N.J. Admin. Code § 19:31AA-1.11

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

Section 19:31AA-1.11 - Application for tax credit transfer certificate

(a) An applicant or co-applicant may apply to the Director of the Division of Taxation in the Department of the Treasury and the Chief Executive Officer of the Authority for a tax credit transfer certificate, covering one or more years, in lieu of the applicant or co-applicant being allowed any amount of the credit against the tax liability of the applicant. The tax credit transfer certificate, upon receipt thereof by the applicant or co-applicant from the Director and the Chief Executive Officer of the Authority, may be sold or assigned, in full or in part, in an amount not less than $ 25,000, in the privilege period during which the applicant or co-applicant receives the tax credit transfer certificate from the Director, to another person, who may apply the tax credit against a tax liability pursuant to N.J.S.A. 54:10A-5, 54:18A-2 and 54:18A-3, 17:32-15, or 17B:23-5. The certificate provided to the applicant or co-applicant shall include a statement waiving the applicant's or co-applicant's right to claim the amount of the credit that the applicant or co-applicant has elected to sell or assign against the applicant's or co-applicant's tax liability.

(b) The applicant or co-applicant shall not sell or assign, including a collateral assignment, a tax credit transfer certificate allowed pursuant to this section for consideration received by the applicant or co-applicant of less than 85 percent of the transferred credit amount before considering any further discounting to present value which shall be permitted. The applicant or co-applicant shall submit to the Authority documentation evidencing the value of the tax credits that may include, but not be limited to, the purchase agreement.

(c) The tax credit transfer certificate issued to an applicant or co-applicant by the Director shall be subject to any limitations and conditions imposed on the application of original State tax credits issued pursuant to the Act 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.

(d) 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. If a lender that holds a tax credit certificate as collateral on a redevelopment project forecloses on the project, the foreclosure and resulting transfer of the certificate shall not be considered a sale of the transfer certificate.

(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 transferor;

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 transferor.

N.J. Admin. Code § 19:31AA-1.11

Recodified from 19:31-28.11 56 N.J.R. 807(a), effective 5/6/2024