Businesses looking to get a tax credit while improving the neighborhood got a reminder today about a state program to encourage such investment.
Under the Neighborhood Revitalization Tax Credit Program, businesses can get a 100 percent credit against state taxes for contributions up to $1 million to qualified nonprofit organizations working on revitalization of low- and moderate-income communities in eligible municipalities, according to the state Department of Community Affairs.
"Companies get a tax credit and contribute to neighborhood redevelopment programs of their choosing, nonprofit groups with a proven track of helping their communities get much needed dollars, and residents get a better neighborhood," said Ana Montero, an assistant commissioner with the DCA, in a statement today recognizing a $1 million contribution by TD Bank.
The program, also known as NRTC, is overseen by the DCA, which puts together nonprofit groups with businesses that contribute funding for the projects.
Each year, a total of $10 million in tax credits is available under the program, which has been met for fiscal year 2012, the third year in a row the contribution limit has been reached, according to the agency.
Businesses must apply and be approved for the tax credits, and can ask to have their funds directed to specific municipalities or nonprofits, according to DCA.
Today, TD Bank announced a $1 million contribution for construction, rehabilitation and restoration of buildings in Camden, Elizabeth, Newark and Phillipsburg. The funds will help provide access to education facilities, community spaces, playgrounds, and office spaces among other needs, according to the bank and the state. The money will be spilt among the Elizabeth Development Co., Heart of Camden, Ironbound Community Corp., NORWESCAP, and Unified Vailsburg Services Organization.
This is the second year TD Bank is making a contribution to the program, having previously contributed $1 million.
Public Service Enterprise Group Inc. was one of the first companies to contribute to the program, and the corporation and its utility subsidiary PSE&G have put more than $8 million into the program, according to the company and DCA records.
"We are funding projects that are restoring dignity and the quality of life to communities where we do business," said Jennifer Kramer, spokeswoman for PSEG. "Our investments are helping to fix buildings that have become eyesores and hot spots for crime, while creating homes for low-income families and opportunities for small businesses."
Since NRTC was established in 2003, 24 revitalization plans in 13 cities have been approved by the DCA. In the program's history, 45 grants, with more $34 million in funding, have been approved, according to the agency.