A 5470 New Jersey General Assembly · 2024-2025 Regular Session

Provides allowances for certain redevelopment projects undertaken by institutions of higher education under New Jersey Aspire Program.**

This bill amends New Jersey's Aspire Program to provide special tax credit incentives for redevelopment projects undertaken by institutions of higher education. It defines "institutional projects" as those where at least 51% of square footage is dedicated to qualified research and development in priority industries like technology, biotechnology, and renewable energy. These projects qualify for tax credits covering 80% of project costs, with a maximum of $120 million, and are exempt from the standard net benefit analysis required for other redevelopment projects. The bill aims to encourage higher education institutions to develop research-focused facilities that support key economic sectors while providing targeted financial incentives.

Sub-Topics: Renewable Energy

Bill status in committee 1 of 4 stages cleared

Introduction

Mar 2025

Committee Review

Floor Vote

Governor

Introduced Mar 20, 2025 Last action Jan 12, 2026

Maddy AI version diff · 2 comparisons

What changed between versions

Reprint ACE 11/24/25 1R → Reprint AAP 1/8/26 2R · 6 edits

MODERATE

The Second Reprint removes all provisions related to 'distressed hospital projects' from the New Jersey Aspire Program, effectively eliminating that category of eligible redevelopment project. It also tightens rules for institutional (university) projects by adding a 5% lease restriction, capping tax credits at $90 million per project and $90 million total across all institutional projects combined, and setting a specific application window of April 1, 2026 to April 1, 2027.

Scope change

The bill narrows scope by eliminating distressed hospital projects as an eligible category entirely and imposes stricter limits on institutional (university) projects through lower tax credit caps, a program-wide aggregate cap, a fixed application window, and new lease restrictions.

SCOPE

All references to 'distressed hospital project' are bracketed for deletion throughout the bill, removing this entire category from eligibility for Aspire Program tax credits, exemptions from net benefit tests, rate of return evaluations, community benefits agreements, and transformative project thresholds.

ELIGIBILITY

Institutional projects now require that no more than 5% of the square footage be leased or subleased to any entity other than the institution of higher education occupying the project.

Institutional project developers may elect a five-year eligibility period combined with an additional five-year continued compliance period.

FISCAL

The per-project tax credit cap for institutional projects is lowered from $120 million (shared with government-restricted municipalities) to $90 million, and a new program-wide cap limits total tax credits for all institutional projects combined to $90 million.

TIMELINE

Developers of institutional projects must submit applications no sooner than April 1, 2026 and no later than April 1, 2027, creating a fixed application window.

REQUIREMENT

The developer capital contribution requirement for institutional projects now specifies 'whichever is greater' between 20% of total project cost and $30 million, clarifying that both thresholds apply rather than being alternatives.

Introduced Version → Reprint ACE 11/24/25 1R · 9 edits

MAJOR

The bill expands the New Jersey Aspire Program's redevelopment tax credit program to cover distressed hospitals in addition to institutions of higher education. It adds a new definition for 'distressed hospital project' (hospital systems with four or more acute care hospitals, significant charity care costs, and a parent organization in bankruptcy) and an 'institutional project' definition tied to R1/R2 research universities. New eligibility requirements include minimum developer capital contributions, minimum project cost thresholds by municipality size, affordable housing set-asides for residential projects, and a 60 percent occupancy requirement for commercial projects after year four.

Scope change

The program's scope expands from covering only redevelopment projects by institutions of higher education to also covering distressed hospital projects. This brings large bankrupt hospital systems with four or more acute care hospitals into the tax credit program, subject to specific eligibility criteria around charity care spending and bankruptcy status.

SCOPE

Distressed hospitals are now eligible for Aspire Program redevelopment tax credits alongside institutions of higher education. A 'distressed hospital project' is defined as a hospital system operating at least four general acute care hospitals, with average annual charity care costs of at least $250,000 over the five most recent calendar years, owned or leased by a 501(c)(3) organization that has filed for bankruptcy under Title 11.

DEFINITION

New definition of 'institutional project': a redevelopment project developed by or in affiliation with an R1 or R2 Carnegie Classification research university where at least 51 percent of square footage is dedicated to qualified research and development. New definition of 'qualified research and development' covers priority industries including technology, AI, software, financial services, film and digital media, advanced manufacturing, gaming, pharmaceuticals, biotechnology, transportation, logistics, and renewable energy.

The 'project cost' definition is expanded to include, for institutional projects, construction of research workspaces, meeting/classroom/dining/dormitory spaces, and common areas (hallways, utility rooms, storage, parking). For distressed hospital projects and government-restricted municipalities, land costs up to 20 percent of eligible project cost are now included.

REQUIREMENT

New subsection b in Section 57 requires developers of commercial projects to contribute at least 20 percent of total project cost as capital (or at least $30 million for institutional projects). In government-restricted municipalities the requirement drops to 10 percent. Distressed hospital projects are fully exempt from this capital contribution requirement.

New subsection c in Section 57 sets minimum total project cost thresholds for residential and health care center projects: $17.5 million in municipalities with population over 200,000; $10 million in municipalities under 200,000; and $5 million in qualified incentive tracts or government-restricted municipalities.

New subsection d in Section 57 requires that at least 20 percent of newly constructed residential units be reserved for low- and moderate-income households with affordability controls. Projects receiving federal historic rehabilitation tax credits or state Historic Property Reinvestment Act credits are exempt from bedroom distribution affordability controls.

The net benefit analysis requirement is expanded to also exclude institutional projects from the analysis, joining existing exemptions for food delivery sources, health care centers, and residential projects.

ENFORCEMENT

New subsection f in Section 57 imposes a 60 percent average occupancy requirement on commercial projects beginning in the fourth year of the eligibility period. If occupancy falls below 60 percent in any tax period, the developer forfeits all credits for that period and each subsequent period until occupancy reaches or exceeds 60 percent. This does not apply to residential projects.

ELIGIBILITY

The eligibility period (during which a developer may claim tax credits) can be elected at no more than five years for projects in government-restricted municipalities, special mission non-profit projects, or distressed hospital projects, compared to the standard maximum of 10 years.

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Full legislative history

Actions timeline

Total actions

Key actions

Committee

Jan 8, 2026

Lower · Passed

Reported out of Assembly Committee with Amendments, 2nd Reading

lower

Nov 24, 2025

Committee

Reported out of Assembly Committee with Amendments and Referred to Assembly Appropriations Committee

lower

Mar 20, 2025

Introduced

Introduced in the Assembly, Referred to Assembly Commerce, Economic Development and Agriculture Committee

lower

2 primary · 0 co-sponsors