New Jersey Administrative Code › Title 19 - OTHER AGENCIES › NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY › Chapter 31X - EVERGREEN › Subchapter 1 - EVERGREEN › Section 19:31X-1.4 - Sale of tax credits

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The
				  Authority shall auction up to $ 300,000,000 in tax credits against State tax
				  liability pursuant to section 5 at P.L. 1945, c. 162 (N.J.S.A.
				  54:10A-5) in annual amounts not to exceed the
				  limitations set forth in section 98 at
				  P.L.
				  2020, c. 156
				  (N.J.S.A.
				  34:1B-362). The Authority shall not undertake
				  an auction if, exclusive of all reserves pursuant to N.J.A.C. 19:31X-1.3(e),
				  more than $ 15,000,000 is available to the Authority, from moneys received from
				  any prior auction of tax credits pursuant to the program, to allocate to
				  qualified venture firms.
(b) The
				  Authority shall sell the tax credits authorized pursuant to section 22 at
				  P.L.
				  2020, c. 156
				  (N.J.S.A.
				  34:1B-290) and (a) above to tax credit
				  purchasers through a competitive auction process. Except when the amounts in
				  the Fund exceeds the minimum as provided in section 22 at
				  P.L.
				  2020, c. 156
				  (N.J.S.A.
				  34:1B-290) and (a) above, the Authority shall
				  hold one competitive auction per calendar year.
(c) The Authority may contract with an
				  independent third party to conduct the competitive bidding process through
				  which State tax credits issued by the Authority may be sold.
(d) Prior to a competitive auction, the
				  Authority shall establish the dates for the competitive auction and the
				  weighted criteria the Authority will utilize to evaluate tax credit bids. The
				  Authority shall base the criteria on the price offered to purchase the tax
				  credits and the quality of the commitment to mentorship and networking
				  opportunities and other support of the State's innovation ecosystem. The
				  Authority may also determine whether to request a best and final offer process.
				  The Authority shall provide public notice of the dates and weighted criteria
				  through its website in advance of the competitive auction.
(e) To be considered for an award of a tax
				  credit under the program, a potential tax credit purchaser shall submit a tax
				  credit bid application, which shall include the following information in an
				  application format prescribed by the Authority:
1. The name, secondary or doing business as
				  name(s), address, entity form, country and state of formation, date of
				  formation, Federal and state tax identification number, phone number, and
				  website address of the potential tax credit purchaser;
2. The name, title, email, address, and phone
				  number of the primary point of contact authorized by the potential tax credit
				  purchaser to submit the application to the Authority;
3. The name, title, email, address, and phone
				  number of any legal counsel, accountant, and consultant assisting the potential
				  tax credit purchaser with the tax credit bid application;
4. Description of the potential tax credit
				  purchaser and its business;
5.
				  Legal structure of the potential tax credit purchaser;
6. The names of all venture firms managed by
				  potential tax credit purchasers; all venture firms of which the potential tax
				  credit purchaser beneficially owns, through rights, options, convertible
				  interests, or otherwise, more than 15 percent of the voting securities or other
				  voting ownership interests; and all venture firms for which the potential tax
				  credit purchaser controls the direction of investments;
7. The tax credit purchase offer consisting
				  of:
i. The requested amount of tax credits,
				  which shall not be less than $ 500,000; and
ii. The percentage amount the potential tax
				  credit purchaser will pay in exchange for the requested amount of tax credits,
				  which shall not be less than 75 percent of the requested dollar amount of tax
				  credits;
8. Commitment
				  to serve on the New Jersey Innovation Evergreen Advisory Board, established
				  pursuant to section 32 at
				  P.L.
				  2020, c. 156
				  (N.J.S.A.
				  34:1B-300) and N.J.A.C. 19:31X-1.13(a), if
				  appointed, and to comply with the requirements of such appointment as set forth
				  at N.J.A.C. 19:31X-1.13(b), along with the name, title, phone number, address,
				  and email of the proposed tax credit purchaser representative to the New Jersey
				  Innovation Evergreen Advisory Board;
9. The strategic commitment, which shall
				  specifically describe each activity and provide the financial cost to the
				  potential tax credit purchaser of each activity;
10. A tax clearance certificate from the New
				  Jersey Division of Taxation pursuant to
				  P.L.
				  2007, c. 101, which
				  shall also satisfy the requirement for registration to do business in this
				  State;
11. A completed legal
				  questionnaire disclosing all relevant legal matters, in accordance with the
				  Authority debarment and disqualification rules at N.J.A.C. 19:30-2;
12. An agreement by the potential tax credit
				  purchaser that, subject to the terms of the program, its tax credit bid
				  application and terms contained therein, shall be binding on the potential tax
				  credit purchaser for 120 days following submitting its tax credit bid
				  application;
13. A list of all of
				  the New Jersey Department of Labor and Workforce Development, the Department of
				  Environmental Protection, and the Department of the Treasury permits and
				  approvals or obligations and responsibilities with which the potential tax
				  credit purchaser is associated with or has an interest in. The list shall
				  identify the entity that applied for or received such permits and approvals or
				  have such obligations and responsibilities, such as by program interest numbers
				  or licensing numbers. The potential tax credit purchaser shall also submit a
				  written certification by an individual with authority to execute and bind the
				  tax credit purchaser to the tax credit purchaser contract, stating that the
				  potential tax credit purchaser satisfies the criteria at N.J.A.C. 19:31X-1.7(e)
				  to be in substantial good standing, or if a compliance issue exists, has
				  entered into an agreement, with the respective department within the Department
				  of Labor and Workforce Development, the Department of Environmental Protection,
				  and the Department of the Treasury;
14. A list of all the development subsidies,
				  as defined at
				  P.L.
				  2007, c. 200, that the
				  potential tax credit purchaser is requesting or receiving, the name of the
				  granting body, the value of each development subsidy, and the aggregate value
				  of all development subsidies requested or received;
15. A certification by an individual with
				  authority to execute and bind the tax credit purchaser to the tax credit
				  purchaser contract, of the potential tax credit purchaser that the officer has
				  reviewed the tax credit bid application information submitted and that the
				  information contained in the application is true and accurate under penalty of
				  perjury; and
16. Any other
				  information that the Chief Executive Officer of the Authority determines is
				  necessary to review a tax credit bid application under this
				  program.