The Brownfield Redevelopment Initiative
You may recall us reporting that on November 13, 2020, the New Jersey Economic Development Authority’s (NJEDA) Board of Directors approved the Brownfields Loan Program. This made low-interest loans of up to $5 million available for revitalization projects. Need a refresh? Click here
On February 8, 2021, Governor Phil Murphy announced the Brownfield Redevelopment Initiative. This will provide a one-time tax credit to developers the year they complete a remediation project.
According to the governor, “The tax credit will support costs associated with assessment, investigation, and remediation activities, as well as hazardous materials abatement, waste disposal, and structural remediation. The program is subject to a $50 million annual cap with a maximum $4 million tax credit per project. Tax credits will be awarded through a competitive application process.”
Why Add This?
This is important because, as Governor Murphy’s press release explained, “historically, remediation has been a major barrier to successful brownfield redevelopment projects because of the lack of funding sources available to support site assessment, planning, and cleanup. The Brownfield Redevelopment Incentive and Brownfields Loan Program aim to address this challenge by filling in these funding gaps.”
“Transforming brownfields into productive properties is one of the more potent aspects of the incentive program,” said Senate President Steve Sweeney. “Changing contaminated land into job-producing projects has environmental, economic, and social justice benefits.”
“Ensuring that brownfields are converted from dangerous tracts of lands into safe and productive properties that create jobs and improve our environment was a pivotal component of the incentive program,” said Assembly Speaker Craig Coughlin.
Brownfield Program Today
This is of course in addition to the Brownfields Loan Program, which offers low-interest financing of $100,000 to $5 million for all aspects of brownfields revitalization projects. Specifically, this includes assessment, investigation, and demolition. Applications for the Brownfields Loan Program are now open, more information about the program can be found here .
The NJEDA will release more details on the specifics and application later this year; however, you can visit here today to learn more.