The bill passed both legislative houses last week and now awaits Gov. Chris Christie's signature
TRENTON -- A bill that would raise the cap on the amount of tax credits available to developers of residential projects another $165 million and earmark $25 million in credits to the capital city has been sent to the governor's desk.
The bill (A4703) passed both legislative houses last week and now awaits Gov. Chris Christie's signature.
Under the measure, the cap on tax credits that the state Economic Development Authority may award under the Economic Redevelopment and Growth Grant program to developers of qualified residential projects and mixed-use parking projects would increase from $600 million to $765 million -- a move that would reopen the application process to more redevelopment projects.
An amendment proposed by Assemblywoman Elizabeth Muoio (D-Mercer) includes $25 million of additional Garden State Growth Zone credits for Trenton.
"The ERG tax credit program has proven to be an effective incentive for qualified developers to secure financing for their projects," Muoio said. "I felt it was imperative to ensure that developers committed to investing in Trenton continue to have access to this essential tool."
Trenton Mayor Eric Jackson said he is hopeful of the bill's passage and said it would help stimulate development in the city.
"For urban areas like Trenton that are seeking to attract private investment, the use of tax credits to help developers finance multimillion-dollar projects is paramount to making them viable and complete," he said.
A recent example is the redevelopment of the former Roebling Steel factory buildings, which can now move forward after it was awarded a residential ERG of up to $16.1 million over 10 years.
Cristina Rojas may be reached at crojas@njadvancemedia.com. Follow her on Twitter @CristinaRojasTT. Find The Times of Trenton on Facebook.