New Jersey Administrative Code › Title 19 - OTHER AGENCIES › NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY › Chapter 31M - BUSINESS RETENTION AND RELOCATION ASSISTANCE GRANT PROGRAM › Subchapter 1 - BUSINESS RETENTION AND RELOCATION ASSISTANCE GRANT PROGRAM › Section 19:31M-1.2 - Definitions

Current through Register Vol. 56, No. 14, July 15, 2024
The following words and terms, when used in this
					 subchapter, shall have the following meanings, unless the context clearly
					 indicates otherwise.
"Act" means the Business Retention and Relocation
					 Assistance Act,
					 P.L.
					 2004, c. 65.
"Affiliate" means an entity that directly or indirectly
					 controls, is under common control with, or is controlled by the business.
					 Control exists in all cases in which the entity is a member of a controlled
					 group of corporations as defined pursuant to section
					 1563 of the Internal Revenue Code
					 of 1986 ( 26 U.S.C. § 1563 ) or the entity is an organization in a group
					 of organizations under common control as defined pursuant to subsection (b) or
					 (c) of section 414 of the Internal Revenue Code
					 of 1986 ( 26 U.S.C. § 414 ). An entity may establish by clear and
					 convincing evidence, as determined by the Director of the Division of Taxation
					 in the Department of the Treasury, that control exists in situations involving
					 lesser percentages of ownership than required by those statutes.
"Agreement" or "project agreement" means an agreement
					 between a business and the Authority that sets the forecasted schedule for
					 completion and occupancy of the project, the date the commitment duration shall
					 commence, the amount of the applicable grant of tax credits, and other such
					 provisions which further the purposes of
					 P.L.
					 1996, c. 25, as amended
					 by P.L.
					 2004 c. 65,
					 §§1 through 16 (34:1B-112 through 123.).
"Authority" means the New Jersey Economic Development
					 Authority established under section 4 of P.L. 1974, c. 80 (34:1B-4 ).
"Board" means the Board of the New Jersey Economic
					 Development Authority.
"Business" means an employer located in this State that has
					 operated continuously in the State, in whole or in part, in its current form or
					 as a predecessor entity for at least 10 years prior to filing an application to
					 the program and which is subject to the provisions of 43:21-1 et seq. and may
					 include a sole proprietorship, a partnership, or a corporation that has made an
					 election under Subchapter S of Chapter One of Subtitle A of the Internal
					 Revenue Code of 1986, or any other business entity through which income flows
					 as a distributive share to its owners, limited liability company, nonprofit
					 corporation, or any other form of business organization located either within
					 or outside the State, such as a group of organizations under common control as
					 defined in Section 414(b) or (c) of
					 the Internal Revenue Code of 1986 and Federal Treasury regulations thereunder.
					 For purposes of identifying full-time employees in eligible positions and
					 retained State tax revenue, any such employees hired by or taxes paid by a
					 professional employer organization (PEO) with which the business has entered
					 into an employee leasing agreement shall be allocable to the business. A
					 business shall include an affiliate of the business if that business applies
					 for a credit based upon any capital investment made by an affiliate or based
					 upon retained full-time jobs of an affiliate.
"Business employment incentive program grant" or "BEIP
					 grant" means the grant made to a business by the New Jersey Economic
					 Development Authority pursuant to the provisions of
					 P.L.
					 1996, c. 26 (34:1B-124
					 et al).
"Business retention or relocation grant of tax credits" or
					 "grant of tax credits" means a grant which consists of the value of corporation
					 business tax credits against the liability imposed pursuant to section 5 of
					 P.L. 1945, c.162 (54:10A-5 ) or credits against the taxes imposed on insurers
					 pursuant to P.L. 1945, c.132 (54:18A-1 et seq.), section 1 of P.L. 1950, c.231
					 (17:32-15 ), and 17B:23-5, provided to fund a portion of retention and
					 relocation costs pursuant to
					 P.L.
					 1996, c. 25 (34:1B-112
					 et seq.), as amended by
					 P.L.
					 2004, c. 65, and
					 pursuant to this subchapter.
"Capital investment" means expenses that the business
					 incurs following its submission of an application to the Authority pursuant to
					 section
					 5 of
					 P.L.
