Cultural Arts Facilities Expansion Program – CAFE

Open in new Tab Cultural Arts Facilities Expansion Program – CAFE We are currently focused on reviewing applications from Round 1 and 2 to ensure a fair evaluation process. Once these reviews are complete, we will contact applicants directly with any necessary next steps. A decision on reopening CAFE applications will be made at a later time. Thank you for your understanding and patience as we work through this process. The Cultural Arts Facilities Expansion (CAFE) Program provides tax credits to incentivize broad scale capital projects for arts and cultural venues in New Jersey. The CAFE program focuses on development and rehabilitation of cultural arts facilities as a key component of the state’s economy. AMOUNT The CAFE Program awards tax credits via a competitive application process up to 100% of eligible project costs. Minimum project size is $5 Million. Maximum award is $75 Million. GOALS The CAFE Program aims to: – Elevate arts and culture as a key sector within the state’s economy. – Attract visitors to the state and local communities. – Increase the number of first-rate art and cultural experiences for residents and visitors. – Promote equitable engagement with the arts for underrepresented groups and underserved communities. The tax credits are transferable and can be sold. ELIGIBILITY To be eligible for this program, the applicant must be a cultural arts institution which will have ownership or lease space in the cultural arts facility, and will operate the facility. In addition, the project must also be open to the public. Cultural arts institution may include government entities, not-for-profits whose primary mission is arts and culture, or a for-profit business receiving a federal or state historic tax credit. Projects where construction has commenced prior to submitting an application are not eligible, unless the Authority determines (clarified in NJEDA Board Memo May 13, 2025) that the cultural arts project would not be completed without an award of tax credits under the program. APPLICATION ELIGIBILITY AWARD SIZE FEES APPLICATION DETAILS The application period is currently closed. ELIGIBLE APPLICANTS To receive a tax credit through the Cultural Arts Facilities Expansion Program, a project must meet the following criteria: Minimum project size is $5,000,000. Applicant must be a cultural arts institution, which will have ownership or lease space in the cultural arts project and will operate the facility for at least 5 years after its construction. The project must be a cultural arts project, and the facility must be open to the public. The applicant must demonstrate that a project financing gap exists. The applicant must have a letter of support for the project from the chief executive ( Mayor) or governing body ( City Council) of the municipality(s) where the project is located. Construction must not begin before application submission unless the work was ordered by a building code or other official with jurisdiction over the site of the cultural arts project to correct a other hazard, or the Authority determines that the cultural arts project would not be completed without an award of tax credits under the Program as detailed in NJEDA Board Memo May 13, 2025. Demolition and environmental remediation activities are allowed prior to application although this type of work will not be considered an eligible cost if performed prior to application submission. Project must include at least 20% equity in the project, or 10% for projects in the government-restricted municipalities (GRMs) defined as Atlantic Trenton. Projects must comply with minimum environmental and sustainability standards (aka green building standards). All construction and building services workers must be paid prevailing wages.