Assembly Commerce, Economic Development and Agriculture Committee Statement to Assembly, No. 6306 (January 5, 2026)

Summary

A committee statement to the New Jersey Assembly, No. 6306, from the Assembly Commerce, Economic Development and Agriculture Committee, dated January 5, 2026, reporting Assembly Bill No. 6306 favorably. The bill authorizes $2.5 billion in tax credits for certain economic development purposes, including up to $300 million to support sports and entertainment projects, with applications to the New Jersey Economic Development Authority due before June 30, 2027. It allows a project to be completed in a maximum of five phases and caps a developer's total tax credit award at 80 percent of eligible project cost or $300 million, whichever is less. It also raises the maximum total of tax credits under the Aspire Program, Emerge Program, and certain other programs to $14 billion.

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ASSEMBLY COMMERCE, ECONOMIC DEVELOPMENT AND
           AGRICULTURE COMMITTEE

                          STATEMENT TO

                     ASSEMBLY, No. 6306

       STATE OF NEW JERSEY
                          DATED: JANUARY 5, 2026

          The Assembly Commerce, Economic Development and
      Agriculture Committee reports favorably Assembly Bill No. 6306.
          This bill authorizes $2.5 billion in tax credits for certain
      economic development purposes, including up to $300 million in
      tax credits to support the development of certain sports and
      entertainment projects and the remaining amount of additional tax
      credits for the New Jersey Aspire (Aspire) Program and Emerge
      Program.
         Specifically, the bill would make available up to $300 million in
      tax credits for sports and entertainment projects. Under the bill, a
      developer seeking tax credits for a sports and entertainment project,
      as that term is defined in the bill, would generally be subject to the
      same requirements and conditions as apply to redevelopment
      projects under the Aspire Program, except as otherwise specified in
      the bill.
         The bill requires a developer seeking tax credits for a sports and
      entertainment project to submit an application to the New Jersey
      Economic Development Authority (authority) before June 30, 2027.
      Under current law, the deadline to submit applications under the
      Aspire Program is March 1, 2029.
         Additionally, the bill provides that any fees imposed by the
      authority for a sports and entertainment project, including
      application fees, are required to be equal to the amount of the fees
      imposed for a transformative project under the Aspire Program.
         Under the bill, a sports and entertainment project may be
      completed in a maximum of five phases. If the project is completed
      in phases, the bill requires the developer of the project to enter into
      a sports and entertainment project phase agreement with the
      authority for each phase. The bill provides that a sports and
      entertainment project phase agreement is a sub-agreement of the
      incentive award agreement that governs the timing, capital
      investment, and other applicable details concerning each respective
      phase of a sports and entertainment project.
         Additionally, the bill provides that for a sports and entertainment
      project completed in phases, each phase is required to have a
      separate eligibility period, and the developer is required to
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contribute capital of no less than 20 percent of the project costs for
each phase. Under the bill, the developer of the project may elect a
separate eligibility period for each phase of no less than five years.
After completing each phase, the bill requires the developer to
submit a certification to the authority attesting that the phase is
completed. If the authority approves the certification, the bill
provides that the tax credit certificate allowed to the developer
would be increased by the tax credit amount corresponding to that
phase.
   However, notwithstanding the different eligibility periods for
each phase, the bill provides that all conditions and requirements
applicable during an eligibility period for any phase of the project
would apply to the entire sports and entertainment project until the
end of the eligibility period for the last phase.
   The bill also requires that a sports and entertainment project is
required to be completed, and the developer is to have completed its
expenditure of eligible project costs, within six years of executing
the incentive award agreement, except that the authority may, in its
discretion, extend this deadline by up to one additional year.
   The bill also provides that for a sports and entertainment project
completed in phases, the final phase of the sports and entertainment
project is required to be completed, and the developer is required to
have completed its expenditure of eligible project costs, within 10
years of executing the incentive award agreement or the sports and
entertainment phase agreement corresponding to the first phase of
the sports and entertainment project, whichever was executed later.
   Additionally, as required under the Aspire Program, the bill
requires the developer of a sports and entertainment project to
demonstrate a project financing gap, as that term is defined in the
bill, subject to review by the authority.
   The bill requires the authority to conduct an analysis of the
developer's project financing gap in lieu of determining whether the
developer’s actual rate of return on investment exceeds the
reasonable and appropriate rate of return on investment at the time
of board approval. The bill requires this analysis to be conducted in
the same manner as the analysis conducted under the Aspire
Program, except as otherwise provided in this bill, including the
guidelines developed by the authority under this bill.
   The bill also requires the developer of a sports and entertainment
project to undergo a State fiscal impact analysis, conducted by the
authority, to ensure that the gross economic benefit of the sports
and entertainment facility to the State over the duration of the
commitment period, as that term is defined in the bill, is at least 150
percent of the overall public assistance provided to the sports and
entertainment project. In determining the gross economic benefits
of the sports and entertainment facility, the bill requires the
authority to consider the direct and indirect benefits to the State,
                                  3

