New Jersey Administrative Code › Title 19 - OTHER AGENCIES › NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY › Chapter 31T - GARDEN STATE FILM AND DIGITAL MEDIA JOBS PROGRAM › Subchapter 1 - GARDEN STATE FILM AND DIGITAL MEDIA JOBS PROGRAM › Section 19:31T-1.9 - Recapture and reduction of tax credits

Current through Register Vol. 56, No. 14, July 15, 2024
(a) If a studio partner fails to occupy the
				  production facility developed, purchased, or leased as a condition of
				  designation as a studio partner for the duration of the commitment period or
				  otherwise fails to satisfy the conditions for designation as a studio partner,
				  the Authority shall revoke the designation of the studio partner and recapture
				  the portion of the tax credit from the studio partner that was only available
				  to the studio partner or any film production company by virtue of the studio
				  partner's designation as a studio partner, and all the studio partner's films
				  for which an initial approval has been given, but for which the Authority has
				  not given final approval, shall terminate.
(b) If a film-lease partner facility fails to
				  operate the production facility developed, purchased, or leased as a condition
				  of designation as a film-lease partner facility or otherwise fails to satisfy
				  the conditions for designation as a film-lease partner facility for the
				  duration of the five-year period, the Authority shall revoke the designation of
				  the film-lease partner facility and recapture the portion of the tax credit
				  from the film-lease partner facility that was only available to film-lease
				  production companies by virtue of the film-lease partner facility's designation
				  as a film-lease partner facility, and all films from film-lease production
				  companies that relied on the film-lease partner facility designation for which
				  an initial approval has been given, but for which the Authority has not given
				  final approval, shall terminate.
(c) If an approved applicant has received tax
				  credits on the basis of deferred compensation and the supplemental report from
				  the independent certified public accountant does not evidence actual payment of
				  the deferred compensation, the Authority shall recapture the amount of the tax
				  credit that was based on the projected deferred compensation. If the approved
				  applicant fails to submit the supplemental report by the date required, the
				  Authority shall recapture all of the tax credit based on the projected deferred
				  compensation.
(d) If, at any time,
				  the Authority determines that a designated studio partner or film-lease partner
				  facility made a material misrepresentation on its application or any submission
				  pursuant to this program, the Authority shall revoke the designation and studio
				  partner or film-lease partner facility shall forfeit, and the Authority may
				  recapture any or all of, the tax credits awarded to the studio partner or any
				  film production company approved for tax credits by virtue of the designation,
				  which shall be in addition to any other remedies in any approval letter, award
				  agreement, and any criminal or civil penalties to which the approved applicant
				  and the respective officer may be subject.
(e) If, at any time, the Authority determines
				  that an approved applicant for a tax credit made a material misrepresentation
				  on the approved applicant's application or any submission pursuant to this
				  program, the approved applicant shall forfeit, and the Authority may recapture
				  any or all of, the tax credits awarded pursuant to the program, which shall be
				  in addition to any other remedies in any approval letter, award agreement, and
				  any criminal or civil penalties to which the approved applicant and the
				  respective officer may be subject.
(f) Any funds recaptured pursuant to this
				  section, including penalties and interest, shall be deposited into the General
				  Fund of the State.