Newark’s Prudential Center could soon be seeing $300 million in tax subsidies for help with renovations. The tax break is quickly moving through the New Jersey Legislature.
An Assembly committee advanced the bill this week, clearing a key hurdle for legislation that would expand New Jersey’s corporate tax incentive programs. It would carve out a major financial benefit for Prudential Center, home of the New Jersey Devils, the New York Sirens of the PWHL, and a major concert destination.
Supporters of the incentive argue the investment is necessary to keep the venue competitive in a crowded regional market.
Large-scale renovations are seen as unavoidable due to the 19-year-old building’s age, heavy use, and more.
The project would be required to generate economic activity well above the value of the tax credits, a safeguard aimed to protect taxpayers while preserving a major economic engine in New Jersey’s most populous city.
However, critics aren’t convinced.
Opponents warn that public subsidies for sports and entertainment venues rarely deliver the expected returns—arguing the bill singles out one project at a time when New Jersey is already facing a widening budget gap. With just weeks to go until Mikie Sherrill takes office, some lawmakers have raised concerns about pushing through a major tax break during a lame-duck legislative session.
The current legislative session ends in mid-January, creating a narrow window to move the bill forward during the session. If approved, it could land on Governor Murphy’s desk just days before his term ends.
Beyond the arena itself, the bill would inject billions more into existing economic development incentive programs, expanding the scope of state-backed subsidies at a moment when advocates for affordability and social services say resources are already stretched to their limits.
What happens next could determine not just the future of the Prudential Center, but how aggressively New Jersey continues to use tax incentives as an economic development tool.
The New Jersey Digest is a new jersey magazine that has chronicled daily life in the Garden State for over 10 years.