New Jersey Administrative Code › Title 19 - OTHER AGENCIES › NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY › Chapter 31N - TAX CREDIT CERTIFICATE TRANSFER PROGRAM › Subchapter 1 - TAX CREDIT CERTIFICATE TRANSFER PROGRAM › Section 19:31N-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.
"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 (34:1B-112
					 et seq.), as amended by
					 P.L.
					 2004, c. 65,
					 §§1 through 16 (34:1B-112 through 123).
"Application" means the application submitted to the
					 Authority from the seller of BRRAG tax credits, for approval of the BRRAG tax
					 credit transfer certificate.
"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.
"BRRAG program" means the tax credit 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 provided in N.J.A.C.
					 12A:2-1.
"BRRAG tax credit certificate transfer program" or
					 "Program" means the Business Retention and Relocation Assistance Grant Tax
					 Credit Transfer Program created pursuant to section 17 of the Act (34:1B-120.2
					 ).
"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.
"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
					 (N.J.A.C. 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 N.J.A.C. 12A:2-1.
"Business retention or relocation tax credit" or "BRRAG tax
					 credit" means the tax credit that a business obtains through the BRRAG
					 program.
"Buying business," means a business with the financial
					 ability to purchase the unused BRRAG tax credits from an unaffiliated selling
					 business. For the purpose of this definition, the test of affiliation is
					 whether the same entity directly or indirectly owns or controls five percent or
					 more of the voting rights or five percent or more of the value of all classes
					 of stock of both the selling and buying businesses.
"Certificate" or "BRRAG tax credit transfer certificate"
					 means the certificate issued by the Division of Taxation certifying to the
					 selling business amounts of unused BRRAG tax credit. The certificates are
					 issued in the form of corporation business tax credit and insurance premiums
					 tax credit transfer certificates.
"Chief Executive Officer" means the Chief Executive Officer
					 of the New Jersey Economic Development Authority.
"Director" means the Director of the Division of Taxation
					 in the Department of the Treasury.
"New business location" means the premises 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 eight
					 years from the date of relocation. A new business location may also include the
					 premises from which the business moves on a temporary basis due to the
					 rehabilitation of permanent premises that also qualifies as reconstruction as
					 "reconstruction" is defined in the Uniform Construction Code, 5:23-6.3. In that
					 case, the move to the permanent premises will trigger availability of the grant
					 of tax credits.
"Private financial assistance" means the assistance that
					 the buying business provides the selling business to assist in the funding of
					 costs incurred by the relocating business.
"Project" means the construction, renovation or expansion
					 of facilities at the approved site as described in the project description in
					 the application and the agreement that will become the business's new business
					 location.
"Selling business" means a business that has unused BRRAG
					 tax credits issued under
					 P.L.
					 1996, c. 25 (34:1B-112
					 et seq.), as amended by
					 P.L.
					 2004, c. 65, and
					 otherwise allowable which it wishes to "sell."
"Total allowable relocation costs" means $ 1,500 times the
					 number of retained full-time jobs. "Total allowable relocation costs" does not
					 include the amount of any bonus award authorized pursuant to
					 section
					 5 of
					 P.L.
					 2004, c. 65
					 (34:1B-115.1 ).