[First Reprint] ASSEMBLY, No. 4 STATE OF NEW JERSEY 219th LEGISLATURE INTRODUCED DECEMBER 16, 2020 Sponsored by: Assemblywoman ELIANA PINTOR MARIN District 29 (Essex) Assemblyman CRAIG J. COUGHLIN District 19 (Middlesex) Assemblyman LOUIS D. GREENWALD District 6 (Burlington and Camden) Assemblyman GORDON M. JOHNSON District 37 (Bergen) Assemblyman BENJIE E. WIMBERLY District 35 (Bergen and Passaic) Assemblyman NICHOLAS CHIARAVALLOTI District 31 (Hudson) Assemblywoman ANNETTE CHAPARRO District 33 (Hudson) Assemblyman ANTHONY S. VERRELLI District 15 (Hunterdon and Mercer) Assemblyman VINCENT MAZZEO District 2 (Atlantic) Assemblywoman LINDA S. CARTER District 22 (Middlesex, Somerset and Union) Assemblyman ERIC HOUGHTALING District 11 (Monmouth) Assemblyman ANDREW ZWICKER District 16 (Hunterdon, Mercer, Middlesex and Somerset) Senator M. TERESA RUIZ District 29 (Essex) Senator PAUL A. SARLO District 36 (Bergen and Passaic) Co-Sponsored by: Assemblywomen Vainieri Huttle, Downey, Speight, McKnight, Assemblyman Spearman, Senators Turner, Addiego, Madden, Greenstein and Pou SYNOPSIS "New Jersey Economic Recovery Act of 2020"; provides for administration of programs and policies related to jobs, property development, food deserts, community partnerships, small and early stage businesses, State procurement, wind energy, and film production, and makes an appropriation. CURRENT VERSION OF TEXT As reported by the Assembly Appropriations Committee on December 17, 2020, with amendments. (Sponsorship Updated As Of: 12/21/2020) A4 [1R] PINTOR MARIN, COUGHLIN 2 1 AN ACT concerning State economic development policy, and 2 amending and supplementing various parts of the statutory law, 3 and making an appropriation. 4 5 BE IT ENACTED by the Senate and General Assembly of the State 6 of New Jersey: 7 8 1. (New section) P.L. , c. (C. ) (pending before the 9 Legislature as this bill) shall be known and may be cited as the 10 "New Jersey Economic Recovery Act of 2020." 11 12 2. (New section) Sections 2 through 8 of P.L. , c. (C. ) 13 (pending before the Legislature as this bill) shall be known and may 14 be cited as the "Historic Property Reinvestment Act." 15 16 3. (New section) As used in sections 2 through 8 of P.L. , 17 c. (C. ) (pending before the Legislature as this bill): 18 "Authority" means the New Jersey Economic Development 19 Authority established pursuant to section 4 of P.L.1974, c.80 20 (C.34:1B-4). 21 "Board" means the Board of the New Jersey Economic 22 Development Authority, established pursuant to section 4 of 23 P.L.1974, c.80 (C.34:1B-4). 24 "Cost of rehabilitation" means the consideration given, valued in 25 money, whether given in money or otherwise, for the materials and 26 services which constitute the rehabilitation. 27 "Director" means the Director of the Division of Taxation in the 28 Department of the Treasury. 29 "Income producing property" means a structure or site that is 30 used in a trade or business or to produce rental income. 31 "New Jersey S corporation" means the same as the term is 32 defined in section 12 of P.L.1993, c.173 (C.54A:5-10). 33 "Officer" means the State Historic Preservation Officer or the 34 official within the State designated by the Governor or by statute in 35 accordance with the provisions of chapter 3023 of Title 54, United 36 States Code (54 U.S.C. s.302301 et seq), to act as liaison for the 37 purpose of administering historic preservation programs in the 38 State. 39 "Partnership" means an entity classified as a partnership for 40 federal income tax purposes. 41 "Project financing gap" means the part of the total cost of 42 rehabilitation, including reasonable and appropriate return on 43 investment, that remains to be financed after all other sources of 44 capital have been accounted for, including, but not limited to, EXPLANATION – Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is intended to be omitted in the law. Matter underlined thus is new matter. Matter enclosed in superscript numerals has been adopted as follows: 1Assembly AAP committee amendments adopted December 17, 2020. A4 [1R] PINTOR MARIN, COUGHLIN 3 1 developer contributed capital, which shall not be less than 20 2 percent of the total cost of rehabilitation, and investor or financial 3 entity capital or loans for which the developer, after making all 4 good faith efforts to raise additional capital, certifies that additional 5 capital cannot be raised from other sources. 6 "Property" means a structure, including its site improvements 7 and landscape features, assessed as real property, and used for: a 8 commercial purpose; a residential rental purpose, provided the 9 structure contains at least four dwelling units; or any combination 10 thereof. 