New Jersey Administrative Code › Title 19 - OTHER AGENCIES › NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY › Chapter 31V - ASPIRE PROGRAM RULES › Subchapter 1 - ASPIRE › Section 19:31V-1.12 - Application for tax credit transfer certificate

Current through Register Vol. 56, No. 14, July 15, 2024
(a) A developer or co-applicant may apply to
				  the Director and the Chief Executive Officer of the Authority for a tax credit
				  transfer certificate, covering one or more years, in lieu of the developer or
				  co-applicant being allowed any amount of the credit against the tax liability
				  of the developer. The tax credit transfer certificate, upon receipt thereof by
				  the developer or co-applicant from the Director and the Chief Executive Officer
				  of the Authority, may be sold or assigned, in full or in part, in an amount not
				  less than $ 25,000, in the privilege period during which the developer or
				  co-applicant receives the tax credit transfer certificate from the Director, to
				  another person, who may apply the credit against a tax liability pursuant to
				  N.J.S.A.
				  54:10A-5,
				  54:18A-2 and 3, 17:32-15, or
				  17B:23-5; provided, however, that the holder of a tax credit certificate may
				  transfer all or part of the tax credit amount, on or after the date of issuance
				  of the tax credit transfer certificate, for use by the transferee in the tax
				  period for which it was issued, and the transferee may carry forward all or
				  part of the tax credit amount in any of the next five successive tax periods.
				  Notwithstanding any provision of this section to the contrary, the amount of
				  tax credits that may be claimed by the transferee in any tax period shall not
				  exceed the total tax credit amount divided by the duration of the eligibility
				  period in years. The certificate provided to the developer or co-applicant
				  shall include a statement waiving the developer's or co-applicant's right to
				  claim the amount of the credit that the developer has elected to sell or assign
				  against the developer's tax liability.
(b) The developer or co-applicant shall not
				  sell, pledge, transfer, or assign, including a collateral assignment, a tax
				  credit transfer certificate allowed pursuant to this section for consideration
				  received by the developer or co-applicant of less than 85 percent of the
				  transferred credit amount before considering any further discounting to present
				  value which shall be permitted. The developer or co-applicant shall submit to
				  the Authority documentation evidencing the value of the tax credits that may
				  include, but not be limited to, the purchase agreement, except:
1. A developer or co-applicant of a
				  residential project consisting of newly constructed residential units may
				  assign a tax credit transfer certificate for consideration of less than 85
				  percent subject to the submission of a plan to the Authority and the agency to
				  use the proceeds derived from the assignment of tax credits to complete the
				  residential project, which plan must demonstrate that the developer or
				  co-applicant is receiving no less than 75 percent of the transfer credit amount
				  before considering any discounting to present value; and
2. Notwithstanding the provisions at (b)1
				  above, a developer or co-applicant of a residential project consisting of newly
				  constructed residential units that has received tax credits pursuant to the
				  Federal Low-Income Housing Tax Credit Program, 26 U.S.C. § 42(b)(1)(B)(i),
				  may assign a tax credit transfer certificate for consideration of no less than
				  65 percent of the transfer credit amount before discounting to present value
				  subject to the submission of a plan to the Authority and the New Jersey Housing
				  and Mortgage Finance Agency to use the proceeds derived from the assignment of
				  tax credits to complete the residential project.