					 1996, c. 25 (34:1B-116
					 ), but prior to the Capital Investment Completion Date, as shall be defined in
					 the project agreement, for: the site preparation and construction, renovation,
					 improvement, equipping of, or obtaining and installing fixtures and machinery,
					 apparatus or equipment in, a newly constructed, renovated or improved building,
					 structure, facility, or improvement to real property in this State; and
					 obtaining and installing fixtures and machinery, apparatus or equipment in a
					 building, structure, or facility in this State. Provided, however, that
					 "capital investment" shall not include soft costs such as financing and design,
					 furniture or decorative items such as artwork or plants, or office equipment if
					 the office equipment is property with a recovery period of less than five
					 years. The recovery period of any property, for purposes of this definition,
					 shall be determined as of the date such property is first placed in service or
					 use in this State by the business, determined in accordance with section 168 of
					 the Federal Internal Revenue Code of 1986 ( 26 U.S.C. § 168 ). For the
					 purposes of this definition, cubicles and cubicles that include office
					 equipment shall constitute capital investment. A business that acquires or
					 leases a qualified business facility shall also be deemed to have acquired the
					 capital investment made or acquired by the seller or landlord, as the case may
					 be.
"Certificate of compliance" means a certificate issued by
					 the Authority pursuant to
					 section
					 9 of
					 P.L.
					 1996, c. 25 (34:1B-120
					 ).
"Chief Executive Officer" means the Chief Executive Officer
					 of the New Jersey Economic Development Authority.
"Commitment duration" means the tax credit term and five
					 years from the end of the tax credit term specified in the project agreement
					 entered into pursuant to
					 section
					 5 of
					 P.L.
					 1996, c. 25 (34:1B-116
					 ), as amended by
					 P.L.
					 2004, c. 65, and
					 pursuant to this subchapter.
"Designated industry" means an industry identified by the
					 Authority as desirable for the State to maintain, which may be designated and
					 amended via promulgation of rules by the Authority to reflect changing market
					 conditions.
"Designated urban center" means an urban center designated
					 in the State Development and Redevelopment Plan adopted by the State Planning
					 Commission, pursuant to P.L. 1985, c.398 (52:18A-200 ).
"Director" means the Director of the Division of Taxation
					 in the Department of the Treasury.
"Eligible position" means a full-time position retained by
					 a business in this State for which a business provides employee health benefits
					 under a group health plan as defined under
					 section
					 14 of
					 P.L.
					 1997, c. 146 (17B:27-54
					 ), a health benefits plan as defined under section 1 of P.L. 1992, c.162
					 (17B:27A-17 ), or a policy or contract of health insurance covering more than
					 one person issued pursuant to Article 2 of Title 17B of the New Jersey
					 Statutes.
"Fiscal year" means the State fiscal year of July 1 to June
					 30.
"Full-time employee" means a person employed by the
					 business for consideration for at least 35 hours a week, or who renders any
					 other standard of service generally accepted by custom or practice, as
					 determined by the Authority, as full-time employment, or a person who is
					 employed by a professional employer organization pursuant to an employee
					 leasing agreement between the business and the professional employer
					 organization, in accordance with
					 P.L.
					 2001, c. 260 (34:8-67
					 et seq.) for at least 35 hours a week, or who renders any other standard of
					 service generally accepted by custom or practice as full-time employment, as
					 determined by the Authority, as full-time employment, and whose wages are
					 subject to withholding as provided in the New Jersey Gross Income Tax Act,
					 54A:1-1 et seq. or an employee who is a resident of another state but whose
					 income is not subject to the New Jersey Gross Income Tax Act, 54A:1-1 et seq.
					 or who is a partner of a business who works for the partnership for at least 35
					 hours a week, or who renders any other standard of service generally accepted
					 by custom or practice, as determined by the Authority, as full-time employment,
					 and whose distributive share of income, gain, loss, or deduction, or whose
					 guaranteed payments, or any combination thereof, is subject to the payment of
					 estimated taxes, as provided in the New Jersey Gross Income Tax Act, 54A:1-1 et
					 seq. "Full-time employee" shall not include any person who works as an
					 independent contractor or on a consulting basis for the business.
