Skip to Content
Streetsblog USA home
Streetsblog USA home
Log In
Streetsblog.net

New Jersey’s TOD Tax Credit Is Producing Jobs

The state of New Jersey appears to have found a winning formula for encouraging transit-oriented development.

Since 2008, the Garden State has been using a special tax credit to reward businesses that relocate, build or expand within one-half mile of a transit hub, or take advantage of freight rail. The Urban Transit Hub Tax Credit has provided $352 million in incentives for nine projects in Newark, Elizabeth, New Brunswick and Jersey City.

false

Already, the policy has produced some impressive returns. The initial investment is credited with attracting $910 million in private capital and creating more than 1,400 new jobs. The strategy also helped the state retain Panasonic's U.S. headquarters, according to Network blog Mobilizing the Region.

The Tri-State Transportation Campaign, publishers of Mobilizing the Region, explains how the tax credit is helping promote sustainable development patterns in New Jersey's cities:

Four of the approved credits are going to projects in Newark. These include the planned “Teachers Village” near Broad Street station, which would include three charter schools, 60,000 square feet of retail and workforce housing for teachers. A market-rate condominium development on Rector Street will also benefit. And the credit will be “critical” to One Theater Square, a 44-story mixed-use tower with market-rate and artist housing that is planned across the street from the NJ Performing Arts Center, according to developer Dranoff Properties.

Nearby Elizabeth has benefited from the freight provision of the program, according to William O’Dea, Deputy Executive Director of the Elizabeth Development Company. “It’s made a very notable difference on freight rail,” O’Dea told MTR. “It’s been the difference between Wakefern [Food Corporation] leaving the state and staying.” Wakefern received a credit late last year to expand its food distribution operations in Elizabeth and Newark, creating 500 new permanent jobs and over 800 construction jobs.

Now in its third year, the Urban Transit Hub Tax Credit has clearly helped build a critical mass of development in Newark and other cities. It could be a worthy model for other states looking to use existing and planned transit services to drive urban redevelopment.

Just think how much traffic these projects have kept off the turnpike. This smart policy will continue to save the state of New Jersey money by reducing congestion and wear and tear on roads.

Elsewhere on the Network today: PubliCola highlights a new report from Smart Growth America that recommends increased transit funding from Washington State in order to create jobs; New Jersey Future reports downtown revitalization efforts in traditionally poorer southern part of the state are attracting new businesses; and Bike Portland outlines a multi-year campaign by pedestrian advocacy groups to fix a dangerous provision in Oregon's crosswalk laws.

Stay in touch

Sign up for our free newsletter

More from Streetsblog USA

Monday’s Headlines Go Through Basic Training

An NYU study looks into why the U.S. is lagging behind on high-speed rail, and one transportation expert ponders the impact on growth.

July 15, 2024

Sustainable Transportation Advocates Need to Talk About Sustainable Urban Design

A new book hopes to act as a "magic decoder ring" to our built environment — and a powerful tool to understand how sustainable transportation networks can fit within them.

July 15, 2024

Friday’s Headlines Take Me to the River

Politico reports that the Biden administration is investing $2.5 billion in updating aging Mississippi River locks and dams like this one in Iowa. Transporting freight by barge produces less emissions than trucks or even rail.

July 12, 2024

Friday Video: Take a Spin on Boston’s Electric Cargo Bike Share

Can't afford a $7,000 Urban Arrow cargo e-bike ? In Boston, you can now rent one for just a few bucks.

July 12, 2024

Talking Headways Podcast: Electrify the Rails

Adrianna Rizzo of Californians for Electric Rail on California's looming lobbyist-fueled hydrogen train mistake: "We’re locking in low service for potentially decades."

July 11, 2024
See all posts