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Cultural Arts Facilities Expansion Program – CAFE

We are currently focused on reviewing applications from Round 1 to ensure a fair evaluation process. Once these reviews are complete, we will contact applicants directly with any necessary next steps and proceed to reviewing applications from Round 2.

In exciting news, Governor Murphy has signed new legislation aimed at enhancing the CAFE Program. You can view the legislation here which includes changing the program from a competitive to a rolling application, expanding the eligibility, and easing Work First NJ program requirements.

A decision on reopening CAFE applications will be made after assessing the outcomes of both Round 1 and Round 2. 

Thank you for your understanding and patience as we work through this process.

The Cultural Arts Facilities Expansion (CAFE) Program provides tax credits to incentivize broad scale capital projects for arts and cultural venues in New Jersey. The CAFE program focuses on development and rehabilitation of cultural arts facilities as a key component of the state’s economy.

AMOUNT

The CAFE Program awards tax credits via a competitive application process up to 100% of eligible project costs.

Minimum project size is $5 Million.

Maximum award is $75 Million.

GOALS

The CAFE Program aims to:

– Elevate arts and culture as a key sector within the state’s economy.

– Attract visitors to the state and local communities.

– Increase the number of first-rate art and cultural experiences for residents and visitors.

– Promote equitable engagement with the arts for underrepresented groups and underserved communities.

The tax credits are transferable and can be sold.

ELIGIBILITY

To be eligible for this program, the applicant must be a cultural arts institution which will have ownership or lease space in the cultural arts facility, and will operate the facility. In addition, the project must also be open to the public.

Cultural arts institution may include government entities, not-for-profits whose primary mission is arts and culture, or a for-profit business receiving a federal or state rehabilitation tax credit.

Projects where construction has commenced prior to submitting an application are not eligible, unless the Authority determines (clarified in NJEDA Board Memo May 13, 2025) that the cultural arts project would not be completed without an award of tax credits under the program.

APPLICATION DETAILS

The application period is currently closed.

ELIGIBLE APPLICANTS

To receive a tax credit through the Cultural Arts Facilities Expansion Program, a project must meet the following criteria:

  • Minimum project size is $5,000,000.
  • Applicant must be a cultural arts institution, which will have ownership or lease space in the cultural arts project and will operate the facility for at least 5 years after its construction.
  • The project must be a cultural arts project, and the facility must be open to the public.
  • The applicant must demonstrate that a project financing gap exists.
  • The applicant must have a letter of support for the project from the chief executive (i.e., Mayor) or governing body (i.e., City Council) of the municipality(s) where the project is located.
  • Construction must not begin before application submission unless the work was ordered by a building code or other official with jurisdiction over the site of the cultural arts project to correct a health, safety, or other hazard, or the Authority determines that the cultural arts project would not be completed without an award of tax credits under the Program as detailed in NJEDA Board Memo May 13, 2025. Demolition and environmental remediation activities are allowed prior to application although this type of work will not be considered an eligible cost if performed prior to application submission.
  • Project must include at least 20% equity in the project, or 10% for projects in the government-restricted municipalities (GRMs) defined as Atlantic City, Paterson, and Trenton.
  • Projects must comply with minimum environmental and sustainability standards (aka green building standards).
  • All construction and building services workers must be paid prevailing wages.
  • The applicant must partner with an organization(s) that supports Work First New Jersey recipients.
  • The project must be completed (obtain a temporary certificate of occupancy) within four years of executing the tax credit agreement.
  • The project must achieve a minimum score as outlined in the CAFE Program scoring criteria.

Please be advised: New Jersey State law prohibits most cannabis license and certification holders from receiving or continuing to receive an economic incentive from the NJEDA. If the applicant, or any person who controls the applicant or owns or controls more than one percent of the stock of the applicant, has applied for or received a license or a certification from the New Jersey Cannabis Regulatory Commission (NJ-CRC), the applicant is ineligible for this program and should not proceed with an application. If an application is received from an applicant that meets these criteria the application will be declined, and the application fee will not be refunded.

AWARD SIZE

The CAFE Program awards tax credits via a competitive application process up to 100% of eligible project costs.

Minimum project size: $5 Million

Maximum grant award request: $75 Million

FEES

Fees are determined on a tiered basis for projects with a total project cost of less than $20 million, and those with a total project cost of $20 million and more.

Total Project Cost

<$20MM

> $20MM

Application Fee

$5,000

$10,000

Approval Fee

$15,000

$30,000

Issuance Fee / Certification Fee

$25,000

$50,000

Annual Servicing Fee

$10,000

$25,000

Transfer/Assignment Fee

$5,000

$7,500

Minor Modification

$2,500

$5,000

Major Modification

$5,000

$10,000

6-Month Extensions (post-agreement)

$2,500

$5,000

Termination Fee

$5,000

$10,000

Third Party Review

TBD

TBD

The Authority may procure third-party consultants to review and evaluate an application, including, but not limited to, determining a project’s likelihood of success and whether a project financing gap exists. The Authority will assess the cost of these reviews to the applicant. A cultural arts institution is required to pay to the Authority the full amount of the direct costs of an analysis concerning the cultural arts institution’s application for tax credits that a third party retained by the Authority performs, if the Authority deems such retention to be necessary. All fees are non-refundable.

CAFE Mapping tool

The NJEDA has provided this mapping tool to assist potential applicants with identifying geographic areas with lower equity requirements (Government Restricted Municipalities), as well as, identifying qualifying geographic factors that may be evaluated for scoring applications.

CLICK HERE FOR THE MAPPING TOOL

“Cultural arts project” or “project” means a capital project for the construction or improvement of a cultural arts institution facility that is located in the State for which a cultural arts institution is to be awarded tax credits by the authority under the program pursuant to a tax credit agreement, provided that the project for which the tax credits are awarded will result in a capital investment of at least $5 million.

“Cultural arts institution” or “applicant” means an entity which has the primary mission and specific goal of cultural, arts and cultural education, or artistic enrichment of the people of this State and is one of the following: (1) governmental entity (2) nonprofit (3) governmental economic or community development entity that is incorporated pursuant to Title 15 of the Revised Statutes or Title 15A of the New Jersey Statutes, operating on a not-for-profit basis. A “cultural arts institution” shall also include a for-profit business seeking a tax credit for a cultural arts institution facility that is open to the public provided that the cultural arts institution facility is receiving a federal historic rehabilitation tax credit, pursuant to the federal Internal Revenue Code of 1986, 26 U.S.C. § 47, or a tax credit pursuant to the “Historic Property Reinvestment Act,” N.J.S.A. 34:1B-270 through -276.

“Cultural arts institution facility” means an existing or proposed cultural arts facility within this State, operated and maintained by a cultural arts institution and that is open to the public. A “cultural arts institution facility” includes, without limitation, an aquarium, botanical society, historical society, library, museum, gallery, performing arts center, arts-based community centers, or any related facility that is principally for the support and benefit of any of the foregoing. The term “cultural arts institution facility” shall not include facilities predominately used for athletics, recreation, and non-arts based community centers.