New Jersey Administrative Code › Title 19 - OTHER AGENCIES › NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY › Chapter 31T - GARDEN STATE FILM AND DIGITAL MEDIA JOBS PROGRAM › Subchapter 1 - GARDEN STATE FILM AND DIGITAL MEDIA JOBS PROGRAM › Section 19:31T-1.10 - Application for tax credit transfer certificate

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Tax credits, upon receipt thereof by an
				  approved applicant from the Director and the Authority, may be transferred, by
				  sale or assignment, in full or in part, pursuant to this section, subject to
				  the cumulative total at N.J.A.C. 19:31T-1.11(a), to any other taxpayer who may
				  have a tax liability pursuant to
				  N.J.S.A.
				  54:10A-5 or
				  54A:1-1 et seq. An approved
				  applicant shall apply to the Authority and the Director for a tax credit
				  transfer certificate, in lieu of the approved applicant being allowed any
				  amount of the credit against the tax liability of the approved applicant. Such
				  application shall identify the specific tax credits to be transferred, the
				  consideration received therefor, and the identity of the transferee. Once
				  approved by the Chief Executive Officer of the Authority and the Director of
				  the Division of Taxation, a tax credit transfer certificate shall be issued to
				  the approved applicant, naming the transferee. The certificate issued to the
				  approved applicant shall include a statement waiving the approved applicant's
				  right to claim that amount of the tax credit against the taxes that the
				  approved applicant 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 tax credits pursuant to N.J.A.C. 19:31T-1.6.
(b) The sale or assignment of any amount of a
				  tax credit transfer certificate allowed pursuant to this section shall not be
				  exchanged for consideration received by the approved applicant of less than 75
				  percent of the transferred credit amount. In order to evidence this
				  requirement, the approved applicant shall submit to the Authority an executed
				  form of standard selling agreement that evidences that the consideration
				  received by the approved applicant is not less than 75 percent of the
				  transferred tax credit.
(c) In the
				  event that the approved applicant is a partnership and chooses to allocate the
				  income realized from the sale of the tax credits other than in proportion to
				  the partners' distributive shares of income or gain of the partnership, the
				  selling agreement shall set forth the allocation among the partners 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. 19:31T-1.6.
(d) The Authority shall develop and make
				  available forms of applications and certificates to implement the transfer
				  processes described in this section.
(e) 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; and
4.
				  The State tax against which the transferee may apply the tax
				  credit.