Prudential Financial is seeking to amend its application for a $250.8 million Urban Transit Hub Tax Credit (UTHTC), which originally proposed to build a new office near the New Jersey Performing Arts Center by Newark Penn Station. The change to the request comes as a bill to extend the UTHTC program moves through the New Jersey Legislature.
Prudential’s revised application proposes building near NJ Transit’s Military Park light rail station, which is one stop away from Newark Penn.
Despite the change, the project remains a good fit for the UTHTC program, which provides tax credits for businesses that relocate within a half-mile of certain transit hubs and generate new jobs. The ultimate decision lies with the Economic Development Authority (EDA), which oversees the UTHTC program. Businesses that use freight rail, develop housing, or plan large expansions near transit hubs are also eligible to apply. New Jersey estimates that the $920 million in approved tax credits (including Prudential’s initial bid), will result in $1.98 billion in capital investment, 2,380 new jobs, and over 9,000 construction jobs.
Prudential has asked the EDA to consider the revision at its April 10 meeting. The tax credit, which Prudential would receive over 10 years, hinges on whether or not the company follows through on promises to invest $444 million in the new building and create 400 new jobs.
If the EDA approves the amendment, Prudential anticipates beginning construction in mid to late 2012. They expect to complete the project and occupy the building by the end of 2014.