New Jersey Administrative Code › Title 19 - OTHER AGENCIES › NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY › Chapter 31U - EMERGE › Subchapter 1 - EMERGE › Section 19:31U-1.12 - Application for tax credit transfer certificate

Current through Register Vol. 56, No. 14, July 15, 2024
(a) An eligible business may apply to the
				  Director and the Chief Executive Officer of the Authority for a tax credit
				  transfer certificate, within three years of the tax period in which the
				  Director allows the eligible business a tax credit, in lieu of any amount of
				  the tax credit against the eligible business's State tax liability. The tax
				  credit transfer certificate, upon receipt thereof by the eligible business from
				  the Director and the Chief Executive Officer of the Authority, may be sold or
				  assigned, in an amount not less than $ 25,000, within three years of the tax
				  period in which the eligible business receives the tax credit transfer
				  certificate from the Director, to another person that may have a tax liability
				  pursuant to section 5 of P.L. 1945, c. 162 (N.J.S.A.
				  54:10A-5); sections 2 and 3 of P.L. 1945, c.
				  132 (N.J.S.A. 54:18A-2 and
				  54:18A-3); section 1 of P.L. 1950,
				  c. 231 (N.J.S.A. 17:32-15); or
				  N.J.S.A.
				  17B:23-5. A purchaser or assignee of a tax
				  credit transfer certificate pursuant to this section shall apply the
				  transferred credit against the same tax for which the eligible business was
				  approved a tax credit under the program. The tax credit transfer certificate
				  provided to the eligible business shall include a statement waiving the
				  eligible business's right to claim the credit that the eligible business has
				  elected to sell or assign.
(b) The
				  eligible business shall not sell or assign a tax credit transfer certificate
				  allowed pursuant to this section for consideration received by the eligible
				  business of less than 85 percent of the transferred credit amount before
				  considering any further discounting to present value that shall be permitted.
				  The tax credit transfer certificate issued to the eligible business by the
				  Director shall be subject to any limitations and conditions imposed on the
				  application of State tax credits under this program and any other terms and
				  conditions that the Director may prescribe, including, but not limited to, any
				  applicable statutes of limitations for claiming a refund or credit.
(c) With respect to credits to be sold or
				  assigned, in full or in part, pursuant to an application to the Authority for a
				  tax credit transfer certificate by a business to a person subject to tax
				  liability due pursuant to sections 2 or 3 of P.L. 1945, c. 132 (N.J.S.A.
				  54:18A-2 or
				  54:18A-3), the person shall be
				  allowed to apply the credits against the person's tax liability without the
				  provision of a tax credit transfer certificate to the Division of Taxation in
				  the Department of the Treasury for the tax period accompanying its tax return,
				  subject to the person submitting any additional authenticating or supporting
				  information with the tax return, and the person be considered a tax credit
				  transferee and be subject to (d) below.
(d) The Authority may recapture all or part
				  of any tax credits claimed by a person pursuant to (c) above with penalties and
				  interest from the person or the business in the event the Authority or the
				  Director does not issue a tax credit certificate in an amount at least equal to
				  the tax credit amount claimed on the person's tax return for the applicable tax
				  period. Such recapture amount may include interest on the recapture amount, at
				  a rate equal to the statutory rate for tax deficiencies, plus any statutory
				  penalties, and all costs incurred by the Authority and the Division of Taxation
				  in the Department of the Treasury in connection with the pursuit of the
				  recapture, including, but not limited to, counsel fees, court costs, and other
				  costs of collection. The Authority shall confer with the Division of Taxation
				  to determine the recapture amount.
(e) The purchaser or assignee of a tax credit
				  transfer certificate shall be subject to any limitations and conditions that
				  apply to the use of the tax credits by the eligible business. A purchaser or
				  assignee of a tax credit transfer certificate pursuant to this section shall
				  not make any subsequent transfers, assignments, or sales of the tax credit
				  transfer certificate.
(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.