New Jersey Administrative Code › Title 19 - OTHER AGENCIES › NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY › Chapter 31U - EMERGE › Subchapter 1 - EMERGE › Section 19:31U-1.11 - Tax credit amount; application and allocation of the tax credit

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Except for a
				  small business that will have incremental or additional tax credits pursuant to
				  a growth plan pursuant to N.J.A.C. 19:31U-1.10(f), for each tax accounting or
				  privilege period during the eligibility period, a business may apply the amount
				  of tax credits equal to the total credit amount divided by the duration of the
				  eligibility period in years (fractions of a cent rounded down) subject to the
				  provisions of the Act and this subchapter. Except as set forth at N.J.A.C.
				  19:31U-1.10(f), the total tax credit amount that a business may apply for each
				  year shall not exceed the maximum annual amount determined by the Board at
				  approval pursuant to N.J.A.C. 19:31Q-1.7(g) and 19:31U-1.8.
(b) Upon notification to the Director by the
				  Authority, the Director shall allow the eligible business a tax credit. The
				  eligible business may apply the credit allowed by the Director against the
				  eligible business's tax liability for the tax period in which the Director
				  allowed the tax credit or may carry forward the credit for use by the eligible
				  business in any of the next seven successive tax periods, which credit shall
				  thereafter expire.
(c) The amount
				  of credit allowed may be applied against the tax liability otherwise due
				  pursuant to section 5 of P.L. 1945, c. 162 (N.J.S.A.
				  54:10A-5); sections 2 and 3 of P.L. 1945, c.
				  132 (N.J.S.A. 54:18A-2 and
				  54:18A-3); section 1 of P.L. 1950,
				  c. 231 (N.J.S.A. 17:32-15); or
				  N.J.S.A.
				  17B:23-5.
(d) Credits granted to a partnership shall be
				  passed through to the corporate partners, corporate members, or corporate
				  owners, respectively, pro-rata, or pursuant to an executed agreement among all
				  partners, members, or owners documenting an alternate distribution method
				  provided to the Director accompanied by any additional information as the
				  Director may prescribe consistent with any rule, guidance, or other publication
				  issued by the Division of Taxation.
1. With
				  respect to credits passed through to a person subject to tax liability due
				  pursuant to sections 2 or 3 of P.L. 1945, c. 132 (N.J.S.A.
				  54:18A-2 and
				  54:18A-3), the person shall be
				  allowed to apply credits against the person's tax liability without the
				  provision of a tax credit certificate to the Division of Taxation in the
				  Department of the Treasury for the tax period accompanying the person's tax
				  return, subject to the person submitting any additional authenticating or
				  supporting information with the tax return, and the person shall be considered
				  the tax certificate holder and be subject to this subsection.
2. The Authority may recapture all or part of
				  any tax credits claimed by a person pursuant to (d)1 above with penalties and
				  interest from the person or the business in the event the Division of Taxation
				  in the Department of the Treasury does not issue a tax credit certificate in an
				  amount at least equal to the tax credit amount claimed on the person's tax
				  return for the applicable tax period. Such recapture amount 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,
				  counsel fees, court costs, and other costs of collection. The Authority shall
				  confer with the Division of Taxation to determine the recapture
				  amount.