TRENTON – The Senate Community and Urban Affairs Committee advanced legislation sponsored by Senators Troy Singleton and Angela McKnight that would significantly expand the Neighborhood Revitalization Tax Credit (NRTC) Program, increasing the annual cap on tax credits from $15 million to $65 million.

The bill, S-1799, would increase the total amount of tax credits that may be certified each fiscal year for qualified neighborhood revitalization projects approved by the Department of Community Affairs.

“The Neighborhood Revitalization Tax Credit Program has a proven track record of transforming communities and leveraging private investment in neighborhoods that need it most,” said Senator Troy Singleton (D-Burlington), Chair of the Senate Community and Urban Affairs Committee. “By raising the annual cap, we are giving community-based nonprofits the tools they need to scale up housing, economic development, and quality-of-life improvements in low- and moderate-income neighborhoods across New Jersey.”

Under current law, the NRTC program authorizes up to $15 million in tax credits annually. The legislation would increase that cap to $65 million. It would also allow any unused tax credit capacity from one fiscal year to be carried forward and added to the following year’s total, ensuring that available resources are fully utilized.

The NRTC program provides 100 percent state tax credits to business entities that contribute to approved revitalization plans led by nonprofit organizations. Sixty percent of funds must be used for housing and economic development activities. The remaining funds may support complementary initiatives, such as small-business assistance, job training, social services, crime prevention, recreation, and community outreach. The maximum tax credit per approved project is $1 million.

“For more than two decades, this program has fostered public-private partnerships that directly invest in neighborhoods,” said Senator McKnight (D-Hudson). “Expanding the credit will allow more communities to participate, attract additional corporate partners, and accelerate projects that create affordable housing, support small businesses, and strengthen local economies.”

In 2024, the Department of Community Affairs awarded $14.8 million in NRTC funding to 21 nonprofit organizations across New Jersey, supporting projects in communities like Asbury Park, Atlantic City, Camden, Elizabeth, New Brunswick, Newark, Orange, Paterson, Perth Amboy, Phillipsburg, Salem City, and Trenton, just to name a few. These projects included affordable housing construction and rehabilitation, commercial corridor revitalization, small business development, workforce training, and neighborhood improvement initiatives. By increasing the annual cap to $65 million, the legislation aims to unlock significantly more private investment to meet growing community needs, particularly as demand for affordable housing and neighborhood revitalization continues to rise.

Original Article