New Jersey’s arts sector is about to get a boost. On Thursday New Jersey Economic Development Authority (NJEDA) Board approved the Cultural and Arts Facilities Expansion (CAFE) Program. The program aims to increase cultural arts activities across the state, attract visitors, boost engagement with the arts in underserved communities and revitalize downtowns.
NJEDA Chief Executive Officer Tim Sullivan was thrilled.
“Arts and culture serve as a cornerstone of New Jersey’s economy, contributing billions of dollars in economic activity each year while showcasing the incredible diversity, creativity, and talent of our residents,” he said. “Under Governor Phil Murphy’s leadership, New Jersey continues to provide innovative tools and resources to further position arts and culture as a key driver of economic growth. The CAFE Program will help address the economic challenges the industry has faced since the pandemic by fostering new cultural hubs and bringing dynamic arts experiences to communities across the state.”
New Jersey’s arts and culture sector was a $27.3 billion industry in 2022, representing over 138,000 jobs. The combined impact of arts and culture industries account for 3.62 percent of New Jersey’s gross domestic product, as well as 3.2 percent of the state’s workforce. In 2022, the impact of New Jersey’s non-profit arts industry resulted in $116.9 million in total tax revenue to federal, state, and local governments.
The CAFE Program will provide tax credits through a competitive process to cultural arts institutions to build or renovate facilities, including aquariums, historical societies, libraries, galleries, museums, performing arts centers, or other eligible cultural or arts facilities. Eligible awardees receive tax credits covering 100 percent of eligible project costs, up to $75 million.
Eligible applicants include government entities and not-for-profits whose primary mission is arts and culture, or a for-profit business receiving a federal or state historic preservation rehabilitation tax credit. Applicants are required to contribute 10 percent or 20 percent equity to the project, depending on the project location.
A qualifying project must have a minimum of $5 million in eligible project costs. The requirements for a cultural arts facility vary based on its type. It must either be open to the public for an average of at least 20 hours per week or host an average of at least four events or educational offerings per month. Facilities primarily used for athletics, recreation, and non-arts based community centers are not eligible for the program.
Applications for the first round of the CAFE Program are expected to open in Spring 2025. For more information and a complete list of eligibility requirements, click here.
