EDA increases allowable amount under UTHTC to 35 percent

TRENTON – The Economic Development Authority modified the Urban Transit Hub Tax Credit program today, lifting the 20 percent cap

TRENTON – The Economic Development Authority modified the Urban Transit Hub Tax Credit program today, lifting the 20 percent cap and increasing the maximum tax credit award to 35 percent.

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The board decided to increase the tax credit cap in order to prevent stifling of development, according to EDA.

“It became clear that the financial structure around several of these projects that have been developed in the last year had relied on the statutory allowance of 35 percent,” according to an EDA memo.

“The unintended consequence of the 20 percent credit policy appears to threaten the very projects in distressed neighborhoods that may have the greatest physical and economic impact to the cities in which they are located.”

Last month, the EDA approved a motion to provide $100 million more in Urban Transit Hub Tax Credits to nine eligible municipalities to help complete various residential projects that are ready to go. It decided to foot more money after the $250 million for UTHTC had dried up.

EDA increases allowable amount under UTHTC to 35 percent