The Murphy administration approved $11.4 million of corporate tax breaks for some of the state’s largest companies, in return for financing nonprofits in some of New Jersey’s poorest cities.
Formally known as the Neighborhood Revitalization Tax Credit, the state program provides tax cuts to businesses for any dollars they provide to nonprofits. The $11.4 million was provided to companies who helped finance 18 nonprofits in 11 cities, which include Atlantic City, Camden, Newark, Paterson and Trenton.
Those nonprofits must in turn use at least 60% of the funds for housing and economic development, and the remaining funds toward “supportive services and other activities that promote neighborhood revitalization,” according to the New Jersey Department of Community Affairs, which oversees the program.
Eligible projects include construction and rehabilitation of housing stock, employment training, social services, recreation, small business assistance, and community outreach activities.
One of the largest corporate donors was Horizon Blue Cross of New Jersey, which contributed to eight nonprofits in six cities.
Other companies include NJM Insurance, which provided assistance to four nonprofits in three cities, PSEG which contributed to five nonprofits in five separate cities, Valley National Bank which contributed to seven nonprofits in six separate cities, Investors Bank which contributed to seven nonprofits in six separate cities, M&T Bank which contributed to five nonprofits in five separate cities, Provident Bank which contributed to five nonprofits in five separate cities, and TD Bank which contributed to four separate nonprofits in four separate cities.
“The Neighborhood Revitalization Tax Credit Program is one of the best public-private partnerships in the state because everyone wins. Corporations that participate get a tax credit and contribute to neighborhood redevelopment programs of their choosing; nonprofit groups with a proven track record of helping their communities get much needed dollars; and residents get a better neighborhood,” Lt. Gov. Sheila Oliver, who doubles as the DCA commissioner, said in an April 8 statement.