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-1.10 - Reduction, forfeiture, and recapture of tax credits

Current through Register Vol. 56, No. 14, July 15, 2024
(a) If, during the eligibility period, the
				  applicant ceases to operate the project as a supermarket or grocery store, the
				  supermarket or grocery store ceases to operate on a full-time basis, or the
				  project ceases to meet the criteria at N.J.A.C. 19:31AA-1.3(a)7, the applicant
				  and any co-applicant may forfeit or be subject to recapture for all or some of
				  the incentive award.
(b) During the
				  commitment period, the Authority may recapture a proportionate amount of the
				  tax credit if the project ceases to be a supermarket or grocery store, the
				  supermarket or grocery store ceases to operate on a full-time basis, or the
				  project ceases to meet the criteria at N.J.A.C. 19:31AA-1.3(a)7.
(c) If the supermarket or grocery store is
				  disqualified from the Supplemental Nutrition Assistance Program (SNAP) or is
				  subject to a Federal sanction leading to disqualification from the Special
				  Supplemental Nutrition Program for Women, Infants, and Children (WIC), then the
				  applicant and any co-applicant shall forfeit all credits for the relevant tax
				  period and each subsequent tax period and the Authority shall recapture a
				  proportionate amount of the tax credit.
(d) If any labor harmony agreement
				  requirement pursuant to N.J.A.C. 19:31AA-1.8(d) is not satisfied during the
				  relevant tax period, then the applicant and any co-applicant shall forfeit, or
				  the Authority shall recapture some or all of the tax credits for the tax period
				  in which the labor harmony agreement requirements are not satisfied and each
				  subsequent tax period until the first tax period for which documentation
				  demonstrating compliance has been reviewed and approved by the Authority, for
				  which tax period and each subsequent period the full amount of the credit shall
				  be allowed.
(e) As of the date of
				  the annual report pursuant to N.J.A.C. 19:31AA-1.9, if any worker employed to
				  perform construction work at the project is paid less than the prevailing wage
				  rate for the worker's craft or trade during the relevant tax period as required
				  pursuant to N.J.A.C. 19:31AA-1.13(b), then the applicant and any co-applicant
				  shall forfeit, or the Authority shall recapture some or all of the tax credits
				  for the tax period in which the prevailing wage is not paid and each subsequent
				  tax period until the first tax period for which documentation demonstrating
				  compliance has been reviewed and approved by the Authority, for which tax
				  period and each subsequent period the full amount of the credit shall be
				  allowed.
(f) If, based on new
				  information, the Authority determines that forfeiture or recapture should have
				  been applicable pursuant to any of the provisions in this section, the
				  Authority shall recapture some or all of the tax credits for the relevant tax
				  period(s).
(g) If, at any time, the
				  Authority determines that the applicant or co-applicant made a material
				  misrepresentation on the applicant's application, project completion
				  certification, annual report, or any related submissions, the applicant and any
				  co-applicant shall forfeit, and the Authority may recapture any or all of the
				  incentive award and all tax credits awarded pursuant to the Program, which
				  shall be in addition to any other remedies in the incentive award agreement and
				  any criminal or civil penalties to which the applicant, co-applicant, and the
				  respective officers may be subject.
(h) Any recapture amount pursuant to this
				  section may include interest on the recapture amount, at a rate equal to the
				  statutory rate for tax deficiencies, plus any statutory penalties, and all
				  costs incurred by the Authority and the Division of Taxation in the Department
				  of the Treasury in connection with the pursuit of the recapture, including, but
				  not limited to, counsel fees, court costs, and other costs of collection. The
				  Authority shall confer with the Division of Taxation to determine the recapture
				  amount.
(i) If all or part of a tax
				  credit sold or assigned pursuant to
				  N.J.S.A.
				  34:1B-331 and N.J.A.C. 19:31AA-1.11(a) is
				  subject to recapture, then the Authority shall pursue recapture from the
				  applicant, and to the extent the co-applicant is involved with the basis for
				  the recapture, any co-applicant, and not from the purchaser or assignee of the
				  tax credit transfer certificate.
(j) Any funds recaptured pursuant to this
				  section, including penalties and interest, shall be deposited into the General
				  Fund of the State.