ASSEMBLY COMMERCE, ECONOMIC DEVELOPMENT AND AGRICULTURE COMMITTEE

STATEMENT TO

ASSEMBLY, No. 6298

STATE OF NEW JERSEY

DATED:  JANUARY 5, 2026

      The Assembly Commerce, Economic Development and Agriculture Committee reports favorably Assembly Bill No. 6298.

      This bill would modify certain provisions of the New Jersey Aspire Program (program), which is administered by the New Jersey Economic Development Authority (authority).  Specifically, this bill would exempt certain transformative projects that are located within government-restricted municipalities and within proximity to certain facilities from certain requirements of the program.

     Under current law, additional tax credits are available under the program for certain redevelopment projects that qualify as transformative projects.  In order to qualify as a transformative project, a redevelopment project would need to meet certain criteria, including that the project is deemed to be of special economic importance.  State regulations prescribe the conditions that must be met for a project to qualify as being of special economic importance, which conditions may include, but not be limited to, the creation of a minimum number of new full-time jobs for certain commercial projects, the substantial renovation of a vacant commercial building, or if the project is a transformative environmental remediation project.

     Additionally, current law generally requires all redevelopment projects, including transformative projects, to undergo a fiscal impact analysis by the authority to ensure the overall assistance provided to the project would result in a net positive benefit to the State.  However, some projects, including those that are predominately residential or that qualify as a special mission non-profit project, are currently excluded from the calculation of the net benefit test during application review.

     Under the bill, any transformative project that is:  (1) located in a government-restricted municipality; and (2) located in close proximity, as determined by the authority, to a multi-modal transportation hub, a public or private institution of higher education, or a health care facility licensed pursuant to P.L.1971, c.136 (C.26:2H-1 et seq.) that serves underrepresented populations, would be exempt from the requirement to demonstrate a net positive benefit test to the State.  Additionally, for any application submitted after the enactment of the bill, any transformative project meeting these conditions would be deemed to be of special economic importance.