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-1.13 - Application for tax credit transfer certificate; assignment

Current through Register Vol. 56, No. 14, July 15, 2024
(a) A developer may
				  apply to the Director and the Chief Executive Officer of the Authority for a
				  tax credit transfer certificate, during the privilege period in which the
				  Director issues the developer a tax credit pursuant to section 16 at
				  P.L.
				  2020, c. 156
				  (N.J.S.A.
				  34:1B-284) and N.J.A.C. 19:31Z-1.12. The tax
				  credit transfer certificate, upon receipt thereof by the developer from the
				  Director and the Chief Executive Officer of the Authority, may be sold or
				  assigned, in full or in part, in an amount not less than $ 25,000, in the
				  privilege period during which the developer receives the tax credit transfer
				  certificate from the Director, to another person, who may apply the credit
				  against a tax liability pursuant to section 5 at P.L. 1945, c. 162
				  (N.J.S.A.
				  54:10A-5), sections 2 and 3 at P.L. 1945, c.
				  132 (N.J.S.A. 54:18A-2 and
				  54:18A-3), section 1 at P.L. 1950,
				  c. 231 (N.J.S.A. 17:32-15), or
				  N.J.S.A.
				  17B:23-5.
(b) The developer shall not sell a tax credit
				  transfer certificate allowed pursuant to this section for consideration
				  received by the developer or less than 85 percent of the transferred credit
				  amount before considering any further discounting to present value that shall
				  be permitted, except a developer of a residential project consisting of newly
				  constructed residential units that have 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.
(c) 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 redevelopment
				  project forecloses on the project, the foreclosure and resulting transfer of
				  the certificate shall not be considered a sale of the transfer
				  certificate.
(d) A tax credit
				  transfer certificate issued by the Director and the Authority shall include a
				  statement waiving the rights of the developer to which the tax credit has been
				  granted to claim any amount of remaining credit against any tax
				  liability.
(e) The tax credit
				  transfer certificate issued to a developer by the Director shall be subject to
				  any limitations and conditions imposed on the application of State tax credits
				  pursuant to sections 9 through 19 at
				  P.L.
				  2020, c. 156
				  (N.J.S.A.
				  34:1B-277 through 287) 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.
(f) 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. The name of the
				  transferor;
2. The name of the
				  transferee;
3. The value of the tax
				  credit transfer certificate;
4. The
				  state tax against which the transferee may apply the tax credit; and
5. Consideration received by the
				  transferor.