(TRENTON) – Legislation Assembly Majority Conference Leader Shavonda Sumter and Assemblyman Benjie Wimberly (both D-Bergen, Passaic) to spur economic growth in the City of Paterson by dedicating $105 million in tax credits to qualified projects in the city was signed into law on Monday.
“This is a win for the city of Paterson,” said Sumter. “The new law will provide the much-needed infusion of funds for many economic development projects the city needs to move forward for its residents.”
“Moving forward on critical economic development projects will mean more jobs for residents and improvements for the city,” said Wimberly. “This is great news for the city of Paterson, its residents and all New Jerseyans who work or live near the city.”
The new law, formerly bill A-4501, will increase the amount of tax credits that the Economic Development Authority is permitted to award under the Economic Redevelopment and Growth Grant (ERGG) Residential Tax Credit program from $718 million to $823 million. The new law also restricts the additional $105 million in tax credits to qualified residential projects and mixed use parking projects located in a Garden State Growth Zone in Paterson, defined as a city having a population in excess of 125,000.
Under previous law, the authority is permitted to award ERG program tax credits to developers for a percentage of total project costs that are incurred in connection with certain qualified residential projects, projects involving university infrastructure, and mixed use parking projects. The law also limited the overall value of all tax credits that can be awarded to developers for these projects to not more than $718 million over the life of the program, and allocated certain portions of the authorized tax credits to specific geographic regions and categories of eligible projects.
The new law will take effect immediately.
The Assembly approved the legislation, 41-27, on February 15 and the Senate, 31-3, on January 23.