N.J. Admin. Code § 19:31AA-1.7

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

Section 19:31AA-1.7 - Approval of completed application; tax credit amounts

(a) The Authority shall award incentive awards based on the order in which complete, qualifying applications are received by the Authority. If interest in the Program so warrants, at the Authority's discretion and upon notice, the Authority may institute a competitive application process whereby all completed applications submitted by a certain date will be evaluated as if submitted on that date. The Authority's review will determine whether the applicant:

1. Complies with the eligibility criteria;

2. Satisfies the submission requirements; and

3. Provides adequate information for the subject application.

(b) Before the Board may consider an application for tax credits:

1. The Authority shall confirm with the New Jersey Department of Labor and Workforce Development, the New Jersey Department of Environmental Protection, and the New Jersey Department of the Treasury that the applicant and any co-applicant, if applicable, is in substantial good standing with the statutes, rules, and other enforceable standards of the respective department, or, if a compliance issue exists, the applicant or any co-applicant, has entered into an agreement with the respective department, which may include a corrective action plan, as applicable.

i. Substantial good standing shall be determined by each department and mean, at a minimum, that the applicant and any co-applicant:

(1) As to the Department of Labor and Workforce Development and the Department of Environmental Protection:

(A) Is in substantial compliance with all material statutes, rules, and other enforceable standards of the respective department that apply to the applicant and any co-applicant; and

(B) Has no material violations of those statutes, rules, or other enforceable standards that remain substantially unresolved through entry into a corrective action plan or other agreement with the department, with respect thereto; and

(2) As to all other departments, has no unpaid liability in excess of any threshold dollar amount(s) that may be established by each respective department.

ii. If the Department of Labor and Workforce Development, the Department of Environmental Protection, or the Department of the Treasury promulgates or issues its own more stringent rule or standard defining the term "substantial good standing," the respective department shall use such rule or standard to determine whether an entity is in substantial good standing.

2. The Authority may contract with an independent third party to perform a background check on the applicant and any co-applicant.

3. Any contractors or subcontractors that will perform work at the project shall be registered as required by the Public Works Contractor Registration Act, N.J.S.A. 34:11-56.48 et seq., shall not have been debarred by the Department of Labor and Workforce Development from engaging in or bidding on public works contracts in the State, and shall possess a tax clearance certificate issued by the Division of Taxation in the Department of the Treasury.

(c) Provided that the requirements at (b) above are satisfied, the Authority shall allocate incentive awards to projects until the available tax credits are exhausted. If insufficient funding exists to fully fund all eligible projects, a project may be offered partial funding.

(d) For a financing gap tax credit, and in accordance with an incentive award agreement, beginning upon completion of the capital investment, the receipt of the temporary certificate of occupancy or upon any other event evidencing completion of construction as set forth in the incentive award agreement, and the opening of the supermarket or grocery store for business to the public, an applicant shall be allowed a total financing gap tax credit pursuant to this Program to reimburse all or a portion of the project financing gap as follows:

1. For a project with a supermarket or grocery store that has a labor harmony agreement, not to exceed 40 percent of project costs for the first new supermarket or grocery store and 20 percent of project costs for the second new supermarket or grocery store. In lieu of a labor harmony agreement, the applicant may provide a collective bargaining agreement for the supermarket or grocery store.

2. For a project in which the supermarket or grocery store does not have a labor harmony agreement, not to exceed 30 percent of project costs for the first new supermarket or grocery store and 15 percent of project costs for the second new supermarket or grocery store.

(e) For an initial operating cost tax credit, and in accordance with an incentive award agreement, upon receipt of evidence that the applicant is operating the supermarket or grocery store on a full-time basis, an applicant shall be allowed a total initial operating cost tax credit pursuant to the Program to reimburse all or a portion of the initial operating shortfall for the eligibility period that shall not exceed 100 percent of initial operating costs for the first new supermarket or grocery store and 50 percent of initial operating costs for the second new supermarket or grocery store.

(f) The maximum amount of financing gap tax credits available to an applicant to apply annually shall be equal to the total credit amount divided by the duration of eligibility period in years, fractions of a dollar rounded down.

(g) The maximum amount of initial operating cost tax credits available to an applicant to apply annually shall be the lesser of the actual annual initial operating shortfall and the amount of tax credit not applied previously during the eligibility period.

N.J. Admin. Code § 19:31AA-1.7

Recodified from 19:31-28.7 56 N.J.R. 807(a), effective 5/6/2024