"Full-time employee at the qualified business facility"
					 means a full-time employee whose primary office is at the site and who spends
					 at least 80 percent of his or her time at the site, or who spends any other
					 period of time generally accepted by custom or practice as full-time employment
					 at the site, as determined by the Authority.
"New business location" means the premises to which a
					 business will relocate that the business has either purchased or built or for
					 which the business has entered into a purchase agreement or a written lease for
					 a period of no less than the commitment duration or eight years, whichever is
					 greater, from the date of relocation. A "new business location" also means the
					 business's current location or locations if the business makes a capital
					 investment equal to the total value of the business retention or relocation
					 grant of tax credits to the business at that location or locations. In the
					 event the new business location will be at more than one location, the business
					 may evidence that the application is for a single project through factors
					 showing interrelatedness, such as the same business event driving the
					 relocation, moves timed together, and full-time jobs relocated from the same
					 business location.
"Point-of-final purchase retail facility" means a business
					 wherein the normal and customary method of patronizing the business conducted
					 at the facility requires the retail customer to travel to the location to
					 purchase the goods or services of that business. "Point-of-final purchase
					 retail facilities" shall not include catalog distribution centers for the
					 purposes of this program.
"Program" means the Business Retention and Relocation
					 Assistance Grant Program created pursuant to
					 P.L.
					 1996, c. 25, as
					 substantially amended by
					 P.L.
					 2004, c. 65,
					 §§1 through 16 (34:1B-112 through 123) and
					 P.L.
					 2010, c. 123, and
					 provided in this subchapter.
"Project" means the relocation or maintaining of retained
					 full-time jobs at the approved site as improved by the new business location.
					 In the event that the new business location will be at more than one location,
					 the business may evidence that the application is for a single project through
					 factors showing interrelatedness such as the same business event driving the
					 relocation, moves timed together, and full-time jobs relocated from the same
					 business location.
"Project agreement" means an agreement between a business
					 and the Authority that sets the forecasted schedule for completion and
					 occupancy of the project, the date the commitment duration shall commence, the
					 amount and tax credit term of the applicable grant of tax credits, and other
					 such provisions which further the purposes of
					 P.L.
					 1996, c. 25 (34:1B-112
					 et seq.).
"Retained full-time job" means an eligible position that
					 currently exists in New Jersey and is filled by a full-time employee but which,
					 because of a potential relocation by the business, is at risk of being lost to
					 another state or country. For the purposes of determining a number of retained
					 full-time jobs, the eligible positions of an affiliate shall be considered the
					 eligible positions of the business. A retained full-time job is one that will
					 not be included in the calculation of a BEIP grant subsequent to being moved to
					 the approved project site, under the agreement. The number of retained
					 full-time jobs shall mean the business's number of permanent full-time jobs as
					 referred to in the project description in the application and the agreement,
					 which exist as of the effective date of the agreement. In order to demonstrate
					 that a job meets this definition, a business must provide documentation that
					 demonstrates the at-risk nature of these employees, which shall include a
					 certification of the business's chief executive officer that the jobs are
					 at-risk at being located outside of New Jersey. For the purposes of the
					 certifications required pursuant to the incentive agreement,
34:1B-116
or 120, to the extent an eligible position that was
					 the basis of the award no longer exists, a business may include as a retained
					 full-time job a new eligible position that is filled by a full-time employee
					 provided that the position is included in the order of date of hire and is not
					 the basis for any other incentive award.
"Retained State tax revenue" means either State tax revenue
					 received in the most recently completed State tax period or State tax revenue
					 projected to be received from the business by the State.
"Tax credit term" means the period of time commencing with
					 the first issuance of tax credits and continuing during the period in which the
					 recipient of a grant of tax credits is eligible to apply the tax credits
					 pursuant to
					 section
					 7 of
					 P.L.
					 2004, c. 65
					 (34:1B-115.3 ).
"Tax period" means the 12-month period selected by the
					 business for the purposes of determining annual taxable income.
"Yearly tax credit amount" means $ 1,500 times the number
					 of retained full-time jobs. "Yearly tax credit amount" does not include the
					 amount of any bonus award authorized pursuant to
					 section
					 5 of
					 P.L.
					 2004, c. 65
					 (34:1B-115.1 ).