New Jersey Administrative Code › Title 19 - OTHER AGENCIES › NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY › Chapter 31K - TECHNOLOGY BUSINESS TAX CERTIFICATE TRANSFER PROGRAM › Subchapter 1 - TECHNOLOGY BUSINESS TAX CERTIFICATE TRANSFER PROGRAM › Section 19:31K-1.7 - Allocation of tax benefits

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The Program is
				  authorized to provide no more than $ 75,000,000 of tax benefits over each State
				  fiscal year. Of the $ 75,000,000 of transferable tax benefits authorized for
				  each State fiscal year, $ 15,000,000 shall be allocated exclusively among the
				  eligible companies that operate within the boundaries of the innovation zones
				  or opportunity zones or for new or expanding emerging technology and
				  biotechnology companies that are certified as a woman- or minority-owned
				  business at the time of program application, except as provided at (a)2ii
				  below. In the event the total amount of transferable tax benefits approved
				  exceeds these limitations or any subsequent limitations, the Authority shall
				  allocate the transfer of tax benefits as follows:
1. Each company is limited to a maximum
				  lifetime tax benefit of $ 20,000,000.
2. The Authority shall allocate the $
				  15,000,000 designated for eligible companies in innovation zones or opportunity
				  zones or for new or expanding emerging technology and biotechnology companies
				  that are certified as a woman- or minority-owned business at the time of
				  program application, as follows:
i. For
				  eligible companies in innovation zones or opportunity zones or for new or
				  expanding emerging technology and biotechnology companies that are certified as
				  a woman- or minority-owned business at the time of program application, each
				  company is eligible for an allocation of the lesser of $ 250,000 or the value
				  of their eligible benefits. After these allocations are made to these companies
				  from the $ 15,000,000 innovation zone/new or expanding emerging technology and
				  biotechnology allocation, any remaining balance of the $ 15,000,000 shall be
				  apportioned among eligible companies in innovation zones with unmet eligible
				  benefits on a pro rata basis;
ii.
				  If, in any State fiscal year, there is an unused portion of the $ 15,000,000
				  allocated exclusively for companies in innovation zones or opportunity zones or
				  for new or expanding emerging technology and biotechnology companies that are
				  certified as a woman- or minority-owned business at the time of program
				  application, that portion shall be available for that State fiscal year for the
				  surrender of transferable tax benefits by new and/or expanding emerging
				  technology and biotechnology businesses that do not operate within the
				  boundaries of an innovation zone or that are new or expanding emerging
				  technology and biotechnology companies that are certified as a woman- or
				  minority-owned business at the time of program application; and
iii. The eligible companies in innovation
				  zones or opportunity zones or for new or expanding emerging technology and
				  biotechnology companies that are certified as a woman- or minority-owned
				  business at the time of program application with remaining unmet eligible
				  benefits shall participate in the allocation of the remaining pool as set forth
				  at (a)3 below.
3. The
				  Authority shall allocate the remaining tax benefits as follows:
i. Businesses with less than $ 250,000 in tax
				  benefits will be authorized to sell all of their benefits in the current
				  year;
ii. Businesses with more than
				  $ 250,000 in tax benefits will be authorized to sell at least $ 250,000 of
				  their benefits in the current year; and
iii. If the total amount of benefits
				  authorized at (a)2 and 3i and ii above exceeds $ 75,000,000, each applicant
				  shall receive a lesser amount on an apportioned basis, otherwise after the
				  dollars are set aside in the amounts provided at (a)2 and 3i and ii above, the
				  remaining funds available to the program, in that fiscal year, shall be
				  allocated among the businesses with more than $ 250,000 of tax benefits. The
				  available tax benefits shall be determined by reducing the amount of tax
				  benefits to be transferred for each business by the minimum amount of tax
				  benefits authorized for that business and then multiplying that amount by the
				  following factor:
Numerator of Fiscal Year Dollar Authorization less Total
					 Minimum Tax Benefits Authorized over denominator of Total Tax Benefits
					 Requested to be Transferred less Total Minimum Tax Benefits Authorized.
The total minimum tax benefits authorized is the amount
					 authorized for businesses with less than $ 250,000 of tax benefits plus the
					 minimum tax benefits authorized for businesses with more than $ 250,000 of tax
					 benefits. The total tax benefits requested to be transferred is the total
					 amount of tax benefits requested to be transferred by all
					 businesses.