New Jersey Administrative Code › Title 19 - OTHER AGENCIES › NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY › Chapter 31K - TECHNOLOGY BUSINESS TAX CERTIFICATE TRANSFER PROGRAM › Subchapter 1 - TECHNOLOGY BUSINESS TAX CERTIFICATE TRANSFER PROGRAM › Section 19:31K-1.4 - Application to the program

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Each
				  application submitted by a selling business to the program shall be accompanied
				  by a non-refundable $ 1,000 application fee. Complete applications must be
				  received by June 30 for each State fiscal year.
(b) In order for the Department of Treasury,
				  Division of Taxation to issue a certificate, each application submitted to the
				  program shall include: a selling business application which includes the
				  information set forth in (c) below; a spending certification form attesting to
				  having spent the proceeds of the prior year's sale of tax benefits in
				  accordance with the definition of allowable expenditures; a Buying Business
				  Information Sheet which identifies the buying business name, address, telephone
				  number, the estimated value of benefits to be transferred in an amount equal to
				  at least 80 percent of the surrendered tax benefit and from whom and a business
				  certification; an agreement between the buying and selling business defining
				  the terms of the sale of the certificate; and the Tax Benefit Identification
				  Form which summarizes the accumulated net operating losses and research and
				  development credits authorized to be sold and the value intended to be sold.
				  For determination of eligibility for the program, the initial application
				  package shall also include a selling business application and a spending
				  certification form.
(c) In addition
				  to the material specified in (b) above, a completed application shall include,
				  but is not limited to:
1. A description of
				  the nature of the business conducted by the company;
2. A company business plan;
3. Financial statements for the two most
				  recent full years of operation;
4.
				  A list of all affiliates and subsidiaries as reflected on the consolidated
				  financial statements of the applicant and the number and location of all
				  employees of such corporation(s);
5. A list of all entities and affiliated
				  groups of corporations that directly or indirectly own or control 50 percent or
				  greater of the selling business, the number and location of all employees of
				  any such entity and affiliated group of corporations, and the two most recent
				  full years of financial statements for each such entity and affiliated group of
				  corporations that must report net operating income in its financial
				  statements;
6. A list of all
				  entities that form a consolidated group of affiliated corporations, as filed
				  for Federal income tax purposes, the number and location of all employees of
				  such corporation(s), and financial statements for the two most recent full
				  years of operation;
7. A
				  representation as to the location of the applicant's primary place of business
				  in an Innovation Zone;
8. A
				  description of the applicant's technology or biotechnology business which shall
				  demonstrate that such business is the primary business of the applicant and
				  that the applicant meets the other criteria of the definition of technology or
				  biotechnology business. Where applicable, documentation of protected
				  proprietary intellectual property must be provided;
9. A list of all full-time employees employed
				  in this State, including Social Security number for each, address on record
				  with the applicant for each employee, whether the employee has submitted a
				  Certificate of Non-residence for an exemption from the New Jersey Gross Income
				  Tax, whether any employee is pursuing a higher education degree, if so known to
				  the applicant, whether any employee is related, as defined in Section
				  152(d)(2) of the
				  Internal Revenue Code, to any other employee, shareholder, or investor if so
				  know to the applicant, and copies of most recent year's Federal and New Jersey
				  W-3 forms for applicant, parent company, and all related entities, or
				  documentation from a professional employer organization summarizing W-2 forms
				  issued on behalf of the applicant, parent company, and all related entities in
				  New Jersey and in the United States for the calendar year prior to the year in
				  which the company files its application and at the time of the
				  application;
10. The employment
				  offer letter, resume, and job description for every employee hired in the
				  current year;
11. A list of 100
				  percent of ownership of the applicant by percentage;
12. A copy of the certificate of
				  incorporation/formation for the applicant and its earliest predecessor entity;
				  and
13. Any other supplemental
				  information required by the Authority.