N.J. Admin. Code § 19:31K-1.5

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

Section 19:31K-1.5 - Evaluation process

(a) When all of the required information is received, the Authority shall perform its own review based on the standards set forth at N.J.A.C. 19:31K-1.3.

(b) After completing its review pursuant to (a) above, a preliminary determination shall be made by the Authority as to the merits of the request and its adherence to the statutory requirements of the program. Upon this determination, the applicant will receive notification of preliminary approval that will state the conditions that must be met before the Authority will issue final approval. The notification of preliminary approval will state that the Authority will forward the application to the Division of Taxation only upon receipt of the following:

1. A Buying Business Information Sheet which identifies the buyer, the amount of tax benefits to be sold and the selling price;

2. A Tax Benefit Identification Form on which the applicant lists the amount of tax benefits they wish to sell and the years that the Net Operating Loss's and/or Research and Development tax credits were incurred;

3. A Private Financial Assistance Form specifying how the applicant will expend the private financial assistance for allowable expenditures for the operations of the company;

4. An executed form of the standard selling agreement, with the Private Financial Assistance Form attached as an exhibit; and

5. If the applicant was authorized to sell and did sell tax benefits in the prior year, a spending certification that attests that the applicant spent the proceeds of the prior year's sale of tax benefits in accordance with the prior year's Private Financial Assistance Form.

(c) After approval of the tax benefit by the Division of Taxation as evidenced by the issuance of a tax certificate which will be sent to the Authority, the Authority will issue final approval of the grant only upon the receipt of a certificate from the applicant, dated the date of the closing of the sale of the tax benefit certificate that states, among other matters, the number of employees employed on that date by the applicant in the United States of America and in New Jersey, and that as of the date of the certificate, the company is operating as a new or expanding emerging biotechnology or technology business and has no current intention to cease operating as a new or expanding emerging biotechnology or technology business.

(d) Upon the final approval of the tax benefit by the Division of Taxation, a non-refundable fee of one percent of the amount of the final allocation of tax benefit less the application fee of $ 1,000 shall be charged prior to approval by the Authority.

N.J. Admin. Code § 19:31K-1.5

Amended by R.2002 d.254, effective 8/5/2002.
See: 34 N.J.R. 1603(a), 34 N.J.R. 2800(b).
In (a), rewrote 4 and 5i.
Amended by R.2002 d.334, effective 10/7/2002.
See: 34 N.J.R. 2414(a), 34 N.J.R. 3531(b).
Rewrote (b) and (c).
Amended by R.2003 d.443, effective 11/3/2003.
See: 35 N.J.R. 3466(a), 35 N.J.R. 5162(a).
Rewrote (c).
Amended by R.2006 d.284, effective 8/7/2006.
See: 38 N.J.R. 1801(a), 38 N.J.R. 3184(c).
Rewrote (a)4 through (a)6.
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), substituted "the standards set forth in N.J.A.C. 19:31-12.3." for "the following minimum criteria:"; deleted (a)1 through (a)6; and in (c), inserted "the number of employees employed on that date by the applicant in the United States of America and in New Jersey, and" and deleted the last sentence.
Amended by R.2022 d.052, effective 4/18/2022.
See: 54 N.J.R. 122(a), 54 N.J.R. 718(b).
Added (d).

Recodified from 19:31-12.5 56 N.J.R. 807(a), effective 5/6/2024