NJEDA Board Approves Creation of Brownfields Redevelopment Incentive Program
Program Supports Remediation Cost to Promote Redevelopment of Brownfields Sites
TRENTON, N.J. (October 13, 2022) – The New Jersey Economic Development Authority (NJEDA) Board approved the creation of a competitive Brownfields Redevelopment Incentive (BRI) Program. The BRI Program, which will provide a total of $300 million in incentive funding over six years, is designed to support remediation costs and incentivize developers of redevelopment projects to carry out cleanup activities at brownfield sites throughout the state, bringing these sites back into productive reuse as an integral part of community development.
Established by the New Jersey Economic Recovery Act of 2020 (ERA), awards of up to 50 percent of remediation costs will be available for eligible brownfield sites, up to a maximum of $4 million. In keeping with the Governor’s vision for inclusive economic growth, Brownfield sites in a Government Restricted Municipality or Qualified Incentive Tract may be eligible for up to 60 percent of rehabilitation costs, up to a maximum of $8 million. Awards are scored on a competitive basis.
“The Brownfields Redevelopment Incentive Program will allow for the redevelopment of long-vacant and abandoned properties, helping to foster economic development throughout the state,” said Governor Phil Murphy. “This program will open the door for new developments that will bring jobs and improve the environment in underserved communities that have been disproportionately affected by past pollution.”
Tax credits will be awarded through a competitive application process, which is set to open in upcoming months, to ensure the best projects receive State support. The NJEDA has partnered with the New Jersey 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.
“Supporting the transformation of brownfields from hazardous sites into community assets that spur economic development and job creation is vital to our efforts to advance environmental justice in New Jersey,” said New Jersey Department of Environmental Protection Commissioner Shawn LaTourette. “By taking a contaminated brownfield property and carefully remediating the site, the Brownfields Redevelopment Incentive Program will address community redevelopment in a sustainable way while supporting Governor Murphy’s efforts to improve New Jersey residents’ quality of life.”
The redevelopment of brownfield sites is an important component of smart planning that will allow New Jersey to meet its goals for economic growth. The BRI Program will help promote the redevelopment of these contaminated sites for productive reuse.
“The Brownfields Redevelopment Incentive Program can unlock vast untapped economic potential contaminated sites can have after they have been effectively rehabilitated,” said NJEDA Chief Executive Officer Tim Sullivan. “This program will be key to continuing to drive equitable community revitalization and growth across the state, achieving Governor Murphy’s vision for a stronger, greener, fairer New Jersey.”
Eligible costs include soil and groundwater investigation, site remediation, hazardous materials assessment and survey, hazardous materials or waste disposal, infrastructure remedial activities (fences, warning signs, site control, and drainage control), and building and structural issues for demolition, asbestos removal, polychlorinated biphenyls (PCB) removal, contaminated wood, or paint removal. Tax credits awarded through this program may not be used for the acquisition of the brownfield property, financing of the property, legal fees, Authority fees, and/or penalty or violation fees.
The Brownfields Redevelopment Incentive Program is part of a suite of solutions, including the Brownfields Loan Program and the Brownfields Impact Fund, designed to support development that transforms underutilized and contaminated spaces into community assets, with the goal of achieving a greener New Jersey. This includes ensuring that residents living in communities that have historically suffered from disinvestment, environmental contamination, and health disparities benefit from brownfields redevelopment.
In addition to the Brownfields Redevelopment Incentive Program, the ERA creates a suite of programs that includes tax credits to incentivize job creation, new construction, and historic property reinvestment; financial resources for small businesses; support for new supermarkets and healthy food retailers in food desert communities; new funding opportunities for early-stage companies in New Jersey; and support for the growing film and digital media industry. The NJEDA will continue to engage the public as new programs and rules are developed.
About the New Jersey Economic Development Authority
The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness. NJEDA is developing the Wind port on behalf of the State.
To learn more about NJEDA resources for businesses call NJEDA Customer Care at 844-965-1125 or visit https://www.njeda.gov and follow @NewJerseyEDA on Facebook, Twitter, Instagram, and LinkedIn.
December 7, 2023
NOTICE OF NJEDA BOARD MEETING - 12/14/2023
The New Jersey Economic Development Authority's next public Board Meeting will be held in person and via teleconference on Thursday, December 14, 2023, at 10:00 am.
December 5, 2023
NJEDA Releases Revised Film and Digital Media Tax Credit Program Rules for Public Feedback
TRENTON, N.J. (December 5, 2023) – The New Jersey Economic Development Authority (NJEDA) is seeking public input on a revised set of rules for the Film and Digital Media Tax Credit Program.
December 1, 2023
NJEDA Issues Request for Expressions of Interest for New Jersey Green Fund Financial Support
TRENTON, N.J. (December 1, 2023) –The New Jersey Economic Development Authority (NJEDA) has issued a Request for Expressions of interest (“RFEI”) to identify specific sites, projects, or assets that are interested in financial support from its planned New Jersey Green Fund (“NJGF”).