New Jersey Administrative Code › Title 19 - OTHER AGENCIES › NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY › Chapter 31AA - FOOD DESERT RELIEF TAX CREDIT PROGRAM › Subchapter 1 - FOOD DESERT RELIEF TAX CREDIT PROGRAM › Section 19:31AA-1.11 - Application for tax credit transfer certificate

Current through Register Vol. 56, No. 14, July 15, 2024
(a) An applicant or co-applicant may apply to
				  the Director of the Division of Taxation in the Department of the Treasury and
				  the Chief Executive Officer of the Authority for a tax credit transfer
				  certificate, covering one or more years, in lieu of the applicant or
				  co-applicant being allowed any amount of the credit against the tax liability
				  of the applicant. The tax credit transfer certificate, upon receipt thereof by
				  the applicant 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 applicant or
				  co-applicant receives the tax credit transfer certificate from the Director, to
				  another person, who may apply the tax credit against a tax liability pursuant
				  to N.J.S.A. 54:10A-5,
				  54:18A-2 and
				  54:18A-3,
				  17:32-15, or
				  17B:23-5. The certificate
				  provided to the applicant or co-applicant shall include a statement waiving the
				  applicant's or co-applicant's right to claim the amount of the credit that the
				  applicant or co-applicant has elected to sell or assign against the applicant's
				  or co-applicant's tax liability.
(b) The applicant or co-applicant shall not
				  sell or assign, including a collateral assignment, a tax credit transfer
				  certificate allowed pursuant to this section for consideration received by the
				  applicant 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 applicant 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.
(c) The tax credit transfer certificate
				  issued to an applicant or co-applicant by the Director shall be subject to any
				  limitations and conditions imposed on the application of original State tax
				  credits issued pursuant to the Act and any other terms and conditions that the
				  Director may prescribe including, but not limited to, any applicable statutes
				  of limitations for claiming a refund or credit.
(d) A purchaser or assignee of a tax credit
				  transfer certificate pursuant to this section shall not make any subsequent
				  transfers, assignments, or sales of the tax credit transfer certificate. If a
				  lender that holds a tax credit certificate as collateral on a redevelopment
				  project forecloses on the project, the foreclosure and resulting transfer of
				  the certificate shall not be considered a sale of the transfer
				  certificate.
(e) The Authority
				  shall publish, on its Internet website, the following information concerning
				  each tax credit transfer certificate approved by the Authority and the Director
				  pursuant to this section:
1. The name of the
				  transferor;
2. The name of the
				  transferee;
3. The value of the tax
				  credit transfer certificate;
4. The
				  State tax against which the transferee may apply the tax credit; and
5. The consideration received by the
				  transferor.