New Jersey Administrative Code › Title 19 - OTHER AGENCIES › NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY › Chapter 31H - URBAN TRANSIT HUB TAX CREDIT PROGRAM › Subchapter 1 - URBAN TRANSIT HUB TAX CREDIT PROGRAM › Section 19:31H-1.1 - Applicability and scope

Current through Register Vol. 56, No. 14, July 15, 2024
The rules in this chapter are promulgated by the New Jersey
					 Economic Development Authority (the Authority) to implement the Urban Transit
					 Hub Tax Credit Act,
					 P.L.
					 2007, c. 346 (the Act),
					 as amended at
					 P.L.
					 2009, c. 90. The Act
					 establishes a tax credit program for capital investments and increased
					 employment in targeted urban rail transit hubs to catalyze economic development
					 in those transit hubs. The Act further provides that the Urban Transit Hub Tax
					 Credit Program (the Program) is to be administered by the New Jersey Economic
					 Development Authority and that the Authority consults with the Director of the
					 Division of Taxation in the Department of the Treasury when adopting rules for
					 the Program. The Program provides that businesses making at least $ 50,000,000
					 in new capital investments in a qualified business facility in an "urban
					 transit hub" and employing at least 250 full-time employees at that facility
					 may be eligible for tax credits in order to catalyze economic development in
					 those urban areas. The tax credits are equal to 100 percent of the claimant's
					 qualified capital investments made, and taxpayers may apply 10 percent of the
					 total credit amount per year over a 10-year period against their corporation
					 business tax or insurance premiums tax. Tenants in qualified business
					 facilities may also receive tax credits, if they occupy space in a qualified
					 business facility that proportionally represents at least $ 17,500,000 of the
					 capital investment in the facility and employ at least 250 full-time employees
					 in that facility. Developers that previously applied for the 20 percent credit
					 of their capital investment in a qualified residential project may reapply
					 provided the project meets the statutory criteria that it is likely to be
					 realized with the provision of tax credits at the level requested, but is not
					 likely to be accomplished by private enterprise without the tax credits.
					 Finally, businesses may apply for a credit for their capital investment in a
					 qualified business facility that is part of a mixed-use project and developers
					 may apply for a credit for their capital investment in a qualified residential
					 project that includes a mixed use project, but not for both a residential
					 project and mixed use project separately. The tax credits are reduced to 80
					 percent if 200 new jobs (to the State) are not created, or forfeited if certain
					 facility and Statewide employment levels are not maintained. The program is
					 limited to municipalities that are eligible for urban aid, that had at least 30
					 percent of their real property value exempt from property taxes during 2006,
					 and that have a specified commuter rail station, excluding any rail station
					 located at an international airport.