New Jersey Administrative Code › Title 19 - OTHER AGENCIES › NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY › Chapter 31Q - GROW NEW JERSEY ASSISTANCE PROGRAM › Subchapter 1 - GROW NEW JERSEY ASSISTANCE PROGRAM › Section 19:31Q-1.10 - Incentive agreement

Current through Register Vol. 56, No. 14, July 15, 2024
(a) All approved applicants shall execute an
				  approval letter and an incentive agreement with the Authority to establish the
				  terms and the conditions of the grant of tax credits. The approval letter will
				  be subject to conditions subsequent that must be met in order to retain the
				  award of tax credits. Such conditions shall include, but not be limited to, the
				  execution of an incentive agreement.
(b) The incentive agreement shall include,
				  but not be limited to, the following terms or conditions as determined by the
				  Chief Executive Officer of the Authority:
1.
				  A detailed description of the proposed project, which will result in job
				  creation or retention, and the number of new or retained full-time jobs that
				  are approved for tax credits;
2.
				  The eligibility period of the tax credits, including the first year for which
				  the tax credits may be claimed;
3.
				  A requirement that the applicant maintain the project at a location in New
				  Jersey for the commitment period, with at least the minimum number of full-time
				  employees as required by the program, which shall include consideration of
				  bonus award(s) and net positive economic benefit test pursuant to N.J.A.C.
				  19:31Q-1.3(a)3ii and the amount of tax credits previously received by the
				  business during the eligibility period, and a provision to permit the Authority
				  to recapture all or part of any tax credits awarded, at its discretion, if the
				  business does not remain in compliance with the requirements in this paragraph
				  for the commitment duration. Such recapture may include interest on the
				  recapture amount at the rate equal to the statutory rate for corporate business
				  or insurance premiums tax deficiencies, plus any statutory penalties and all
				  costs incurred by the Authority and the Division of Taxation in connection with
				  the pursuit of the recapture, including, but not limited to, counsel fees,
				  court costs, and other costs of collection. If all or part of any tax credits
				  awarded is subject to recapture, the Authority will pursue recapture from the
				  business and not from a tax credit transfer certificate purchaser. Tax credit
				  transfer certificate purchasers shall be subject to all other limitations and
				  conditions that apply to the use of the tax credits by the business, including,
				  but not limited to, reduction and forfeiture provisions and the requirement of
				  a letter of compliance for the relevant tax period;
4. Personnel information that will enable the
				  Authority to administer the program;
5. A requirement that the certifications
				  relating to the amount of eligible capital investment and number of employees
				  with supporting evidence satisfactory to the Authority shall be submitted by
				  the business in accordance with N.J.A.C. 19:31Q-1.7(f);
6. An agreement by the applicant that the
				  four-year statute of limitations for the collection and assessment of
				  corporation business tax and insurance premiums tax will be extended to the
				  period of the commitment duration;
7. Certifications by the business, including
				  the following: the State's financial support will yield a net positive economic
				  benefit to the State;
8.
				  Requirements on maintaining the existence of the business and not relocating
				  the project;
9. Annual reporting
				  requirements for the number of full-time employees for which the tax credits
				  are to be made;
10. Representations
				  that the business is in good standing, the project complies with all applicable
				  law, and specifically, that the project does not violate any environmental
				  law;
11. Audit of the payroll
				  records, as deemed necessary by the Authority;
12. Indemnification and insurance
				  requirements;
13. Limitations on
				  the grant of tax credits;
14. A
				  provision which permits the Authority to amend the agreement;
15. Default and remedies;
16. Reporting requirements; and
17. A provision to permit the Authority to
				  recoup, during the period of the net positive economic benefit, all or a
				  portion of the tax credits awarded based on the net positive economic benefit
				  calculated for the years after the commitment period.