New Jersey Administrative Code › Title 19 - OTHER AGENCIES › NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY › Chapter 31Y - HISTORIC PROPERTY REINVESTMENT PROGRAM › Subchapter 1 - HISTORIC PROPERTY REINVESTMENT PROGRAM › Section 19:31Y-1.10 - Application for tax credit transfer certification

Current through Register Vol. 56, No. 14, July 15, 2024
(a) A business entity or co-applicant holding
				  an unused, otherwise allowable tax credit issued pursuant to sections 2 through
				  8 at P.L.
				  2020, c. 156
				  (N.J.S.A.
				  34:1B-270 through
				  34:1B-276), may apply to the
				  Director and the Authority for a tax credit transfer certificate pursuant to
				  this section. Upon receipt thereof, the business entity or co-applicant may
				  sell or assign, in full or in part, the tax credit transfer certificate to
				  another taxpayer in exchange for private financial assistance to be provided by
				  the purchaser or assignee of the tax credit transfer certificate to the seller
				  thereof. The business entity or co-applicant shall not sell a tax credit
				  transfer certificate allowed pursuant to this section for consideration
				  received by the business entity or co-applicant of less than 85 percent of the
				  transferred credit amount before considering any further discounting to present
				  value, which shall be permitted, except a developer of a residential project
				  consisting of newly constructed residential units that has received Federal low
				  income housing tax credits pursuant to 26 U.S.C. § 42(b)(1)(B)(i) may
				  assign a tax credit transfer certificate for consideration of no less than 75
				  percent subject to the submission of a plan to the Authority and the New Jersey
				  Housing and Mortgage Finance Agency to use the proceeds derived from the
				  assignment of tax credits to complete the residential project. The purchaser or
				  assignee of the tax credit transfer certificate may apply the face value of the
				  tax credit transfer certificate acquired against the purchaser's or assignee's
				  applicable tax liability by claiming the tax credit on the purchaser's or
				  assignee's corporation business tax or insurance premiums tax return with the
				  corresponding tax credit transfer certificate accompanying the tax
				  return.
(b) A purchaser or assignee
				  of a tax credit transfer certificate pursuant to this section shall not make
				  any subsequent transfers, assignments, or sales of the tax credit transfer
				  certificate. If a lender that holds a tax credit certificate as collateral on a
				  rehabilitation project forecloses on the project, the foreclosure and resulting
				  transfer of the certificate shall not be considered a sale of the transfer
				  certificate.
(c) A tax credit
				  transfer certificate issued by the Director and the Authority shall include a
				  statement waiving the rights of the business entity or co-applicant to which
				  the tax credit has been granted to claim any amount of remaining tax credit
				  against any tax liability.
(d) The
				  tax credit transfer certificate issued to a business entity or co-applicant by
				  the Director shall be subject to any limitations and conditions imposed on the
				  application of State tax credits pursuant to sections 2 through 8 at
				  P.L.
				  2020, c. 156
				  (N.J.S.A.
				  34:1B-270 through
				  34:1B-276), and any other terms
				  and conditions that the Director may prescribe including, but not limited to,
				  any applicable statutes of limitations for claiming a refund or
				  credit.
(e) The Authority shall
				  publish on its Internet website the following information concerning each tax
				  credit transfer certificate approved by the Authority and the Director pursuant
				  to this section:
1. Name of the
				  transferor;
2. Name of the
				  transferee;
3. Value of the tax
				  credit transfer certificate;
4.
				  State tax against which the transferee may apply the tax credit; and
5. Consideration received by the
				  transferor.