• FAQ’s for everyone
    1. What is the Neighborhood Revitalization Tax Credit Program?
    2. What is the purpose of the NRTC Program?
    3. Who may apply for the tax credit investment?
    4. How much funding is available annually?
    5. What neighborhoods are eligible?
    6. How is a low-moderate income neighborhood determined?

    1. What is the Neighborhood Revitalization Tax Credit Program?
    The Neighborhood Revitalization Tax Credit Program (NRTCP) offers business entities a 100 percent tax credit against various New Jersey state taxes for investing in the revitalization of low-and moderate-income neighborhoods in eligible municipalities.

    2. What is the purpose of the NRTC Program?
    To foster the revitalization of New Jersey’s distressed neighborhoods through comprehensive strategies driven by residents and other public and private stakeholders within the neighborhood in order to:
    • Encourage community-based neighborhood planning.
    • Provide flexible resources to build the capacity of community-based organizations to carry out strategies established in neighborhood plans.
    • Attract private investments into New Jersey’s distressed neighborhoods.
    • Foster ongoing partnerships between private corporations and community-based development organizations.


    3. Who may apply for the tax credit investment?
    All nonprofit entities—defined as a private nonprofit corporation that has been determined by the Internal Revenue Service of the United States Department of the Treasury to be exempt from income taxation under 26 U.S.C. s.501(c)(3) — located in an eligible municipality, demonstrating a commitment to the neighborhood for which it is submitting a plan or project, and possessing the capacity to carryout the proposed work.

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    4. How much funding is available annually?
    Each approved project may qualify for up to $1 million in NRTC funding. The NRTC Program can award up to $10 million per state fiscal year (July 1 to June 30), depending on the amount of funds received from business entities/corporations. Funds that are received but not used in a fiscal year may be carried over to the next fiscal year.

    5. What neighborhoods are eligible?
    The NRTC neighborhood must be located within a municipality that qualifies for special Municipal Aid or contains an Abbott District. A current list of eligible municipalities is available at DCA's web site.

    6. How is a low-moderate income neighborhood determined?
    At least 50% of the households in the neighborhood, as determined by the most recent Census data, shall be of low and moderate income and at least 25% of the households in the neighborhood shall be of low income.
    A low-income household will have a gross household income equal to or less than 50% of the median gross income for the region in which the neighborhood is located. A moderate-income household will have a gross household income greater than 50% but less than 80% of the median gross income for the region in which the neighborhood is located.

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  • FAQ’s for Non-Profits
    1. How does a non-profit organization qualify for the NRTC Program?
    2. What are the major components of a neighborhood plan?
    3. What happens once the plan is approved by the DCA?
    4. What are the eligible uses of funds?
    5. What information is required in a NRTC project application?
    6. What criteria must be met in order for the DCA to approve a project?
    7. What criteria are used to evaluate the capacity of the nonprofit organization submitting a project application?
    8. How long does it take to get the DCA approval of a neighborhood plan and subsequent projects?
    9. What are the contractual responsibilities of the Grantees?
    10. At what point may a community development corporation be eligible to receive corporate investments?
    11. How long will an organization have to use its corporate sponsor’s investment?

    1. How does a nonprofit organization qualify for the NRTC Program?
    A nonprofit must submit a comprehensive neighborhood plan for the DCA approval. Once the plan is approved, the nonprofit may submit a project application to the DCA. A nonprofit may submit a project application with or without a corporate partner.

    2. What are the major components of a neighborhood plan?
    The neighborhood plan must cover a two to ten year period; plans that covering a minimum of five years are strongly encouraged. The plan shall include, but not be limited to, the following components:

    • An organizational background and history
    • Evidence of a participatory planning process
    • A description of the neighborhood
    • A concept of the future of the neighborhood
    • A description of the strategies to be followed to foster preservation and revitalization of the neighborhood
    • A description of the activities to be followed to carry out each strategy
    • A description of the financial requirements projected to carry out the activities
    • A timetable for conducting of the activities, including benchmarks for measuring progress of the activities
    • An organizational budget and a copy of the most recent audit
      The NRTC “Neighborhood Plan Application Submission Guidelines and Applications Forms” can be viewed and downloaded from the NRTC web page (www.nj.gov/dca/dcr/nrtc/index.shtml)


    3. What happens after the neighborhood plan is approved by the DCA?
    If the neighborhood plan is approved, the nonprofit agency will be notified and will become eligible to submit a project application.

