New Jersey Administrative Code › Title 19 - OTHER AGENCIES › NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY › Chapter 31D - ECONOMIC REDEVELOPMENT AND GROWTH PROGRAM › Subchapter 1 - ECONOMIC REDEVELOPMENT AND GROWTH PROGRAM › Section 19:31D-1.11 - Pledge, assignment, transfer, or sale of grant amount

Current through Register Vol. 56, No. 14, July 15, 2024
(a) A developer may, upon notice to and
				  consent of the Authority and the State Treasurer, which consent shall not be
				  unreasonably withheld, pledge, assign, transfer, or sell any or all of its
				  right, title, and interest in and to such agreements and in the incentive
				  grants payable thereunder, and the right to receive same, along with the rights
				  and remedies provided to the developer under such agreement. Any such
				  assignment shall be an absolute assignment for all purposes, including the
				  Federal bankruptcy code. Any pledge of incentive grants made by the developer
				  shall be valid and binding from the time when the pledge is made and filed in
				  the records of the Authority. The incentive grants so pledged and thereafter
				  received by the developer shall immediately be subject to the lien of the
				  pledge without any physical delivery thereof or further act, and the lien of
				  any pledge shall be valid and binding as against all parties having claims of
				  any kind in tort, contract, or otherwise against the developer irrespective of
				  whether the parties have notice thereof. Neither the redevelopment incentive
				  grant agreement nor any other instrument by which a pledge under this section
				  is created need be filed or recorded except with the Authority.
(b) A developer may apply to the Director of
				  the Division of Taxation and the Chief Executive Officer of the Authority for a
				  tax credit transfer certificate, if the developer is awarded a tax credit
				  pursuant to N.J.A.C. 19:31D-1.8 or 1.9, covering one or more years, in lieu of
				  the developer being allowed any amount of the credit against the tax liability
				  of the developer. 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 of tax credits to any other person that may have 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 3), section
				  1 at P.L. 1950, c. 231 (N.J.S.A. 17:32-15),
				  or N.J.S.A. 17B:23-5. The
				  certificate provided to the developer shall include a statement waiving the
				  developer's right to claim that amount of the credit against the taxes that the
				  developer has elected to sell or assign. The sale or assignment of any amount
				  of a tax credit transfer certificate allowed under this subsection shall not be
				  exchanged for consideration received by the developer of less than 75 percent
				  of the transferred credit amount before considering any further discounting to
				  present value which may be permitted. Any amount of a tax credit transfer
				  certificate used by a purchaser or assignee against a tax liability shall be
				  subject to the same limitations and conditions that apply to the use of the
				  credit by the developer who originally applied for and was allowed the
				  credit.