N.J. Admin. Code § 19:31K-1.4

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

Section 19:31K-1.4 - Application to the program

(a) Each application submitted by a selling business to the program shall be accompanied by a non-refundable $ 1,000 application fee. Complete applications must be received by June 30 for each State fiscal year.

(b) In order for the Department of Treasury, Division of Taxation to issue a certificate, each application submitted to the program shall include: a selling business application which includes the information set forth in (c) below; a spending certification form attesting to having spent the proceeds of the prior year's sale of tax benefits in accordance with the definition of allowable expenditures; a Buying Business Information Sheet which identifies the buying business name, address, telephone number, the estimated value of benefits to be transferred in an amount equal to at least 80 percent of the surrendered tax benefit and from whom and a business certification; an agreement between the buying and selling business defining the terms of the sale of the certificate; and the Tax Benefit Identification Form which summarizes the accumulated net operating losses and research and development credits authorized to be sold and the value intended to be sold. For determination of eligibility for the program, the initial application package shall also include a selling business application and a spending certification form.

(c) In addition to the material specified in (b) above, a completed application shall include, but is not limited to:

1. A description of the nature of the business conducted by the company;

2. A company business plan;

3. Financial statements for the two most recent full years of operation;

4. A list of all affiliates and subsidiaries as reflected on the consolidated financial statements of the applicant and the number and location of all employees of such corporation(s);

5. A list of all entities and affiliated groups of corporations that directly or indirectly own or control 50 percent or greater of the selling business, the number and location of all employees of any such entity and affiliated group of corporations, and the two most recent full years of financial statements for each such entity and affiliated group of corporations that must report net operating income in its financial statements;

6. A list of all entities that form a consolidated group of affiliated corporations, as filed for Federal income tax purposes, the number and location of all employees of such corporation(s), and financial statements for the two most recent full years of operation;

7. A representation as to the location of the applicant's primary place of business in an Innovation Zone;

8. A description of the applicant's technology or biotechnology business which shall demonstrate that such business is the primary business of the applicant and that the applicant meets the other criteria of the definition of technology or biotechnology business. Where applicable, documentation of protected proprietary intellectual property must be provided;

9. A list of all full-time employees employed in this State, including Social Security number for each, address on record with the applicant for each employee, whether the employee has submitted a Certificate of Non-residence for an exemption from the New Jersey Gross Income Tax, whether any employee is pursuing a higher education degree, if so known to the applicant, whether any employee is related, as defined in Section 152(d)(2) of the Internal Revenue Code, to any other employee, shareholder, or investor if so know to the applicant, and copies of most recent year's Federal and New Jersey W-3 forms for applicant, parent company, and all related entities, or documentation from a professional employer organization summarizing W-2 forms issued on behalf of the applicant, parent company, and all related entities in New Jersey and in the United States for the calendar year prior to the year in which the company files its application and at the time of the application;

10. The employment offer letter, resume, and job description for every employee hired in the current year;

11. A list of 100 percent of ownership of the applicant by percentage;

12. A copy of the certificate of incorporation/formation for the applicant and its earliest predecessor entity; and

13. Any other supplemental information required by the Authority.

(d) Applications are processed through several layers of staff review and may then be recommended for consideration and official action of the Board.

(e) The Division of Taxation, Department of the Treasury separately reviews applicants and may make recommendations regarding program eligibility.

N.J. Admin. Code § 19:31K-1.4

Amended by R.2000 d.297, effective 7/17/2000.
See: 32 N.J.R. 1705(a), 32 N.J.R. 2602(c).
In (a), rewrote the second sentence.
Amended by R.2001 d.242, effective 7/16/2001.
See: 33 N.J.R. 1567(a), 33 N.J.R. 2495(b).
In (a), deleted "July 28, 1999 for consideration in State FY 00 and by" preceding "June 30"; in (c)3, inserted "and/or tax returns for the same periods" at the end of the paragraph.
Amended by R.2002 d.254, effective 8/5/2002.
See: 34 N.J.R. 1603(a), 34 N.J.R. 2800(b).
In (c), substituted "three" for "two" in 3, rewrote 4 and 5, deleted former 10 and 11, recodified former 12 as 10 and deleted "and projected two years", and recodified former 13 as 11.
Amended by R.2003 d.297, effective 7/21/2003.
See: 35 N.J.R. 1655(a), 35 N.J.R. 3393(a).
Rewrote (a).
Amended by R.2006 d.284, effective 8/7/2006.
See: 38 N.J.R. 1801(a), 38 N.J.R. 3184(c).
In (a)1 and (a)2, substituted "$ 1,500" for "$ 1,000"; rewrote (a)3; and rewrote (c).
Amended by R.2008 d.164, effective 6/16/2008.
See: 40 N.J.R. 1630(a), 40 N.J.R. 3748(a).
In the introductory paragraph of (a), inserted ", including new, recertification and returning applications," and "$ 2,500", and deleted "as outlined in (a)1 through (a)3 below" following "fee"; and deleted (a)1 through (a)3.
Amended by R.2010 d.206, effective 10/4/2010.
See: 42 N.J.R. 1348(a), 42 N.J.R. 2322(b).
In (a), deleted ", including new, recertification and returning applications," following "program"; in (b), inserted "in an amount equal to at least 80 percent of the surrendered tax benefit"; rewrote (c)3; deleted former (c)4 and (c)5; recodified former (c)6 through (c)8 as (c)4 through (c)6; in (c)6, inserted "financial statements for" preceding "the two most" and substituted "operation" for "financial statements for each"; deleted former (c)9 through (c)12; recodified former (c)13 as (c)7; in (c)7, deleted "or a state-sponsored incubator site" following "Zone"; added new (c)8 through (c)11; deleted (c)14; and recodified former (c)15 as (c)12.
Amended by R.2013 d.099, effective 8/5/2013.
See: 45 N.J.R. 1098(a), 45 N.J.R. 1921(b).
Rewrote (c)4 and (c)9; in (c)5 and (c)6, substituted "entities" for "corporations"; added new (c)10; recodified former (c)10 through (c)12 as (c)11 through (c)13; in (c)11, deleted "percent" following "ownership"; rewrote (c)12; and in (e), inserted "the".
Amended by R.2015 d.135, effective 8/17/2015.
See: 47 N.J.R. 987(a), 47 N.J.R. 2186(a).
Rewrote (c)5.
Amended by R.2022 d.052, effective 4/18/2022.
See: 54 N.J.R. 122(a), 54 N.J.R. 718(b).
In (a), substituted "$ 1,000" for "$ 2,500"; and in (d), substituted "Board" for "Authority's Board of Directors at its scheduled public meeting".

Recodified from 19:31-12.4 56 N.J.R. 807(a), effective 5/6/2024