Bill Text: NJ A2762 | 2016-2017 | Regular Session | Introduced
Bill Title: Extends eligibility to participate in Neighborhood Revitalization Tax Credit Program to areas located in municipality in which casino gaming is authorized.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2017-01-30 - Reported out of Assembly Committee, 2nd Reading [A2762 Detail]
Download: New_Jersey-2016-A2762-Introduced.html
Sponsored by:
Assemblyman VINCENT MAZZEO
District 2 (Atlantic)
SYNOPSIS
Extends eligibility to participate in Neighborhood Revitalization Tax Credit Program to areas located in municipality in which casino gaming is authorized.
CURRENT VERSION OF TEXT
As introduced.
An Act extending eligibility to participate in the Neighborhood Revitalization Tax Credit Program and amending P.L.2001, c.415.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 2 of P.L.2001, c.415 (C.52:27D-491) is amended to read as follows:
2. As used in [this act] P.L.2001, c.415 (C.52:27D-490 et seq.):
"Assistance" means the contribution of moneys to aid in the provision of neighborhood preservation and revitalization services or community services.
"Business entity" means any business firm or individual which is authorized to conduct or operate a trade or business in the State and is subject to taxes on business related income.
"Certificate for neighborhood revitalization State tax credits" means the certificate in the form prescribed by the Treasurer and issued by the commissioner to a business entity that specifies the dollar amount of neighborhood preservation and revitalization State tax credits that business entity may take as an annual credit against certain State taxes pursuant to P.L.2001, c.415 (C.52:27D-490 et seq.).
"Commissioner" means the Commissioner of Community Affairs.
"Department" means the Department of Community Affairs.
"Eligible neighborhood" means: a. a contiguous area located in a municipality in which casino gaming is authorized or in one or more municipalities that, at the time of the application to the department for approval of a neighborhood preservation and revitalization plan, are either eligible to receive aid under the "Special Municipal Aid Act," P.L.1987, c.75 (C.52:27D-118.24 et seq.) or coextensive with a school district which qualified prior to the effective date of P.L.2007, c.260 (C.18A:7F-43 et al.) for designation as an "Abbott district" pursuant to the "Comprehensive Educational Improvement and Financing Act of 1996," P.L.1996, c.138 (C.18A:7F-1 et al.); or b. an area that (1) is adjacent to a neighborhood that fulfills the requirements of subsection a. of this definition, and has received approval of a neighborhood preservation and revitalization plan pursuant to section 5 of P.L.2001, c.415 (C.52:27D-494); (2) increases the area of the adjacent eligible neighborhood by no more than 25 percent; and (3) shares similar characteristics as determined by the commissioner or the commissioner's designee.
"Housing and economic development activities" means those activities carried out in furtherance of a neighborhood preservation and revitalization plan in an eligible neighborhood approved pursuant to P.L.2001, c.415 (C.52:27D-490 et seq.), to improve the housing and economic conditions of the neighborhood; and shall include, without limitation, measures to foster the rehabilitation and construction of housing affordable to low and moderate income households within the neighborhood, including planning, design, rehabilitation, construction, and management of low and moderate income housing, home buyer counseling, and related activities needed to effectuate the rehabilitation and construction of housing affordable to low and moderate income households; measures to increase business activity within the neighborhood, including the rehabilitation and construction of commercial facilities and the provision of assistance to small business entities; and measures to increase the income and labor force participation of neighborhood residents, including provision of education, training, child care and transportation assistance to enable low income neighborhood residents to obtain or retain employment.
"Low income household" means a household whose gross household income is less than 50 percent of the median gross household income for the region in which the neighborhood is located for households of similar size as determined by the department.
"Moderate income household" means a household whose gross household income is greater than or equal to 50 percent but less than 80 percent of the median gross household income of the region in which the neighborhood is located for households of similar size as determined by the department.
"Neighborhood preservation and revitalization activities" means housing and economic development activities and other neighborhood preservation and revitalization activities.
"Neighborhood Revitalization Plan" means a plan for the preservation or revitalization of an eligible neighborhood.
"Nonprofit organization" means a private nonprofit corporation that has been determined by the Internal Revenue Service of the United States Department of the Treasury to be exempt from income taxation under 26 U.S.C.s.501(c)(3).
"Other Neighborhood Revitalization Activities" means those activities, other than housing and economic development activities, carried out in furtherance of a State-approved neighborhood preservation and revitalization plan in a qualified low and moderate income neighborhood, and may include, without limitation, improvements to infrastructure, street scape, public open space, and transportation systems; provision of social and community services, health care, crime prevention, recreation activities, community and environmental health services; and community outreach and organizing activities.
"Qualified nonprofit organization" means a nonprofit organization that has demonstrated a commitment to the neighborhood for which it is submitting a plan or project, as reflected in its past activities or proposed activities in a preservation and revitalization plan.
"Qualified project" means one or more housing and economic development activities and which may also include one or more other neighborhood revitalization activities to be carried out in accordance with a neighborhood revitalization plan as approved by the commissioner with funds provided by a business entity eligible to receive a certificate for neighborhood revitalization State tax credits.
"Similar characteristics" means comparable socioeconomic qualities as determined by the commissioner or his designee, using the smallest Census unit for which data are available.
(cf: P.L.2009, c.120, s.1)
2. This act shall take effect immediately.
STATEMENT
This bill extends eligibility to participate in the Neighborhood Revitalization State Tax Credit Program to neighborhoods located in a municipality in which casino gaming is authorized and certain adjacent areas.
Under the Neighborhood Revitalization State Tax Credit Program, business entities that invest in the revitalization of low- and moderate-income neighborhoods in eligible municipalities qualify to receive a tax credit against various State taxes. Eligible municipalities are those that receive aid under the "Special Municipal Aid Act" or are coextensive with a school district designated as an "Abbot district" pursuant to the "Comprehensive Educational Improvement and Financing Act of 1996." In 2009, the Legislature extended eligibility to areas that are adjacent to and share socioeconomic characteristics with neighborhoods that otherwise qualify to participate in the program upon approval of a neighborhood preservation and revitalization plan, provided that the plan will not increase the area of the adjacent eligible neighborhood by more than 49 percent. This bill would further extend eligibility to neighborhoods located within a municipality in which casino gaming is authorized and its adjacent areas.
The Neighborhood Revitalization Tax Credit Program is designed to foster the revitalization of areas of New Jersey's distressed cities. The program offers business entities a 100 percent tax credit against various State taxes. An entity receiving the tax credit must use 60 percent of the tax credit funds for activities related to the development of housing and increased economic activity. The entity must use the remaining balance to assist small businesses and foster the integration of mixed-income neighborhoods.
This bill would help revitalize Atlantic City and diversify the city's economy. The regional competition in casino gaming has had a deleterious effect on Atlantic City, shuttering businesses, increasing unemployment, and straining Atlantic City's municipal budget. This bill will improve the unique recreational experience Atlantic City provides while combating poverty and unemployment through the promotion of economic development in the city's low- and moderate-income neighborhoods.
