New Jersey Administrative Code › Title 19 - OTHER AGENCIES › NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY › Chapter 31S - OFFSHORE WIND ECONOMIC DEVELOPMENT TAX CREDIT PROGRAM › Subchapter 1 - OFFSHORE WIND ECONOMIC DEVELOPMENT TAX CREDIT PROGRAM › Section 19:31S-1.12 - Reduction and forfeiture of tax credits

Current through Register Vol. 56, No. 14, July 15, 2024
(a) If, in any tax period during the
				  eligibility period, the business reduces the total number of full-time
				  employees in its Statewide workforce by more than 20 percent from the number of
				  full-time employees in its Statewide workforce in the last tax accounting or
				  privilege period prior to the credit amount approval under the Program, then
				  the business shall forfeit its credit amount for that tax period and each
				  subsequent tax period until the first tax period for which documentation
				  demonstrating the restoration of the business's Statewide workforce to the
				  threshold levels required by this section has been reviewed and approved by the
				  Authority, for which tax period and each subsequent tax period the full amount
				  of the credit shall be allowed. For purposes of this section, "business" shall
				  include any affiliate that has contributed to the capital investment, received
				  the tax credit or contributed to the required full-time employees at the
				  qualified wind energy facility. A company with which the recipient has an
				  equipment supply coordination agreement is not considered an affiliate for the
				  purposes of this section. The number of full-time employees in a business's
				  Statewide workforce shall not include a new full-time employee at the qualified
				  wind energy facility.
(b) If, in
				  any tax period during the eligibility period, the aggregate number of new
				  full-time employees at the qualified wind energy facility and resulting from an
				  equipment supply coordination agreement drops below the minimum number of new
				  full-time employees or prorated annual minimum number of new full time
				  employees, as applicable, then the business shall forfeit its credit amount for
				  that tax period and each subsequent tax period, until the first tax period of
				  which documentation demonstrating the restoration of the number of new
				  full-time employees employed at the qualified wind energy facility and
				  resulting from an equipment supply coordination agreement to the minimum number
				  of new full-time employees or prorated annual minimum number of new full-time
				  employees, as applicable, has been reviewed and approved by the Authority, for
				  which tax period and each subsequent tax period the full amount of the annual
				  credit shall be allowed.
(c) The
				  credit amount for any tax period ending after January 13, 2026, which is the
				  date 18 years after the effective date of
				  P.L.
				  2007, c. 346
				  (N.J.S.A.
				  34:1B-207 et seq.), during which the
				  documentation of a business's credit amount remains unapproved shall be
				  forfeited, although credit amounts for the remainder of the years of the
				  eligibility period shall remain available.
(d) In the event that any certification
				  required from the business or the other party to any equipment supply
				  coordination agreement, including, but not limited to, the certifications
				  required pursuant to N.J.A.C. 19:31S-1.14(a)2, is found to be willfully false
				  or that the business submitted false or misleading information or failed to
				  submit relevant information in the application or any other submission to the
				  Authority or the Division of Taxation, the Authority may, at its sole
				  discretion and in addition to any other remedies available, revoke and/or
				  terminate any award of tax credits in their entirety and may recapture all or a
				  portion of the tax credits received by the business.
(e) For projects with a commitment pursuant
				  to N.J.A.C. 19:31S-1.3(c) to maintain the project at the qualified wind energy
				  facility after the eligibility period, the Authority may recoup all or a
				  portion of the tax credits awarded if the business does not maintain the
				  project at the qualified wind energy facility for the period of years after the
				  eligibility period based on a recoupment schedule in the approval letter. The
				  business shall have 12 months to restore the new full-time jobs to 300 or the
				  applicable prorated minimum number of new full-time employees before the
				  Authority may recoup any amount of tax credits.
(f) Any recapture or recoupment pursuant to
				  (d) or (e) above 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 or recoupment amount.