Applicants are eligible for up to $75 million per project
New Jersey is offering tax incentives of up to $75 million per project for the development and rehabilitation of venues such as performing arts centers and museums.
The New Jersey Economic Development Authority on Monday said it is accepting applications for its Cultural and Arts Facilities Expansion, or CAFE, program. The agency is offering tax credits to cultural arts institutions to build or renovate facilities, including aquariums, historical societies, libraries, galleries, museums, performing arts centers, and other eligible cultural or arts sites.
Awardees will receive tax credits covering 100% of eligible project costs, up to $75 million, according to the EDA.
Eligible applicants include government entities and not-for-profit groups whose primary mission is arts and culture, or a for-profit business receiving a federal or state historic preservation rehabilitation tax credit, the EDA said. Applicants are required to contribute 10% or 20% equity to the project, depending on its location. The minimum project size is $5 million.
Applications must be submitted by June 6.
About the CAFE Program
The Cultural Arts Facilities Expansion (CAFE) Program provides tax credits to incentivize broad scale capital projects for arts and cultural venues in New Jersey. The CAFE program focuses on development and rehabilitation of cultural arts facilities as a key component of the state’s economy.
To receive a tax credit through the Cultural Arts Facilities Expansion Program, a project must meet the following criteria:
- Minimum project size is $5,000,000.
- Applicant must be a cultural arts institution, which will have ownership or lease space in the cultural arts project and will operate the facility for at least 5 years after its construction.
- The project must be a cultural arts project, and the facility must be open to the public.
- The applicant must demonstrate that a project financing gap exists.
- The applicant must have a letter of support for the project from the chief executive (i.e., Mayor) or governing body (i.e., City Council) of the municipality(s) where the project is located.
- Construction must not begin before application submission unless the work was ordered by a building code or other official with jurisdiction over the site of the cultural arts project to correct a health, safety, or other hazard. Demolition and environmental remediation activities are allowed prior to application although this type of work will not be considered an eligible cost if performed prior to application submission.
- Project must include at least 20% equity in the project, or 10% for projects in the government-restricted municipalities (GRMs) defined as Atlantic City, Paterson, and Trenton.
- Projects must comply with minimum environmental and sustainability standards (aka green building standards).
- All construction and building services workers must be paid prevailing wages.
- The applicant must partner with an organization(s) that supports Work First New Jersey recipients.
- The project must be completed (obtain a temporary certificate of occupancy) within four years of executing the tax credit agreement.
- The project must achieve a minimum score as outlined in the CAFE Program scoring criteria.
Article courtesy of CoStar and eligibility courtesy of the NJEDA.Â