Bill Text: NJ A5709 | 2026-2027 | Regular Session | Introduced
Bill Title: Expands eligibility for "Cultural Arts Incentives Program" to include certain convention centers.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced) 2026-10-22 - Introduced, Referred to Assembly Tourism, Gaming and the Arts Committee [A5709 Detail]
Download: New_Jersey-2026-A5709-Introduced.html
Sponsored by:
Assemblywoman MAUREEN ROWAN
District 2 (Atlantic)
SYNOPSIS
Expands eligibility for "Cultural Arts Incentives Program" to include certain convention centers.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the "Cultural Arts Incentives Program" and amending P.L.2023, c.197.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 3 of P.L.2023, c.197 (C.34:1B-385) is amended to read as follows:
3. As used in P.L.2023, c.197 (C.34:1B-383 et al.):
"Affiliate" means an entity that directly or indirectly controls, is under common control with, or is controlled by a cultural arts institution. Control exists in all cases in which the entity is a member of a controlled group of corporations as defined pursuant to section 1563 of the federal Internal Revenue Code (26 U.S.C. s.1563) or the entity is an organization in a group of organizations under common control that is subject to the regulations applicable to organizations pursuant to subsection (b) or (c) of section 414 of the federal Internal Revenue Code (26 U.S.C. s.414). A cultural arts institution may establish by clear and convincing evidence, as determined by the authority, that control exists in situations involving lesser percentages of ownership if the cultural arts institution shall have control, at a minimum, of all aspects of compliance with this program. An affiliate of a cultural arts institution may contribute to the project cost and may satisfy the requirement for site control during construction and the eligibility period, but in no event shall the tax credit certificate be issued to any affiliate.
"Authority" means the New Jersey Economic Development Authority established by section 4 of P.L.1974, c.80 (C.34:1B-4).
"Board" means the board of the New Jersey Economic Development Authority, established by section 4 of P.L.1974, c.80 (C.34:1B-4).
"Convention center" means a facility that contains at least 400,000 square feet of space utilized to house conventions, conferences, trade shows, expositions, or similar events, and that is located within a municipality that, on the effective date of P.L. , c. (pending before the Legislature as this bill), is subject to financial restrictions imposed pursuant to the "Municipal Stabilization and Recovery Act," P.L.2016, c.4 (C.52:27BBBB-1 et seq.).
"Cultural arts institution" means a governmental entity or nonprofit or governmental economic or community development entity incorporated pursuant to Title 15 of the Revised Statutes or Title 15A of the New Jersey Statutes, operating on a not-for-profit basis, and having a mission of, or experience in, cultural, educational, or artistic enrichment of the people of this State, including, but not limited to, the hosting of conventions, conferences, trade shows, and exhibitions. A "cultural arts institution" shall include a for-profit business seeking a tax credit for a cultural arts institution facility open to the public provided that the cultural arts institution facility is receiving a federal historic rehabilitation tax credit pursuant to section 47 of the federal Internal Revenue Code of 1986, 26 U.S.C. s.47, or a tax credit pursuant to the "Historic Property Reinvestment Act," sections 2 through 8 of P.L.2020, c.156 (C.34:1B-270 through C.34:1B-276). A "cultural arts institution" shall include any nonprofit that operates a museum or memorial honoring New Jersey veterans of foreign military conflicts. A "cultural arts institution" shall also include a developer that has a partnership agreement with the National Park Service.
"Cultural arts institution facility" means an existing or proposed facility within this State, operated and maintained by a cultural arts institution or the National Park Service. A "cultural arts institution facility" includes, without limitation, an aquarium, botanical society, historical society, library, museum, gallery, performing arts center, national historical park, war memorial or museum, convention center, or any related facility that is principally for the support and benefit of any of the foregoing.
"Cultural arts 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 $5,000,000.
"Director" means the Director of the Division of Taxation in the Department of the Treasury.
"Eligibility period" means the period during which a cultural arts institution may claim, sell, transfer, or otherwise use a tax credit under the program, beginning with the tax period in which the authority accepts certification of the cultural arts institution that it has met the capital investment requirements of the program and extending thereafter for a term of at least five years.
"Eligible position" means a full-time position in an entity in this State which the entity has filled with a full-time employee. An eligible position shall not include an independent contractor or a consultant.
