The New Jersey Economic Development Authority (NJEDA) Board has approved the Cultural and Arts Facilities Expansion (CAFE) Program. This initiative is designed to enhance New Jersey's arts sector by supporting the development and rehabilitation of cultural arts facilities, including performing arts centers and museums. The program aims to increase cultural arts activities throughout the state, attract visitors, boost engagement with the arts in underserved communities, and revitalize downtown areas.
"Arts and culture serve as a cornerstone of New Jersey’s economy, contributing billions of dollars in economic activity each year while showcasing the incredible diversity, creativity, and talent of our residents," stated NJEDA Chief Executive Officer Tim Sullivan. He added that under Governor Phil Murphy's leadership, New Jersey continues to provide innovative tools and resources to further position arts and culture as a key driver of economic growth. The CAFE Program is expected to address economic challenges faced by the industry since the pandemic by fostering new cultural hubs across the state.
In 2022, New Jersey’s arts and culture sector was valued at $27.3 billion, supporting over 138,000 jobs. These industries accounted for 3.62 percent of New Jersey’s gross domestic product and 3.2 percent of its workforce. Additionally, they generated $116.9 million in total tax revenue for federal, state, and local governments.
The CAFE Program will offer tax credits through a competitive process to cultural arts institutions for building or renovating facilities such as aquariums, historical societies, libraries, galleries, museums, performing arts centers or other eligible cultural or arts facilities. Eligible awardees can receive tax credits covering up to 100 percent of project costs up to $75 million.
Assembly Speaker Craig J. Coughlin emphasized the importance of this initiative: "This initiative underscores our commitment to building strong communities and laying the foundation for residents and families to truly thrive." He highlighted that fostering these environments would revive spaces where arts and culture can inspire and unite all who call New Jersey home.
Eligible applicants include government entities, not-for-profits with a primary mission in arts and culture or for-profit businesses receiving federal or state historic preservation rehabilitation tax credits. Applicants must contribute either 10 percent or 20 percent equity depending on project location.
Projects must have at least $5 million in eligible costs to qualify. Cultural facilities need to be open to the public for an average of at least 20 hours per week or host an average of four events or educational offerings monthly. Facilities primarily used for athletics or non-arts-based community centers are not eligible.
Applications for the first round of funding under this program are anticipated to open in Spring 2025.
