The New Jersey Economic Development Authority released information on the Brownfields Redevelopment Incentive Program — a $300 million tax credit program designed to compensate developers of redevelopment projects located on brownfield sites for remediation costs — for public feedback.
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 NJEDA will also be hosting two listening sessions for public input on the proposed information.
“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,” NJEDA CEO Tim Sullivan stated. “Input from community stakeholders will help to ensure the BRI advances Gov. 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 focus on community development.”
The BRI covers specific costs associated with brownfield remediation and redevelopment, including the investigation and remediation of environmental contamination, as well as building and structural remediation activities. Awards of up to 50% of remediation costs are available for eligible brownfield sites, up to a maximum of $4 million. Brownfield sites in a Government Restricted Municipality or Qualified Incentive Tract may be eligible for up to 60% of rehabilitation costs, up to a maximum of $8 million. Awards are scored on a competitive basis.
Tax credits will be awarded through a competitive application process to ensure the best projects receive state support. The NJEDA will partner with the 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. Parties that are in any way responsible or liable for the site contamination are not eligible for the program.