New Jersey Administrative Code › Title 19 - OTHER AGENCIES › NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY › Chapter 31X - EVERGREEN › Subchapter 1 - EVERGREEN › Section 19:31X-1.5 - Tax credit purchaser contract

Current through Register Vol. 56, No. 14, July 15, 2024
(a)
				  A tax credit purchaser that submits a successful bid for the purchase of tax
				  credits pursuant to section 24 at
				  P.L.
				  2020, c. 156
				  (N.J.S.A.
				  34:1B-292) and N.J.A.C. 19:31X-1.4 shall
				  enter into a contract with the Authority that includes payment information and
				  the strategic commitment. The tax credit purchaser contract shall include, but
				  shall not be limited to, the following:
1.
				  The face value of the purchased tax credits and the price paid by the tax
				  credit purchaser in exchange for such awarded tax credits;
2. The privilege period in which the tax
				  credit purchaser may apply the awarded tax credit;
3. A detailed description of the tax credit
				  purchaser's strategic commitment approved by the Authority in awarding any tax
				  credits under the program;
4. A
				  requirement that the tax credit purchaser comply with the strategic commitments
				  made in its auction bid and a provision requiring the tax credit purchaser to
				  repay all, or part, of the value of the strategic commitment as set forth at
				  N.J.A.C. 19:31X-1.10(a);
5. A
				  requirement for the tax credit purchaser to report, annually, on the status of
				  each component of the strategic commitments made in its auction bid until the
				  component is completed and to provide, within 30 days of completion of the
				  component, verification that the tax credit purchaser completed the activities
				  for that component;
6. An ongoing
				  requirement to provide the Authority with information that will enable the
				  Authority to administer the program;
7. An agreement that the refundable deposit
				  provided pursuant to N.J.A.C. 19:31X-1.4(f) shall become non-refundable on the
				  effective date of the tax credit purchaser contract;
8. An agreement to remit, within 30 business
				  days of the effective date of the tax credit purchaser contract, to the
				  Authority through a wire transfer of immediately available funds, the balance
				  of its tax credit purchase offer;
9. An agreement to provide a representative
				  to serve on the New Jersey Innovation Evergreen Advisory Board, established
				  pursuant to section 32 at
				  P.L.
				  2020, c. 156
				  (N.J.S.A.
				  34:1B-300) and N.J.A.C. 19:31X-1.13(a), and
				  to provide the name, title, phone number, address, and email of the proposed
				  tax credit purchaser representative to the New Jersey Innovation Evergreen
				  Advisory Board;
10. A covenant by
				  the tax credit purchaser that during the 12-month period after the approval of
				  the award of tax credits, the tax credit purchaser shall not cause a qualified
				  venture firm that the tax credit purchaser manages; beneficially owns, through
				  rights, options, convertible interests, or otherwise, more than 15 percent of
				  the voting securities or other voting ownership interests; or controls the
				  direction of investments to apply for a qualified investment, and an
				  acknowledgement that, pursuant to (d) below, the Authority shall not approve
				  such a qualified investment or follow-up investment for any such qualified
				  venture firm;
11. A provision
				  permitting an audit of the records of the tax credit purchaser supporting the
				  strategic commitment activities, from time to time, as the Authority deems
				  necessary;
12. A provision
				  permitting the Authority to amend the agreement;
13. A provision establishing the conditions
				  under which the Authority, the tax credit purchaser, or both, may terminate the
				  agreement;
14. Indemnification and
				  insurance requirements;
15. Default
				  and remedies, including, but not limited to, a default if a tax credit
				  purchaser made a material misrepresentation on its application or if the
				  Authority debars or disqualifies the tax credit purchaser pursuant to N.J.A.C.
				  19:30-2; and
16. Such other
				  provisions as shall be required by the Authority.