New Jersey Administrative Code › Title 19 - OTHER AGENCIES › NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY › Chapter 31U - EMERGE › Subchapter 1 - EMERGE › Section 19:31U-1.15 - Effect of sale or lease of qualified facilities and relocation of qualified business facility

Current through Register Vol. 56, No. 14, July 15, 2024
(a) A small
				  business may move its qualified business facility, upon prior notice to the
				  Authority, provided that the business remains in New Jersey during the
				  commitment period and, for the purposes of this subsection, the tax credit
				  calculation for each new or retained job will be recalculated for the new
				  location, but the tax credit amount shall not be greater than the amount
				  approved.
(b) Except for a small
				  business:
1. If the qualified business
				  facility is sold in whole or in part during the eligibility period, the new
				  owner shall not acquire the capital investment of the seller, provided,
				  however, that any tax credits of tenants shall remain unaffected. If the
				  business merges or consolidates with another entity, the resulting or
				  transferee entity shall not be considered the new owner. The seller shall
				  forfeit all tax credits for the tax period in which the sale occurs and all
				  subsequent tax periods, provided, however, that an eligible business may change
				  the location of the qualified business facility if:
i. The new facility:
(1) Meets all applicable location qualifying
				  criteria and has a gross leasable area not less than the gross leasable area of
				  the qualified business facility initially approved by the Authority, and the
				  alternate qualified business facility meets the minimum capital investment and
				  sustainability requirements of the program; or
(2) Does not meet all applicable location
				  qualifying criteria or has less gross leasable area than the gross leasable
				  area of the qualified business facility initially approved by the Authority, if
				  the alternate qualified business facility meets the minimum capital investment
				  and sustainability requirements of the program. The Authority shall require a
				  cost comparison of the originally approved location and the alternate qualified
				  business facility illustrating the economics of the occupancy at the alternate
				  proposed qualified business facility location for the remaining duration of the
				  commitment period compared to the economics of continuing occupancy at the
				  qualified business facility proposed to be vacated. The alternate proposed
				  qualified business facility must be 90 percent or more of the aggregate cost of
				  the qualified business facility proposed to be vacated. If less than 90
				  percent, the Authority shall review the business's decision to relocate,
				  including supporting documentation evidencing the reasons for relocation, to
				  determine if the relocation to the alternate qualified business facility is
				  consistent with the Board's approval of the application for the qualified
				  business facility to be vacated. The Authority shall recalculate the net
				  positive economic benefit of the project to reflect the economics of occupancy
				  at the alternate proposed location for the remaining duration of the net
				  positive economic benefit test period. The award of tax credits shall be
				  reduced consistent with the variations in qualifying criteria for the alternate
				  qualified business facility location, as well as in a manner consistent with
				  the revised net positive economic benefit
				  calculation.