"Government-restricted municipality" means a municipality in this State with a municipal revitalization index distress score of at least 75, that met the criteria for designation as an urban aid municipality in the 2019 State fiscal year, and that, on the effective date of P.L.2020, c.156, is subject to financial restrictions imposed pursuant to the "Municipal Stabilization and Recovery Act," P.L.2016, c.4 (C.52:27BBBB-1 et seq.), or is restricted in its ability to levy property taxes on property in that municipality as a result of the State of New Jersey owning or controlling property representing at least 25 percent of the total land area of the municipality or as a result of the federal government of the United States owning or controlling at least 50 acres of the total land area of the municipality, which is dedicated as a national natural landmark.
"New full-time job" means an eligible position created by a cultural arts institution at a cultural arts project that did not previously exist in this State. For the purposes of determining the number of new full-time jobs, the eligible positions of an affiliate shall be considered eligible positions of the cultural arts institution.
"Program" means the Cultural Arts Incentives Program established pursuant to section 4 of P.L.2023, c.197 (C.34:1B-386).
"Project cost" means the costs incurred in connection with a cultural arts project by a cultural arts institution until the issuance of a permanent certificate of occupancy, or until such other time specified by the authority, for a specific investment or improvement, including the costs relating to lands, buildings, improvements, real or personal property, or any interest therein, including leases discounted to present value, including lands under water, riparian rights, space rights, and air rights acquired, owned, developed or redeveloped, constructed, reconstructed, rehabilitated, or improved, any environmental remediation costs, plus costs not directly related to construction, including capitalized interest paid to third parties, of an amount not to exceed 20 percent of the total costs, and the cost of infrastructure improvements, including ancillary infrastructure projects. The fees associated with the application or administration of tax credits under P.L.2023, c.197 (C.34:1B-383 et al.) shall not constitute a project cost.
"Project financing gap" means the part of the total project cost, including reasonable and appropriate return on investment, that remains to be financed after all other sources of capital have been accounted for, including, but not limited to capital contributed by the cultural arts institution, which shall not be less than 20 percent of the total project cost, and investor or financial entity capital or loans; provided, however, that for a cultural arts project located in a government-restricted municipality, the capital contributed by the cultural arts institution shall not be less than 10 percent of the total project cost.
"Qualified incentive tract" means a population census tract having a poverty rate of 20 percent or more or a census tract in which the median family income for the census tract does not exceed 80 percent of the greater of the statewide median family income or the median family income of the metropolitan statistical area in which the census tract is situated.
"Tax credit
agreement" means a tax credit agreement entered into pursuant to section 8
of P.L.2023, c.197 (C.34:1B-390) between the authority and a cultural arts
institution.
"Work First New Jersey program" means the Work First New Jersey program established pursuant to P.L.1997, c.38 (C.44:10-55 et seq.).
(cf: P.L.2025, c.127, s.2)
2. Section 7 of P.L.2023, c.197 (C.34:1B-389) is amended to read as follows:
7. a. The authority shall conduct a review of applications on a rolling basis [, unless the authority determines that demand is likely to exceed available tax credits, at which time the authority may implement a competitive application process whereby the authority shall evaluate all applications submitted by a date certain as if all were submitted on that date].
b. To receive a tax credit award, a cultural arts institution shall be required to meet a minimum score, as determined by the authority pursuant to this section.
c. The scoring system developed by the authority pursuant to this section shall assess applications for tax credits based on criteria, which shall include, but shall not be limited to:
(1) the amount of tax credits requested by the cultural arts institution compared to the amount of tax credits required for the completion of the cultural arts project;
(2) how the cultural arts project will advance State, regional, and local goals concerning the development of arts and cultural facilities in underserved communities;
(3) the relationship of the cultural arts project to a comprehensive local development strategy, including its relation to other development and redevelopment projects in the municipality;
(4) the degree to which the cultural arts project enhances and promotes job creation and economic development;
(5) the extent of economic and related social distress in the municipality and the immediate area surrounding the cultural arts project, including whether the cultural arts project is located in a qualified incentive tract or other areas of the State identified from time to time by the authority in rules;
(6) the quality and number of new full-time jobs that will be created by the cultural arts institution; and
(7) if the cultural arts institution has a board of directors, the extent to which that board of directors is diverse and representative of the community in which the cultural arts project is located.
d. Notwithstanding the provisions of subsection c. of this section, the authority may adopt, pursuant to the provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations adjusting the criteria required under the program when necessary to respond to conditions in the State.
