Sunday, May 19, 2024
NJ News

Governor Corzine Signs Urban Transit Hub Tax Credit Act

Governor Jon Corzine has signed the Urban Transit Hub Tax Credit Act in an effort to encourage redevelopment and job growth at locations served by transit. Conceived by the Governor’s Office of Economic Growth and passed by the Legislature in December, the statute establishes a tax credit program for qualifying businesses that make capital investments and increase employment around targeted urban rail transit hubs. The act stipulates that a business can qualify for up to $75 million in tax credits (corporate business tax, insurance premium tax or gross income tax liability credits for up to 10 years) to cover the costs of investing in facilities within a designated urban transit hub and which employ at least 250 people. The state Commerce Commission will designate sites that qualify, generally located within a half-mile radius of rail stations. The program targets municipalities that are eligible for urban aid, have at least 30 percent of real property value exempt from property taxes, have property base wealth measured as equalized valuation under $100,000 per capita and have a commuter rail station. Nine municipalities qualify—Camden, East Orange, Elizabeth, Jersey City, Newark, New Brunswick, Paterson, Trenton and Hoboken.