N.J. Admin. Code § 19:31M-1.10

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

Section 19:31M-1.10 - Project agreement

(a) All applicants shall execute an approval letter and a project agreement with the Authority to establish the terms and the conditions of the grant of tax credits. The approval letter will be subject to conditions subsequent that must be met in order to retain the award of tax credits. Such conditions shall include, but not be limited to, the execution of a project agreement.

(b) The Authority staff may provide whatever assistance the Authority deems appropriate in the preparation of an application for approval of a project and may issue grants of tax credits pursuant to the project agreement entered between the Authority and the business.

(c) The project agreement shall include, but not be limited to, the following terms or conditions as determined by the Chief Executive Officer:

1. The month and year in which the business will relocate its employees, the month and year in which the business will submit information relating to the relocation of the required number of retained employees required pursuant to N.J.A.C. 19:31M-1.11(b) and, if applicable, the certification required pursuant to (c)2 below, and the State fiscal years for which the tax credits are allocated, which will not be subject to change without written approval of the Authority. Failure to adhere to these dates may lead to forfeiture of all or a part of the tax credits;

2. A requirement that a certification by a certified public accountant relating to the amount of eligible capital investment with supporting evidence satisfactory to the Authority shall be submitted by the business or, in the case of a tenant, the landlord prior to the commencement of the tax credit term. Provided that such certification and supporting evidence are satisfactory to the Authority, the tax credit certificate will be issued within 90 days of submission;

3. An agreement by the applicant that the four-year statute of limitations for the collection and assessment of corporation business tax and insurance premiums tax will be extended to the period of the commitment duration;

4. Certifications by the business, including the following: eligibility for the program and participation in the program as a material factor in the business' decision not to relocate outside of New Jersey and to relocate the project in the State;

5. Requirements for undertaking the project;

6. Requirements on maintaining the existence of the business and not relocating the project;

7. Representations that the business is in good standing, the project complies with all applicable law, and specifically, that the project does not violate any environmental law;

8. Indemnification and insurance requirements;

9. Limitations on the grant of tax credits;

10. Default and remedies; and

11. Reporting requirements.

(d) The project agreement shall further provide that the Authority is not liable in damages for the issuance or use of the tax credits; and that there is no guarantee that legislation will not be enacted that would cause further changes at P.L. 1996, c. 25 (N.J.S.A. 34:1B-112 et seq.)

N.J. Admin. Code § 19:31M-1.10

Amended by R.2006 d.322, effective 9/5/2006.
See: 37 N.J.R. 4176(a), 38 N.J.R. 3618(a).
In (c), substituted "The" for "In the case of a business relocating between 250 and 499 full-time employees, the" at the beginning.
Recodified from N.J.A.C. 12A:2-1.10 and amended by R.2010 d.231, effective 10/18/2010.
See: 42 N.J.R. 1495(b), 42 N.J.R. 2436(a).
In (a), substituted "Authority" for the first occurrence of "Secretary" and "Chief Executive Officer" for the second through fifth occurrences of "Secretary"; in the introductory paragraph of (b), substituted "Chief Executive Officer" for "Secretary"; and in (b)3, substituted "Certifications" for "Unless excepted under N.J.A.C. 12A:2-1.3(e)1, certifications".
Amended by R.2011 d.208, effective 8/1/2011.
See: 43 N.J.R. 1192(a), 43 N.J.R. 1900(a).
Rewrote the section.
Amended by R.2012 d.118, effective 6/18/2012.
See: 44 N.J.R. 434(a), 44 N.J.R. 1784(c).
Rewrote (a); deleted former (d); and recodified (e) as (d).

Recodified from 19:31-14.10 56 N.J.R. 807(a), effective 5/6/2024