11 "Qualified property" means a property located in the State of 12 New Jersey that is an income producing property, and that is: 13 (a) (i) individually listed, or located in a district listed on 14 the National Register of Historic Places in accordance with the with 15 the provisions of chapter 3021 of Title 54, United States Code (54 16 U.S.C. s.302101 et seq), or on the New Jersey Register of Historic 17 Places pursuant to P.L.1970, c.268 (C.13:1B-15.128 et seq.), or 18 individually designated, or located in a district designated, by the 19 Pinelands Commission as a historic resource of significance to the 20 Pinelands in accordance with the Pinelands comprehensive 21 management plan adopted pursuant to the "Pinelands Protection 22 Act," P.L.1979, c.111 (C.13:18A-1 et seq.), and 23 (ii) if located within a district, certified by either the officer or 24 the Pinelands Commission, as appropriate, as contributing to the 25 historic significance of the district; or 26 (b) (i) individually identified or registered, or located in a 27 district composed of properties identified or registered, for 28 protection as significant historic resources in accordance with 29 criteria established by a municipality in which the property or 30 district is located if the criteria for identification or registration has 31 been approved by the officer as suitable for substantially achieving 32 the purpose of preserving and rehabilitating buildings of historic 33 significance within the jurisdiction of the municipality, and 34 (ii) if located within a district, certified by the officer as 35 contributing to the historic significance of the district. 36 "Rehabilitation" means the repair or reconstruction of the 37 exterior or interior of a qualified property or transformative project 38 to make an efficient contemporary use possible while preserving the 39 portions or features of the property that have significant historical, 40 architectural, and cultural values. 41 "Rehabilitation of the interior of the qualified property or 42 transformative project" means the repair or reconstruction of the 43 structural or substrate components and electrical, plumbing, and 44 heating components within the interior of a qualified property or 45 transformative project. 46 "Selected rehabilitation period" means a period of 24 months if 47 the beginning of such period is chosen by the business entity during 48 which, or parts of which, a rehabilitation is occurring, or a period of A4 [1R] PINTOR MARIN, COUGHLIN 4 1 60 months if a rehabilitation is reasonably expected to be completed 2 in distinct phases set forth in written architectural plans and 3 specifications completed before or during the physical work on the 4 rehabilitation. 5 “Transformative project” means a property that is: 6 (a) an income producing property, not including a residential 7 property, whose rehabilitation the authority determines will 8 generate substantial increases in State revenues through the creation 9 of increased business activity within the surrounding area; 10 (b) individually listed on the New Jersey Register of Historic 11 Places pursuant to P.L.1970, c.268 (C.13:1B-15.128 et seq.) and 12 which, before the enactment of P.L. , c. (C. ) (pending 13 before the Legislature as this bill), received a Determination of 14 Eligibility from the Keeper of the National Register of Historic 15 Places in accordance with the provisions of Part 60 of Title 36 of 16 the Code of Federal Regulations; 17 (c) located within a one-half mile radius of the center point of a 18 transit village, as designated by the New Jersey Department of 19 Transportation; and 20 (d) located within a city of the first class, as classified under 21 N.J.S.40A:6-4. 22 23 4. (New section) a. (1) A business entity, upon successful 24 application to the New Jersey Economic Development Authority, 25 and commitment to the authority to pay each worker employed to 26 perform construction work at the qualified property or 27 transformative project a wage not less than the prevailing wage rate 28 for the worker’s craft or trade, as determined by the Commissioner 29 of Labor and Workforce Development pursuant to P.L.1963, c.150 30 (C.34:11-56.25 et seq.), shall be allowed a credit against the tax 31 otherwise due pursuant to section 5 of P.L.1945, c.162 (C.54:10A- 32 5), the tax imposed on insurers generally pursuant to P.L.1945, 33 c.132 (C.54:18A-1 et. seq.), or the tax imposed on marine insurance 34 companies pursuant to R.S.54:16-1 et. seq., for 40 percent of the 35 cost of rehabilitation paid by the business entity for the 36 rehabilitation of a qualified property or transformative project, if 37 the cost of rehabilitation during a business entity’s selected 38 rehabilitation period is not less than the greater of (1) the adjusted 39 basis of the structure of the qualified property or transformative 40 project used for federal income tax purposes as of the beginning of 41 the business entity’s selected rehabilitation period, or (2) $5,000.