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Division of Taxation

Director's Tax Credit Purchase Program

P.L.2025, c.113 and P.L.2025, c.81 amend N.J.S.A. 52:18A-263 to expand and clarify the Division of Taxation's role in purchasing unused tax credits issued under New Jersey incentive programs by requiring mandatory purchases for certain programs.

Specifically, the Division must purchase unused tax credits issued under:

  • The New Jersey Aspire Program Act (N.J.S.A. 34:1B-322 through 34:1B-335),
  • The Cultural Arts Incentives Program Act (N.J.S.A. 34:1B-383 et seq.), or
  • The Garden State Film and Digital Media Jobs Act (N.J.S.A. 54:10A-5.39b et seq.).

For Aspire and Cultural Arts credits, the Division will pay 85% of the credit amount if the tax credit certificate (or transfer certificate) was issued at least one year before the application to sell the credit back to the State.

Additionally, the law provides that if an Aspire credit is sold back after the sixth year of its eligibility period, developers must return a larger share of any excess return on investment, now 50% of that amount, as required under program rules. This means that if an Aspire Program tax credit is sold back to the State after the sixth year of its eligibility period, the developer must repay 50% of any profit above what the program considers a reasonable return on the project.

Beginning January 1, 2026, the Director must purchase 95% of the value of tax credits awarded under the Garden State Film and Digital Media Jobs Act for any original application approved by the New Jersey Economic Development Authority (NJEDA) on or after that date, as long as the tax credit certificate (or transfer certificate) was issued to a New Jersey studio partner at least one year before the application to the Division. The total amount of credits the Division may purchase is capped at $80 million in Fiscal Year 2026, $160 million in FY 2027, $240 million in FY 2028, and $200 million in each fiscal year thereafter. If eligible applications exceed the fiscal year cap, the excess credits will be purchased in the following fiscal year, but the Division may not exceed the annual limits.

Purchases of unused credits from all other incentive programs remain at the Director's discretion, and the purchase rate for those credits is capped at 75% of the credit amount.

Note that applications to sell unused tax credits to the State under the Director's Tax Credit Purchase Program must be submitted on or after July 15 but before August 31, as required by N.J.A.C. 18:34-1.3(a).

For additional information and applications, call the Grant and Credit Review Unit at 609-292-7127.

  • Cultural Arts Incentives Program Act
  • The Historic Property Reinvestment Tax Credit
  • The Brownfield Redevelopment Incentive Program Tax Credit
  • The New Jersey Innovation Evergreen Act
  • The Food Desert Relief Act
  • The New Jersey Community-Anchored Development Act
  • The New Jersey Aspire Program Act

A taxpayer must include a one-time, non-refundable application fee to offset the Division’s costs for processing the application. The amount of the fee shall be based on the value of the eligible program tax credit to be purchased as follows:

  • For a tax credit certificate up to $500,000, a $1,000 application fee;
  • For a tax credit certificate over $500,000, and up to $1,000,000, a $2,500 application fee; and
  • For a tax credit certificate over $1,000,000, a $5,000 application fee.

All tax credits, with the exception of Aspire Program Act, Cultural Arts Incentives Program Act, Emerge Program Act, New Jersey Community-Anchored Development Act and Garden State Film and Digital Media Jobs Act, are eligible for purchase at the following rates:

  • An eligible program tax credit presented more than three years before its expiration shall be eligible for purchase at a value not to exceed 20% of the value of the credit;
  • An eligible program tax credit presented more than two years before its expiration, but less than three years before its expiration, shall be eligible for purchase at a value not to exceed 40% of the value of the credit;
  • An eligible program tax credit presented more than one year before its expiration, but less than two years before its expiration, shall be eligible for purchase at a value not to exceed 60% of the value of the credit; and
  • An eligible program tax credit presented less than one year before its expiration, but at least 90 days before its expiration, shall be eligible for purchase at a value not to exceed 75% of the value of the credit.

The Emerge Program Act and the New Jersey Community-Anchored Development Program that are presented for purchase shall not be presented less than two years after issuance and shall be reimbursed at 90% of the value of the credit.

The Aspire Program Act and Cultural Arts Incentives Program Act that are presented for purchase shall not be presented less than one year after issuance and shall be reimbursed at 85% of the value of the credit.

The Garden State Film and Digital Media Jobs Act that are presented for purchase shall not be presented less than one year after issuance and shall be reimbursed at 95% of the value of the credit.


Last Updated: Tuesday, 08/19/25