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S 4135

Provides for the establishment of life long learning centers within the state university to provide courses to persons 40 or older seeking to explore life options

2025 Regular Session Introduced by Kevin Parker

Expands NJ Aspire credits to include higher-ed affiliated institutional projects and distressed hospital projects, with higher incentive rates, caps up to $400M, and exemptions.

REFERRED TO HIGHER EDUCATION
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Bill Summary · S 4135

Summary — S-4135 (1R)

Note: the bill file provided is principally amendments to the New Jersey Aspire Program related to “institutional projects” and newly-defined “distressed hospital projects.” This content does not match the short title you supplied about lifelong learning centers; the summary below reflects the bill text and committee reports on the Aspire Program changes.

Main purpose

Amend P.L.2020, c.156 (the New Jersey Aspire Program) to (1) allow certain higher‑education–affiliated redevelopment projects (“institutional projects”) to qualify for Aspire tax‑credit incentives, and (2) create and treat specially defined “distressed hospital projects” for incentive eligibility and program rules. The changes alter what counts as project costs, developer capital requirements, incentive amounts, and certain program review requirements.

Key provisions and changes

  • Defines “institutional project”: redevelopment developed by or affiliated with a public or private institution of higher education where ≥51% of square footage is dedicated to “qualified research and development.” Lists priority industries (e.g., technology, AI, software, financial services, film/digital media, advanced manufacturing, biotech, transportation/logistics, renewable energy).
  • Expands how “project cost” is calculated for institutional projects to include construction/completion of research workspaces; meeting, classroom, dining and dormitory spaces; and common areas (hallways, utility rooms, storage, parking).
  • Defines “distressed hospital project”: a health system that (a) operates at least four general acute care hospitals licensed in NJ; (b) incurred average annual charity‑care expenses ≥ $250,000 (excluding government subsidies) over the five most recent calendar years for which audited statements exist; and (c) is owned/leased by a 501(c)(3) organization (or subsidiary) that has filed for bankruptcy under Title 11.
  • For distressed hospital projects, land costs up to 20% of eligible project cost may be included in project cost.
  • Developer contribution requirement:
    • Institutional projects: minimum capital contribution of $30 million (regardless of total project cost), except when located in a government‑restricted municipality.
    • Distressed hospital projects: exempt from the developer‑contribution requirement.
  • Incentive award limits:
    • Institutional projects: tax credit award = 80% of project costs, capped at $120 million (non‑transformative); transformative institutional projects: 80% up to $400 million or the project financing gap.
    • Distressed hospital projects: award = 85% of project costs, capped at $120 million (non‑transformative); transformative distressed hospital projects: up to $400 million or the financing gap. Transformative distressed hospital projects require ≥200,000 sq. ft.
  • Exemptions and procedural changes:
    • Institutional and distressed hospital projects are exempt from the Aspire Program’s net‑benefit analysis (an analysis required for many other redevelopment projects).
    • Distressed hospital projects are exempted from certain rate‑of‑return reviews and community benefits agreement requirements applicable to other projects.
    • Authority may rescind awards and recapture tax credits if a distressed hospital project ceases to operate any general acute care hospital during the eligibility period.
  • Eligibility period: distressed hospital projects may elect an eligibility period up to five years (instead of the standard up to 10 years referenced for some categories).

Who is affected

  • Public and private institutions of higher education proposing major R&D‑focused redevelopment projects and their developers.
  • Large nonprofit hospital systems meeting the “distressed” definition.
  • New Jersey Economic Development Authority (NJEDA) — administratively and financially (authority will award and manage credits).
  • State revenues — potential multi‑year reduction (see fiscal note).

Fiscal and procedural impact

  • Office of Legislative Services (OLS) estimate: indeterminate multi‑year decrease in State revenues because the bill permits NJEDA to award tax credits for these new eligible project types. As of March 12, 2025, approximately $2.9 billion in uncommitted Aspire/Emerge tax credits existed (about $2.1B for non‑transformative and $842M for transformative projects).
  • Legislative status (selected):
    • Introduced in Senate: 2/13/2025. Referred to Senate Economic Growth Committee; later to Senate Budget & Appropriations.
    • Passed Senate: 6/30/2025 (39–0).
    • Received in Assembly: 7/24/2025. Reported out of Assembly Commerce, Economic Development and Agriculture Committee with amendments (11/24/2025); referred to Assembly Appropriations.
  • Sponsor: Sen. Kevin S. Parker.
  • Companion: A-5470.

Notes

  • Committee amendments refined definitions (including a detailed “distressed hospital” definition), adjusted project‑cost inclusions, set the $30 million developer contribution threshold for institutional projects, and created several program exemptions for the defined project types.

Compiled from official sources — confirm details with the bill’s official record.

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