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    4. What are the eligible uses of funds?
    Click here for Eligible Project Activities List (MS Word)


    5. What information is required in a NRTC project application?
    The application must be completed via SAGE, DCA’s on-line applications and grants administration system. It shall include, but is not limited to, the following components:

    • A project description, providing detail for each project activity
    • A neighborhood description, including information about physical conditions, economic conditions and population, with supporting statistics
    • An explanation of how the project supports the approved neighborhood plan
    • A timeline for completing the project activities
    • A description of the organization’s capacity to implement and manage the project
    • A project budget

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    6. What criteria must be met in order for the DCA to approve a project application?

    • No more than $1 million in NRTC funds may be requested for each project application.
    • The project must carry out activities that are stated in the approved neighborhood plan.
    • A minimum of 60% of the requested NRTC funds must be used for housing and/or economic development activities.
    • No more than 40% of the requested NRTC funds may be used for complementary or social services programming.
    • A maximum of 20% of the requested NRTC funds may be used for administration, defined as costs related to staff positions involved with implementing one or more NRTC-eligible activities.
    • All project activities must occur within the approved neighborhood’s boundaries; an exception is possible for an activity outside of the neighborhood that particularly benefits residents of the targeted neighborhood.
    • Each activity must be determined to be feasible and ready to proceed within a reasonable time period.
    • The nonprofit must show how ongoing project activities will be funded in the future, if applicable.
    • Priority will be given to nonprofits that identify a corporate partner that has made a commitment of funds to the program.

    7. What criteria are used to evaluate the capacity of the nonprofit organization submitting a project application?

    • The nonprofit organization must demonstrate that it, along with any partners, has the capacity to carry out the activities set forth in the project in a timely and responsible fashion.
    • Capacity to manage the programs and activities for which it will be responsible, including appropriate financial management and administrative systems.
    • Demonstrated track record for carrying out projects.

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    8. How long does it take to get the DCA approval of a neighborhood plan and subsequent projects?
    NRTCP staff review plans and projects in the order in which they are received in our office (for plans) or via SAGE (for projects). The staff will perform an extensive review of each submitted plan and project, including a site visit. To the best extent possible, the review will be completed and a recommendation will be forwarded to the DCA Commissioner within 90 days.

    9. What are the contractual responsibilities of the Grantees?
    Grantees are contractually responsible for, but not limited to the following:

    • The contract shall set forth the timetable and conditions by which the nonprofit organization may draw down the tax credit funds.
    • The nonprofit organization shall provide the DCA with a quarterly tracking report and an annual report on all activities set forth in the project to the DCA and investor. Performance measurements will be incorporated into the quarterly reports.
    • A description of actions taken and funds expended with respect to each activity set forth in the project.
    • A description of progress towards the goals and objectives of each activity including quantifiable measurements of progress and results.
    • Identification of difficulties and obstacles experienced in implementing the activities in the project.


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    10. At what point will a nonprofit organization be eligible to receive corporate investments?
    After its neighborhood revitalization plan is approved by the DCA. The nonprofit organization may obtain commitments for investment from business entities/corporations, but cannot receive them until the DCA has reviewed and approved a project application submitted by the nonprofit organization, and until a grant agreement between the DCA and the nonprofit organization is executed.

    11. How long will an organization have to use its corporate sponsor’s investment?
    NRTC funds may extend beyond the year or years in which the investment was made to the nonprofit organization, but shall not extend beyond three years from the date the project is approved by the DCA.


