New Jersey Administrative Code › Title 19 - OTHER AGENCIES › NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY › Chapter 31X - EVERGREEN › Subchapter 1 - EVERGREEN › Section 19:31X-1.6 - Tax credit transfer certificate

Current through Register Vol. 56, No. 14, July 15, 2024
(a)
				  A tax credit purchaser may apply to the Authority and the Director for a tax
				  credit transfer certificate, in the privilege period during which the Director
				  allows the tax credit purchaser a tax credit pursuant to N.J.A.C.
				  19:31X-1.5(b), in lieu of the tax credit purchaser being allowed to apply any
				  amount of the tax credit against the tax credit purchaser's State tax
				  liability. A tax credit may be sold or assigned, in full or in part, to another
				  person that may have a tax liability pursuant to section 5 at P.L. 1945, c. 162
				  (N.J.S.A.
				  54:10A-5), in an amount not less than $
				  100,000. The tax credit transfer certificate provided to the tax credit
				  purchaser shall include a statement waiving the tax credit purchaser's right to
				  claim the credit that the tax credit purchaser has elected to sell or assign.
				  If all or part of a tax credit sold or assigned is subject to recapture, then
				  the Authority shall pursue recapture from the initial tax credit purchaser and
				  not from the subsequent purchaser or assignee of the tax credit transfer
				  certificate.
(b) The tax credit
				  purchaser shall not sell or assign a tax credit transfer certificate allowed
				  pursuant to this section for consideration received by the tax credit purchaser
				  of less than 85 percent of the transferred credit amount before considering any
				  further discounting to present value that shall be permitted. The tax credit
				  transfer certificate issued to a tax credit purchaser by the Director shall be
				  subject to any limitations and conditions imposed on the application of State
				  tax credits pursuant to section 26 at
				  P.L.
				  2020, c. 156
				  (N.J.S.A.
				  34:1B-294), this subchapter, 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.
(c) A buyer 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.
(d) Ten percent of the
				  consideration received by a tax credit purchaser from the sale or assignment of
				  a tax credit transfer certificate pursuant to this section shall be remitted to
				  the Director prior to the issuance of the tax credit transfer certificate. The
				  Director shall deposit the funds in the General Fund of the State.
(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.
				  That the tax credit may be applied against State tax liability pursuant to
				  section 5 at P.L. 1945, c. 162 (N.J.S.A. 54:10A-5);
				  and
5. The consideration paid by
				  the transferee, identified as the consideration received by the transferor and
				  the amount paid to the State pursuant to (d) above.