e. Prior to the award of a tax credit, the authority shall confirm with the Department of Labor and Workforce Development, the Department of Environmental Protection, and the Department of the Treasury that the cultural arts institution is in substantial good standing with the respective department, or has entered into an agreement with the respective department that includes a practical corrective action plan for the cultural arts institution and the cultural arts institution shall confirm that any contractors and subcontractors performing work at the cultural arts project: (1) are registered as required by "The Public Works Contractor Registration Act," P.L.1999, c.238 (C.34:11-56.48 et seq.); (2) have not been debarred by the Department of Labor and Workforce Development from engaging in or bidding on Public Works Contracts in the State; and (3) possess a tax clearance certificate issued by the Division of Taxation in the Department of the Treasury. Provided that all parties are in compliance with this subsection, the authority shall allocate tax credits to cultural arts projects according to the cultural arts projects' scores and until either the available tax credits are exhausted or all cultural arts projects obtaining the minimum score receive a tax credit, whichever occurs first. If insufficient funding exists to fully fund all eligible cultural arts projects, a cultural arts project may be offered a partial tax credit valued at less than what is provided for in paragraph (1) of subsection b. of section 4 of P.L.2023, c.197 (C.34:1B-386).
f. Applications that do not receive the minimum score established by the authority shall not receive further consideration for a tax credit by the authority for that application; however, a cultural arts institution may submit a new application.
g. (Deleted by amendment, P.L.2025, c.127)
(cf: P.L.2025, c.127, s.5)
3. Section 11 of P.L.2023, c.197 (C.34:1B-393) is amended to read as follows:
11. a. Notwithstanding the provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) to the contrary, the chief executive officer of the authority shall, in consultation with the New Jersey State Council on the Arts, adopt, immediately upon filing with the Office of Administrative Law, such rules and regulations as the chief executive officer deems necessary to implement the provisions of P.L.2023, c.197 (C.34:1B-383 et al.), which rules and regulations shall be effective for a period not to exceed 365 days after the date of the filing. Before the expiration of the rules and regulations, the chief executive officer, in consultation with the New Jersey State Council on the Arts, shall amend, adopt, or readopt the rules and regulations in accordance with the requirements of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.).
b. Notwithstanding the provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) to the contrary, the chief executive officer of the authority shall, in consultation with the New Jersey State Council on the Arts, adopt, immediately upon filing with the Office of Administrative Law, such rules and regulations as the chief executive officer deems necessary to implement the provisions of P.L.2025, c.127, which rules and regulations shall be effective for a period not to exceed 365 days after the date of the filing. Before the expiration of the rules and regulations, the chief executive officer, in consultation with the New Jersey State Council on the Arts, shall amend, adopt, or readopt the rules and regulations in accordance with the requirements of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.).
c. Notwithstanding the provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) to the contrary, the chief executive officer of the authority shall adopt, immediately upon filing with the Office of Administrative Law, such rules and regulations as the chief executive officer deems necessary to implement the provisions of P.L. , c. (pending before the Legislature as this bill), which rules and regulations shall be effective for a period not to exceed 365 days after the date of the filing. Before the expiration of the rules and regulations, the chief executive officer, in consultation with the New Jersey State Council on the Arts, shall amend, adopt, or readopt the rules and regulations in accordance with the requirements of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.).
(cf: P.L.2025, c.127, s.9)
4. This act shall take effect immediately.
STATEMENT
This bill expands the "Cultural Arts Incentives Program" to include certain convention centers as a type of cultural arts institution facility for which a tax credit may be awarded.
Under the Cultural Arts Incentives Program, also known as the Cultural Arts Facilities Expansion Program, the New Jersey Economic Development Authority (EDA) may award tax credits to cultural arts institutions to incentivize the establishment or redevelopment of a cultural arts institution facility.
The bill amends the definition of a "cultural arts institution facility" to include convention centers. Specifically, the bill defines "convention center" as a facility that contains at least 400,000 square feet of space utilized to house conventions, conferences, trade shows, expositions, or similar events, and that is located within a municipality subject to the "Municipal Stabilization and Recovery Act." As defined, this specifically includes the Atlantic City Convention Center. The bill also amends the definition of "cultural arts institution" to specify that the mission of such institution may include the hosting of conventions, conferences, trade shows, and exhibitions.
Under current law, applications for the program are to be reviewed on a rolling basis, unless the EDA determines that demand is likely to exceed available tax credits, at which time the EDA may implement a competitive application process. The bill amends existing law to require all applications to be reviewed on a rolling basis, regardless of the anticipated demand for the program.
