S 4027 New Jersey Senate · 2024-2025 Regular Session

Requires State to purchase certain unused tax credits issued under New Jersey Economic Recovery Act of 2020.

This bill requires New Jersey's Division of Taxation to purchase unused tax credits from two specific programs: the New Jersey Aspire Program (for economic development) and the Cultural Arts Incentives Program. The state must pay 85% of the credit's value, provided the tax credit certificate was issued at least one year before the purchase application. It directly affects developers and businesses holding unused credits under these programs who wish to sell them to the state. The bill changes prior law, which allowed but did not require such purchases, making it mandatory for these two programs.

Issues: ✓ Budget & Taxes

Sub-Topics: Tax Credits

Bill status in committee 1 of 4 stages cleared

Introduction

Jan 2025

Committee Review

Floor Vote

Governor

Introduced Jan 14, 2025 Last action Jun 30, 2025

Maddy AI version diff · 1 comparison

What changed between versions

Introduced Version → Reprint SBA 3/17/25 1R · 4 edits

MODERATE

The Senate Budget and Appropriations Committee restructured the amendment to Section 89 of P.L.2020, c.156 to make explicit which tax credit programs require mandatory state purchase (Aspire and Cultural Arts) versus those where purchase is discretionary (all other listed programs). The committee also clarified the general 75 percent payment cap with specific 85 percent exceptions for Aspire and Cultural Arts credits, and added a full list of all 13 eligible programs in a new subsection. A co-sponsor (Senator Wimberly) was added.

Scope change

The bill's scope was clarified rather than expanded: it now explicitly frames the mandatory purchase obligation for Aspire and Cultural Arts credits within the full context of Section 89, which covers 13 programs total. The discretionary programs are now listed alongside the mandatory ones, making the distinction between 'may' and 'shall' purchase obligations transparent.

REQUIREMENT

The amendment now explicitly distinguishes between mandatory purchase (shall) for the New Jersey Aspire Program and Cultural Arts Incentives Program, and discretionary purchase (may) for all other listed programs. The original introduced version only addressed the two mandatory programs without this contrast.

SCOPE

A new subsection b was added listing all 13 economic development programs under which the director may or shall purchase tax credits, including Historic Property Reinvestment, Brownfield Redevelopment, Innovation Evergreen, Food Desert Relief, Community-Anchored Development, Aspire, Emerge, Grow New Jersey, and others.

FISCAL

The 75 percent cap on consideration paid by the director is now stated as the general rule in subsection a, with explicit exceptions: 85 percent for Aspire credits (with conditions about issuance date and a 50 percent excess return penalty after year six) and 85 percent for Cultural Arts credits (with a one-year issuance date condition).

TECHNICAL

Senator Wimberly was added as co-sponsor, and the cross-reference for the new section points to P.L.2025, c.2, s.9 instead of the original P.L.2020, c.156, s.89 reference.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Mar 17, 2025

Upper · Passed

Reported out of Senate Committee with Amendments, 2nd Reading

upper

Jan 14, 2025

Introduced

Introduced in the Senate, Referred to Senate Budget and Appropriations Committee

upper

2 primary · 1 co-sponsor