A4875 —

A4875 AAPFISCAL StatementESTIMATE 10/26/20 ASSEMBLY APPROPRIATIONS COMMITTEE   STATEMENTLEGISLATIVE TOFISCAL  ESTIMATE ASSEMBLY, No.

4875   STATE OF NEW JERSEY 219th LEGISLATURE   DATED:

 OCTOBEROCTOBER 26,28, 2020         SUMMARY The  AssemblySynopsis: Appropriations Committee reports favorably Assembly Bill No.

4875.Extends certain document submission deadlines for Urban Transit Hub Tax Credit program and Economic Redevelopment and Growth Grant Program.

     Type Thisof billImpact: extends for two years the document submission deadlines applicable to a business or developer that is seeking to receive tax credits under the Economic Redevelopment and Growth Grant Program (ERGG) and the Urban Transit Hub Tax Credit Program (UTHTC).

     Annual Theloss deadline to submit the required documentation for approval of taxState documentsrevenue. for certain residential and commercial UTHTC projects is extended from April 26, 2021 to December 31, 2023.  The bill also changes from July 28, 2021 to December 31, 2023 the date when approved UTHTC projects will begin forfeiting annual tax credit awards if the project has not been certified as having met its investment capital and employment qualifications.

     Agencies Finally,Affected: the bill extends, to December 31, 2023, the deadline by which developers of certain qualified residential and mixed use parking ERGG projects are required to submit temporary certificates of occupancy.

Economic Development Authority   FISCAL  IMPACT:Annual Fiscal Impact   State Revenue Loss Indeterminate   ·         The Office of Legislative Services (OLS) estimates that this bill will result in an indeterminate annual loss of State revenue.  The OLS assumes that some businesses wanting to participate in the programs are likely to miss certain deadlines, due to the Covid-19 public health emergency or other factors, and therefore lose access to the tax credits.  As a result of the deadline extension, more businesses and developers could qualify for the tax credits awards and more tax credits could be awarded.

       ·         The OfficeOLS ofcannot Legislativequantify Servicesthe (OLS)exact estimatesamount thatof thisrevenue billthat willwould resultbe inlost anbecause indeterminateof annuala losslack of Statedata revenue. on Thethe OLSspecific assumesprojects that somemay businessesbe wantingaffected toby participatethe inbill, the programsamount areof likelytax tocredits missthey certainwould deadlines,receive, duethe tonumber of businesses and developers that would have lost the COVID-19tax publiccredits healthas emergency,a orresult otherof factors,the old deadline, and thereforethe losenumber accessof businesses and developers that will receive credits with the new deadline.  The OLS notes that to the extent the tax credits.credit programs lead to increased economic activity, the State could realize additional indeterminate revenues.

As  a  resultBILL ofDESCRIPTION this  deadline      extension,This morebill businessesextends andthe developersdocument couldsubmission qualifydeadlines forapplicable theto taxa creditbusiness awardsor anddeveloper morethat was seeking to receive tax credits couldunder bethe awarded.Economic Redevelopment and Growth Grant Program (ERGG) and the Urban Transit Hub Tax Credit Program (UTHTC).

      The OLSoriginal cannotdeadline quantifyfor submitting the exactrequired amountdocumentation offor revenueapproval thatof wouldtax bedocuments lostfor becausecertain ofresidential aand lackcommercial ofUTHTC dataprojects onwas theApril specific26, projects2021.  thatThis maybill beextends affected by the bill,deadline theto amountDecember of31, tax2023.  creditsThe theybill wouldalso receive,changes the numberdate ofwhen businessesapproved andUTHTC developersprojects thatwill wouldbegin haveforfeiting lostannual the tax creditscredit asawards aif result of the oldproject deadline,has andnot thebeen numbercertified ofas businesseshaving andmet developersinvestment thatcapital willand receiveemployment creditsqualifications.  withThe theoriginal newdeadline deadline. was TheJuly OLS28, notes2021, thatand to the extentbill thatextends taxit credit programs lead to increaseDecember economic31, activity,2023. the State could realize additional indeterminate revenues.

      The bill also extends the deadline for when developers of certain qualified residential and mixed use parking ERGG projects are required to submit temporary certificates of occupancy to December 31, 2023.      FISCAL ANALYSIS   EXECUTIVE BRANCH         None received.

    OFFICE OF LEGISLATIVE SERVICES         The OLS estimates that this bill will result in an indeterminate annual loss of State revenue.  The OLS assumes that some businesses wanting to participate in the ERGG and UTHTC programs are likely to miss certain deadlines, due to the Covid-19 public health emergency or other factors, and therefore lose tax credits.  As a result of the deadline extension, more businesses and developers could qualify for the tax credits awards and more tax credits could be awarded.  The OLS cannot quantify the exact amount of revenue that would be lost because the OLS does not have data on the specific projects that would qualify, the amount of tax credits they would receive, and the number of businesses and developers that would have lost the tax credits as a result of the old deadline.   The OLS also cannot estimate how many businesses will gain tax credit awards as a result of the extension of the deadlines or how many developers will be able to submit the temporary certificates of occupancy by the new deadline.  The OLS notes that to the extent the tax credit programs lead to increased economic activity, the State could realize additional indeterminate revenues.

    Section:

Revenue, Finance and Appropriations Analyst:

Parag Shende  Associate Fiscal Analyst Approved:

Frank W.

Haines III Legislative Budget and Finance Officer     This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.

  This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).