The basics:

• NJEDA will pause new Aspire applications by week’s end
• Program expected to reopen this fall with revised standards
• Aspire provides gap financing for development projects
• NJEDA says reforms will emphasize fiscal discipline, project readiness

The New Jersey Economic Development Authority is temporarily pausing new applications for its Aspire tax credit program.

The agency said it will review the incentive and develop an updated framework aimed at clearer standards, fiscal discipline, accountability and project readiness that aligns with Gov. Mikie Sherrill’s economic development and budget priorities.

NJEDA Chief Executive Officer Evan Weiss announced the pause during the authority’s July 22 board meeting, saying the agency expects to stop accepting applications by the end of the week and reopen the program this fall after implementing reforms.

The NJEDA Aspire program replaced the former Economic Redevelopment and Growth Program in 2021. It provides gap financing for commercial, mixed-use and residential development projects.

Since its launch, the program has supported more than 40 projects resulting in more than 7,500 new housing units. It has also helped finance film studios, healthcare centers and other major economic development projects, such as the Monmouth Medical Center relocation, Netflix Studios Fort Monmouth, HELIX and more.

‘Aspire can be better’

Weiss said the program has produced meaningful results but requires significant changes.

“Still, Aspire can be better,” Weiss said. “Through listening sessions, dozens of conversations, and our own data analysis it is clear that Aspire can be a difficult tool to use. It can also be an expensive one, with as much as half of Aspire credit awards paying for transaction costs. In large part because of this inefficiency, demand for the program far exceeds available resources.

“Gov. Sherrill has made fiscal discipline a key part of her budget and economic development strategy,” he added. “Ensuring Aspire tax credits do as much for the projects they are meant to support as possible is our goal.”

According to NJEDA, the Aspire pause will allow the authority to process existing applications, preserve funding for viable projects, and create a more transparent and competitive initiative.

Ensuring Aspire tax credits do as much for the projects they are meant to support as possible is our goal.
– Evan Weiss, NJEDA CEO

“During this time, the NJEDA will review all options on how to strengthen the program,” said Weiss.

What happens next

Under the transition plan, non-transformative projects with completed applications will continue through the review and approval process over the coming months.

Transformative projects seeking more than the $190 million remaining in the program’s allocation will have their applications discontinued and application fees refunded. They will also have the opportunity to reapply once the revised program reopens.

NJEDA stressed this is not a suspension of the program.

“We are committed to updating the program with clearer standards, a stronger emphasis on fiscal discipline and project readiness, and, most importantly, alignment with Gov. Sherrill’s economic development and budget priorities,” said Weiss. “We look forward to working with key stakeholders, industry leaders, and government partners to ensure changes are done responsibly and will result in the greatest economic impact for communities across the state.”

“NJBIA understands the need for reform to get the most out of our tax credit programs and looks forward to working with NJEDA to improve our economic development strategies,” New Jersey Business & Industry Association Chief Government Affairs Officer Chris Emigholz told NJBIZ. “In light of recent layoff and relocation announcements, we just want to make sure that any pause is as short as possible.

“We don’t want to go too long without this critical tool, especially now.”