including local taxes that may benefit the State, as well as all such
benefits to the State that result from the sports and entertainment
facility over the duration of the commitment period. The authority
may include induced benefits to the State in its analysis, including
benefits derived from construction. Under the bill, the requirement
to undergo this economic benefit analysis is imposed in lieu of the
requirement for the developer of the project to undergo the net
positive benefit test, as otherwise required under the Aspire
Program.
   Additionally, under current law, the Aspire Program requires the
developer of certain projects with a project cost of at least $10
million to enter into a community benefits agreement with the
authority and the county or municipality in which the
redevelopment project is located, with certain exceptions. Instead,
this bill requires the developer of a sports and entertainment project,
without exception, to enter into a community benefits agreement
with the authority and the municipality in which the project is
located, following at least one previously advertised public hearing
held by the municipality. The bill requires the community benefits
agreement to provide for the creation of a community advisory
committee to oversee the implementation of the agreement, monitor
successes, ensure compliance with the terms of the agreement, and
produce an annual public report. Under the bill, the community
advisory committee is required to be comprised of representatives
of diverse community groups and residents of the municipality in
which the project is located.
   The bill also authorizes the authority to rescind an award or
recapture all or part of any tax credits awarded if: (1) the
community advisory committee's annual report determines that the
developer of a sports and entertainment project is not in compliance
with the terms of the community benefits agreement; or (2) the
developer of a sports and entertainment project fails to provide a
certification at the time the developer submits its annual report to
the authority, as required under the Aspire Program, under the
penalty of perjury, that it is in compliance with the terms of the
community benefits agreement.
   In addition to the requirements imposed under the Aspire
Program, the bill also requires the developer of a sports and
entertainment project to enter into a workforce development
agreement that includes the provision of opportunities for
workforce hiring, training, or apprenticeship, or other measures
determined appropriate by the authority.
   Under the bill, a workforce development agreement is defined as
a contractual relationship, as approved by the authority, over the
term of the commitment period, which may be renewed annually,
between a developer and a New Jersey-based: public or private
university or college; public or private high school; workforce
                                   4

development organization; vocational or technical school or
institution; labor organization, business, or employer association, or
nonprofit organization that provides workforce training,
apprenticeship, and career development services; entities or
consortia consisting of any of the aforementioned entities that
develop and deliver workforce training programs; or any
combination thereof.
   However, the bill provides that a co-applicant may execute the
workforce development agreement on behalf of the developer.
Under the bill, a co-applicant may include any entity that: (1) is
exempt from federal taxation pursuant to section 501(c)(3) of the
Internal Revenue Code of 1986, or is a governmental entity; (2)
contributes or contributed capital, real property, or services related
to the project that directly affect and serve the anticipated residents,
tenants, or customers of the tenants of the project; and (3) enters
into an agreement with the developer that specifies the co-
applicant's participation in the redevelopment project.
   The bill also provides that during the commitment period, each
worker employed to perform construction work at the sports and
entertainment facility is required to be paid not less than the
prevailing wage rate for the worker's craft or trade. In addition, the
bill provides that during the commitment period, each worker
employed to perform building services work at the sports and
entertainment facility, whether pursuant to contract by the
developer or a commercial tenant, commercial subtenant, or other
commercial occupant, is required to be paid not less than the
prevailing wage rate for the worker's craft or trade.
   In addition to the requirements imposed under the Aspire
Program, the bill provides that a sports and entertainment project is
required to exceed the standards established by the authority in
accordance with the green building manual prepared by the
Commissioner of Community Affairs regarding the use of
renewable energy, energy-efficient technology, and non-renewable
resources to reduce environmental degradation and encourage long-
term cost reduction. The bill also provides that the replacement or
retrofitting of existing components and infrastructure at the sports
and entertainment facility as part of the sports and entertainment
project is required to result in a material reduction, as determined
by the authority, of the energy usage, greenhouse gas emissions,
and co-pollutant emissions for the components and infrastructure
replaced.
   Under the bill, the developer of a sports and entertainment
project may receive a total tax credit award equal to 80 percent of
the eligible project cost of the project or $300 million, whichever is
less. However, the bill provides that for a sports and entertainment
project that is completed in phases, the value of tax credits awarded
for any single phase may not exceed $95 million, provided that any
                                  5

eligible project costs, including the corresponding developer
contributed capital, that could not be included in a phase due to the
limitations of this bill may be included in a subsequent phase.
    Under current law, the total value of tax credits that may be
awarded under the Aspire Program, Emerge Program, and certain
other economic development programs is limited to $11.5 billion
over a nine-year period. The law also limits the amount of tax
credits that may be annually awarded under each program during
certain years within that nine-year period. This bill increases the
maximum total value of tax credits that may be awarded during this
period to $14 billion.
    The bill authorizes an additional $1.25 billion in tax credits for
the Aspire and Emerge Programs during each of the seventh and
eighth years of the nine-year period, of which a total of up to $300
million is authorized for sports and entertainment projects, and
which tax credits are authorized in addition to any amounts
otherwise available for these purposes. The bill also provides that
after the nine-year period, any uncommitted balance of tax credits
available from this authorization may be available to be deployed
by the authority in subsequent years for projects under those
programs until all tax credits have been committed.
    In addition, the bill amends current law to clarify that if a
transfer of tax credits is made to transformative projects approved
under the Aspire Program, from the amounts otherwise available
under the Aspire Program or Emerge Program, the limitations based
on location of a transformative project in certain counties are
independent of the restrictions that apply to the award of tax credits
otherwise available under the Aspire Program and Emerge Program.
    Under current law, the Director of the Division of Taxation in
the Department of the Treasury (director) is required to purchase
unused tax credits awarded under certain specified economic
development programs. This bill also requires the director to
purchase unused tax credits awarded for sports and entertainment
projects. Specifically, the bill requires the director to pay an
amount equal to 85 percent of the credit amount, provided that the
issuance date of the tax credit certificate or tax credit transfer
certificate to the developer or the holder of such certificate occurred
at least one year prior to the date of application to the director.


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