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  • FAQ’s for Investors
    1. What types of businesses are eligible for the NRTC Program?
    2. What is the financial value of the tax benefit to corporations?
    3. What are the minimum and maximum amounts a corporation may invest in the NRTC Program?
    4. Are S Corps, LLP’s or LLC’s eligible to invest in the NRTC Program?
    5. Are tax credits taken during the corporation’s fiscal year or the State’s fiscal year?
    6. How does a business apply for participation in the NRTC Program?
    7. For how many years may a corporation invest in the NRTC Program?
    8. How will a corporate sponsor know what projects are available for their investment?
    9. May a corporate investor take advantage of the Federal Charitable Deduction in addition to a 100% State tax credit?
    10. To whom shall checks be made payable and where should they be mailed?

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    1. What types of businesses are eligible to apply for the NRTC Program?
    Any corporation or individual authorized to conduct or operate a trade or business in the State of NJ that is also subject to any of the following taxes is eligible.

    • Corporate Business Tax
    • Savings Institution Act
    • Tax imposed on marine insurance companies
    • Tax imposed on insurers generally
    • Sewer and Water Utility Excise Tax
    • Petroleum Products Gross Receipts Tax
      The New Jersey Gross Income Tax is NOT eligible for the credit.


    2. What is the financial value of the tax benefit to corporations?
    For each dollar a corporation invests in the NRTC, it recovers 100% through the tax credit.

    3. What are the minimum and maximum amounts a corporation may invest in the NRTC Program?
    The minimum amount a corporation may invest per year is $25,000 and the maximum is $1,000,000. Multi-year commitments (up to five years) to a nonprofit organization are encouraged.

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    4. Are S Corps eligible to invest in the NRTC Program?
    No - NJ S-Corps are not legally structured to have a sufficient business tax liability.

    5. Are tax credits taken during the corporation’s fiscal year or the State’s fiscal year?
    Tax year is defined as the tax period (fiscal or calendar) of the business entity which is seeking the tax credits. The tax credit shall be awarded only for assistance provided within the same tax year as that in which the Commissioner issued the certificate or, if the Commissioner approves assistance for more than one year, within each following tax year as set forth in the schedule. For example, if the corporate fiscal year ends September 30, 2007, and the investment is received by DCA on October 15, 2007, the tax credit must be taken during the corporation’s fiscal year 2008.

    6. How does a business apply for participation in the NRTC Program?
    Businesses complete a simple one-page application found at www.nj.gov/dca/dcr/forms/nrtcbustaxcredit.doc and send it to the DCA, NRTC Program, 5th Floor, PO Box 811, Trenton, NJ 08625-0811. After the DCA approves the application, and funds are received, the business will receive a tax credit certificate from the DCA to be attached to the corporation’s state corporate tax return.

    7. For how many years can a corporation invest in the NRTC Program?
    Investments may be approved for the current tax year and up to four additional years.

    8. How will a corporate sponsor know what projects are available for their investment?
    The DCA will serve as a clearinghouse to match approved projects with interested investors or corporations may identify a nonprofit partner independently. The NRTC Program serves as a pass-through for corporate investments to nonprofit organizations. If a corporation chooses to invest in the NRTC and does not designate a nonprofit organization, the investment is placed in a non-lapsing trust fund until a partner is identified. A “Clearinghouse of NRTC Plans, Projects and Business Entities” is maintained and regularly updated at the NRTC web page (www.nj.gov/dca/dcr/nrtc/index.shtml).

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    9. May a corporate investor take advantage of the Federal Charitable Deduction in addition to a 100% State tax credit?
    It is recommended that you discuss IRC.2006-Code-Vol.Sec.170 (Charitable Contributions and Gifts) with your corporate tax department or tax advisor.

    10. To whom shall checks be made payable and where should they be mailed?

    A check must be made payable to: Treasurer, State of New Jersey

    The mail address (overnight delivery is preferred):
    New Jersey Department of Community Affairs
    Neighborhood Revitalization Tax Credit Program
    PO Box 806
    101 S. Broad Street, 5th. Floor
    Trenton, NJ 08625-0806
    Attention: Bradley Harrington

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