Legislature’s vision for incentivizing projects that turn vacant and contaminated sites into vibrant economic assets, with a continued focused on community development.”
In a news release, the EDA said members of the public are encouraged to review the preliminary information and submit written feedback through an online form available on the Economic Recovery Act website. The authority will also be hosting two listening sessions for public input on the proposed information, at 2 PM Sept. 7 and 1 PM Sept. 8.
Additionally, the EDA said it will partner with the state Department of Environmental Protection to create evaluation criteria for a competitive application process. To receive tax credits through the program, the developer must demonstrate that a financing gap exists, while parties that are in any way responsible or liable for the site contamination are not eligible for the program.
Tax credits will be awarded through a competitive application process, the EDA said.
