The Greater Atlantic City Chamber testified on December 16 before the Assembly Appropriations Committee in support of A2076/S1323, which makes important amendments to New Jersey’s Aspire Program. We are pleased to report that the bill passed the Assembly and Senate on December 19th and now heads to Governor Murphy’s desk for signature. These amendments, developed through extensive collaboration between legislators, the New Jersey Economic Development Authority, and the business community, will enhance the program’s effectiveness in driving development in challenging markets like Atlantic City.
The Chamber’s approach to these amendments was guided by our Economic Development and Policy Committees, whose members provided valuable insights from their real-world experience with development challenges in our region.
“These amendments are crucial for government-restricted municipalities like Atlantic City, where development faces unique challenges,” said Ken Calemmo, Chair of the Economic Development Committee. “These changes will help make mid-sized projects financially feasible. We need this to stimulate residential development and continue Atlantic City’s economic diversification.”
Barbara DeMarco, Policy Committee Chair and Chair-Elect of the Chamber emphasized the collaborative nature of the process: “This is a perfect example of how government and private industry can work together to refine and improve programs based on practical experience. The sponsors’ willingness to listen to stakeholder input and incorporate real-world feedback has resulted in thoughtful amendments that will make the program more effective.”
Mark Callazzo, Managing Partner of RMS Capital, board member of the Greater Atlantic City Chamber, and developer of several Atlantic City projects provided a practical perspective: “Under the current structure, the extended payout of tax credits over 10 years dramatically erodes their present value due to interest expense. These amendments, particularly the option for a 5-year eligibility period, will help developers realize greater upfront value from the credits and address the substantial financing gaps caused by escalating construction and material costs. This accelerated timeline is especially critical for residential projects in Atlantic City, where market uncertainties make the current decade-long credit structure financially prohibitive.”
Key amendments to the bill are as follows:
- Increasing the maximum tax credit from 80% to 85% of project costs in Government-Restricted Municipalities
- Providing flexibility to choose between 5 and 10-year eligibility periods in Government-Restricted Municipalities
- Enhancing provisions around building sales during the eligibility period
- Streamlining various administrative processes
The Chamber’s full testimony before the Assembly Appropriations Committee can be read by clicking here. We thank our committee members for their leadership in helping shape these important improvements to the Aspire Program.
