New Jersey Administrative Code › Title 19 - OTHER AGENCIES › NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY › Chapter 31S - OFFSHORE WIND ECONOMIC DEVELOPMENT TAX CREDIT PROGRAM › Subchapter 1 - OFFSHORE WIND ECONOMIC DEVELOPMENT TAX CREDIT PROGRAM › Section 19:31S-1.10 - Application for tax credit transfer certificate

Current through Register Vol. 56, No. 14, July 15, 2024
(a) A business may apply to the Director of
				  the Division of Taxation in the Department of the Treasury and the Chief
				  Executive Officer of the Authority for a tax credit transfer certificate
				  covering one or more years, in lieu of the business being allowed any amount of
				  the credit against the tax liability of the business. Such application shall
				  identify the specific tax credits to be sold. Once approved by the Authority
				  and the Director of the Division of Taxation, a certificate shall be issued.
				  The certificate, upon receipt thereof by the business from the Director and 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
				  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. The certificate provided to the
				  business shall include a statement waiving the business's right to claim that
				  amount of the credit against the taxes that the business has elected to sell or
				  assign. 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 business that originally
				  applied for and was awarded the credit, including, but not limited to, any
				  applicable statutes of limitations for claiming a refund or credit.
(b) The sale or assignment of any amount of a
				  tax credit transfer certificate allowed under this section shall not be
				  exchanged for consideration received by the business of less than 75 percent of
				  the transferred credit amount before considering any further discounting to
				  present value that shall be permitted. In order to evidence this requirement,
				  the business shall submit to the Authority an executed form of standard selling
				  agreement which states that the consideration received by the business is not
				  less than 75 percent of the transferred credit amount.
(c) In the event that the business is a
				  partnership and chooses to allocate the revenue realized from the sale of the
				  tax credits other than as a proportion of the corporate owners' distributive
				  share of income or gain of the partnership, the selling agreement shall set
				  forth the allocation among the corporate owners that has previously been
				  submitted to the Director of the Division of Taxation in the Department of the
				  Treasury pursuant to
				  N.J.A.C.
				  19:31-20.5(a).
(d) In no event shall the purchaser or
				  assignee of a tax credit transfer certificate make any subsequent transfers,
				  assignments, or sales of a tax credit transfer certificate.
(e) The Authority shall develop and make
				  available forms of applications and certificates to implement the transfer
				  processes described in this section.
(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
				  transferrer;
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. The consideration received by the
				  transferrer.