N.J. Admin. Code § 19:31K-1.7

Current through Register Vol. 56, No. 21, November 4, 2024

Section 19:31K-1.7 - Allocation of tax benefits

(a) The Program is authorized to provide no more than $ 75,000,000 of tax benefits over each State fiscal year. Of the $ 75,000,000 of transferable tax benefits authorized for each State fiscal year, $ 15,000,000 shall be allocated exclusively among the eligible companies that operate within the boundaries of the innovation zones or opportunity zones or for new or expanding emerging technology and biotechnology companies that are certified as a woman- or minority-owned business at the time of program application, except as provided at (a)2ii below. In the event the total amount of transferable tax benefits approved exceeds these limitations or any subsequent limitations, the Authority shall allocate the transfer of tax benefits as follows:

1. Each company is limited to a maximum lifetime tax benefit of $ 20,000,000.

2. The Authority shall allocate the $ 15,000,000 designated for eligible companies in innovation zones or opportunity zones or for new or expanding emerging technology and biotechnology companies that are certified as a woman- or minority-owned business at the time of program application, as follows:

i. For eligible companies in innovation zones or opportunity zones or for new or expanding emerging technology and biotechnology companies that are certified as a woman- or minority-owned business at the time of program application, each company is eligible for an allocation of the lesser of $ 250,000 or the value of their eligible benefits. After these allocations are made to these companies from the $ 15,000,000 innovation zone/new or expanding emerging technology and biotechnology allocation, any remaining balance of the $ 15,000,000 shall be apportioned among eligible companies in innovation zones with unmet eligible benefits on a pro rata basis;

ii. If, in any State fiscal year, there is an unused portion of the $ 15,000,000 allocated exclusively for companies in innovation zones or opportunity zones or for new or expanding emerging technology and biotechnology companies that are certified as a woman- or minority-owned business at the time of program application, that portion shall be available for that State fiscal year for the surrender of transferable tax benefits by new and/or expanding emerging technology and biotechnology businesses that do not operate within the boundaries of an innovation zone or that are new or expanding emerging technology and biotechnology companies that are certified as a woman- or minority-owned business at the time of program application; and

iii. The eligible companies in innovation zones or opportunity zones or for new or expanding emerging technology and biotechnology companies that are certified as a woman- or minority-owned business at the time of program application with remaining unmet eligible benefits shall participate in the allocation of the remaining pool as set forth at (a)3 below.

3. The Authority shall allocate the remaining tax benefits as follows:

i. Businesses with less than $ 250,000 in tax benefits will be authorized to sell all of their benefits in the current year;

ii. Businesses with more than $ 250,000 in tax benefits will be authorized to sell at least $ 250,000 of their benefits in the current year; and

iii. If the total amount of benefits authorized at (a)2 and 3i and ii above exceeds $ 75,000,000, each applicant shall receive a lesser amount on an apportioned basis, otherwise after the dollars are set aside in the amounts provided at (a)2 and 3i and ii above, the remaining funds available to the program, in that fiscal year, shall be allocated among the businesses with more than $ 250,000 of tax benefits. The available tax benefits shall be determined by reducing the amount of tax benefits to be transferred for each business by the minimum amount of tax benefits authorized for that business and then multiplying that amount by the following factor:

Numerator of Fiscal Year Dollar Authorization less Total Minimum Tax Benefits Authorized over denominator of Total Tax Benefits Requested to be Transferred less Total Minimum Tax Benefits Authorized.

The total minimum tax benefits authorized is the amount authorized for businesses with less than $ 250,000 of tax benefits plus the minimum tax benefits authorized for businesses with more than $ 250,000 of tax benefits. The total tax benefits requested to be transferred is the total amount of tax benefits requested to be transferred by all businesses.

N.J. Admin. Code § 19:31K-1.7

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), deleted "$ 50,000,000 of tax benefits over State fiscal year 2000 and" following "provide" in the introductory paragraph.
Amended by R.2005 d.274, effective 8/15/2005.
See: 37 N.J.R. 1714(a), 37 N.J.R. 3058(a).
In (a), rewrote the introductory paragraph and added new 4, recodified 4 as 5.
Administrative correction.
See: 37 N.J.R. 3724(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 the introductory paragraph of (a), deleted ", $ 10 million shall be so allocated for eligible companies that operate within the boundaries of the innovation zones in each respective State fiscal year thereafter" from the end of the second sentence; in (a)3, inserted "also" in the second sentence, and added the last sentence; and in (b), substituted "applicants" for "applications".
Amended by R.2010 d.206, effective 10/4/2010.
See: 42 N.J.R. 1348(a), 42 N.J.R. 2322(b).
Rewrote the section.
Amended by R.2013 d.099, effective 8/5/2013.
See: 45 N.J.R. 1098(a), 45 N.J.R. 1921(b).
In (a)1, substituted "$ 15,000,000" for "$ 15 million"; in the introductory paragraph of (a)2, and in (a)2i and (a)2ii, substituted "$ 10,000,000" for "$ 10 million" throughout; and in (a)3iii, substituted "$ 60,000,000" for "$ 60 million".
Amended by R.2022 d.052, effective 4/18/2022.
See: 54 N.J.R. 122(a), 54 N.J.R. 718(b).
Rewrote the section.

Recodified from 19:31-12.7 56 N.J.R. 807(a), effective 5/6/2024