New Jersey Administrative Code › Title 19 - OTHER AGENCIES › NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY › Chapter 31Z - BROWNFIELDS REDEVELOPMENT INCENTIVE PROGRAM › Subchapter 1 - BROWNFIELDS REDEVELOPMENT INCENTIVE PROGRAM › Section 19:31Z-1.15 - Forfeiture and recapture of tax credits

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Failure to timely submit the annual
				  report or progress report, pursuant to N.J.A.C. 19:31Z-1.11, absent extenuating
				  circumstances or the written approval of the Authority, may result in
				  forfeiture or recapture of a proportional amount of the tax credit
				  award.
(b) In any year in which the
				  developer is not in substantial good standing with the Department of Labor and
				  Workforce Development, the Department of Environmental Protection, or the
				  Department of the Treasury pursuant to N.J.A.C. 19:31Z-1.9(c)13, the developer
				  may forfeit or recapture some or all of the tax credit award.
(c) If any worker employed to perform
				  building services work at the redevelopment project is paid less than the
				  prevailing wage rate for the worker's craft or trade pursuant to
				  P.L.
				  2007, c. 245
				  (N.J.S.A.
				  34:1B-5.1) and N.J.A.C. 19:31Z-1.14(c) during
				  the relevant tax period, then the developer shall forfeit or the Authority
				  shall recapture, a proportional amount of the tax credit.
(d) If the labor harmony agreement
				  requirement pursuant to N.J.A.C. 19:31Z-1.9(d) is not satisfied, the developer
				  shall forfeit or recapture some or all of the tax credit award.
(e) For a redevelopment project that includes
				  redevelopment activities after completion of the remediation required for the
				  redevelopment project, if the developer does not complete the redevelopment
				  project after the issuance of the tax credits or if the developer does not
				  comply with a requirement of the Program applicable to the redevelopment
				  project after completion of the remediation, including, but not limited to,
				  prevailing wage or affirmative action requirements pursuant to N.J.A.C.
				  19:31Z-1.14(a) and (b), the Authority may recapture some or all of the tax
				  credits awarded.
(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 the tax credits as if the Authority had been timely
				  informed.
(g) If, at any time, the
				  Authority determines that the developer made a material misrepresentation on
				  the developer's application, progress report, remediation completion
				  certification, annual report, or any submission to the Authority or the
				  Department, the developer shall forfeit or the Authority shall recapture, some
				  or all of the tax credits of the developer, which shall be in addition to any
				  other remedies in the redevelopment agreement and any criminal or civil
				  penalties to which the developer and the respective officer of the developer
				  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, administrative costs, counsel fees,
				  court costs, and other costs of collection. The Authority shall confer with the
				  Division of Taxation in the Department of the Treasury to determine the
				  recapture amount.
(i) If all or
				  part of a tax credit sold or assigned pursuant to section 17 at
				  P.L.
				  2020, c. 156
				  (N.J.S.A.
				  34:1B-285) and N.J.A.C. 19:31Z-1.13 is
				  subject to recapture, the Authority shall pursue recapture from the developer,
				  and not from the purchaser or assignee of the tax credit transfer
				  certificate.
(j) The Authority
				  shall notify the Director of any funds recaptured pursuant to this section. Any
				  recaptured funds, including penalties and interest, shall be deposited into the
				  State General Fund.