N.J. Admin. Code § 19:31AA-1.10

Current through Register Vol. 56, No. 12, June 17, 2024

Section 19:31AA-1.10 - Reduction, forfeiture, and recapture of tax credits

(a) If, during the eligibility period, the applicant ceases to operate the project as a supermarket or grocery store, the supermarket or grocery store ceases to operate on a full-time basis, or the project ceases to meet the criteria at N.J.A.C. 19:31AA-1.3(a)7, the applicant and any co-applicant may forfeit or be subject to recapture for all or some of the incentive award.

(b) During the commitment period, the Authority may recapture a proportionate amount of the tax credit if the project ceases to be a supermarket or grocery store, the supermarket or grocery store ceases to operate on a full-time basis, or the project ceases to meet the criteria at N.J.A.C. 19:31AA-1.3(a)7.

(c) If the supermarket or grocery store is disqualified from the Supplemental Nutrition Assistance Program (SNAP) or is subject to a Federal sanction leading to disqualification from the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC), then the applicant and any co-applicant shall forfeit all credits for the relevant tax period and each subsequent tax period and the Authority shall recapture a proportionate amount of the tax credit.

(d) If any labor harmony agreement requirement pursuant to N.J.A.C. 19:31AA-1.8(d) is not satisfied during the relevant tax period, then the applicant and any co-applicant shall forfeit, or the Authority shall recapture some or all of the tax credits for the tax period in which the labor harmony agreement requirements are not satisfied and each subsequent tax period until the first tax period for which documentation demonstrating compliance has been reviewed and approved by the Authority, for which tax period and each subsequent period the full amount of the credit shall be allowed.

(e) As of the date of the annual report pursuant to N.J.A.C. 19:31AA-1.9, if any worker employed to perform construction work at the project is paid less than the prevailing wage rate for the worker's craft or trade during the relevant tax period as required pursuant to N.J.A.C. 19:31AA-1.13(b), then the applicant and any co-applicant shall forfeit, or the Authority shall recapture some or all of the tax credits for the tax period in which the prevailing wage is not paid and each subsequent tax period until the first tax period for which documentation demonstrating compliance has been reviewed and approved by the Authority, for which tax period and each subsequent period the full amount of the credit shall be allowed.

(f) If, based on new information, the Authority determines that forfeiture or recapture should have been applicable pursuant to any of the provisions in this section, the Authority shall recapture some or all of the tax credits for the relevant tax period(s).

(g) If, at any time, the Authority determines that the applicant or co-applicant made a material misrepresentation on the applicant's application, project completion certification, annual report, or any related submissions, the applicant and any co-applicant shall forfeit, and the Authority may recapture any or all of the incentive award and all tax credits awarded pursuant to the Program, which shall be in addition to any other remedies in the incentive award agreement and any criminal or civil penalties to which the applicant, co-applicant, and the respective officers may be subject.

(h) Any recapture amount pursuant to this section 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.

(i) If all or part of a tax credit sold or assigned pursuant to N.J.S.A. 34:1B-331 and N.J.A.C. 19:31AA-1.11(a) is subject to recapture, then the Authority shall pursue recapture from the applicant, and to the extent the co-applicant is involved with the basis for the recapture, any co-applicant, and not from the purchaser or assignee of the tax credit transfer certificate.

(j) Any funds recaptured pursuant to this section, including penalties and interest, shall be deposited into the General Fund of the State.

N.J. Admin. Code § 19:31AA-1.10

Recodified from 19:31-28.10 56 N.J.R. 807(a), effective 5/6/2024