Sponsored by:
Senator TROY SINGLETON
District 7 (Burlington)
SYNOPSIS
Permits political subdivisions to require grantees of certain economic development subsidies to enter into community benefits agreements.
CURRENT VERSION OF TEXT
As reported by the Senate Community and Urban Affairs Committee on October 1, 2026, with amendments.
An Act permitting political subdivisions to require grantees of certain economic development subsidies to enter into community benefits agreements and supplementing Title 40A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. As used in this section:
"Community benefits agreement" means a legally binding contract concerning a specific project required by ordinance, resolution, or policy of a county, municipality, or other political subdivision within this State, which agreement shall include, but not be limited to, provisions:
(1) requiring 1[contractors and developers of the project] the developer or recipient of the economic development subsidy1 to make specific contributions for the benefit of the community 1, which may include financial contributions, in-kind contributions, workforce development initiatives, or other project-related community benefits expressly identified in the agreement. A contractor or subcontractor shall be responsible only for those obligations expressly incorporated into the contractor's or subcontractor's written contract, consistent with applicable State and federal law1; and
(2) detailing the project’s contributions to the community related to:
(a) local hiring provisions;
(b) area wage and benefits standards consistent with State statutes;
(c) the engagement of local businesses for the provision of goods and services; or
(d) any other negotiated activity in exchange for the economic development subsidy.
"Economic development subsidy" means the provision of an amount of funds to a recipient business by or from a political subdivision within the State for the purpose of stimulating economic development in New Jersey, including, but not limited to, any bond, grant, loan, loan guarantee, matching fund, tax credit, or other tax expenditure. "Economic development subsidy" shall not mean any contract under which a State public body purchases or otherwise procures goods, services, or construction on an unsubsidized basis, including any contract solely for the construction or renovation of a facility owned by a State public body.
"Tax expenditure" means the amount of foregone tax collections due to any abatement, reduction, exemption, credit, or transfer certificate against any State or local tax, including, but not limited to: taxes on raw materials, inventories, or other assets; taxes on gross receipts, income, or sales; and any use, excise, or utility tax. "Tax expenditure" shall not mean: any credit against any tax liability of an employee; any personal exemption, homestead rebate, credit, or deduction for the expenses of a household or individual; or other reduction of the tax liability of an individual or household.
b. A political subdivision within this State may, by ordinance, condition the grant of any economic development subsidy, which either alone or in the aggregate, is in excess of $50,000 from that political subdivision upon the grantee’s promise to enter into a community benefits agreement.
2. This act shall take effect immediately.