N.J. Admin. Code § 19:31M-1.16

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

Section 19:31M-1.16 - Remedies

(a) Upon the occurrence of any event of default as described in N.J.A.C. 19:31M-1.15 and the project agreement, the Authority may, so long as such event of default is continuing, do one or more of the following as the Chief Executive Officer in his or her sole discretion shall determine, without limiting any other right or remedy the Authority or the Division of Taxation may have on account of such event of default:

1. The Authority may require the surrender by the business to the Authority of the tax credit certificate for suspension or cancellation; and/or

2. The Authority may exercise any other right or remedy that may be available under applicable law or under the project agreement, including, without limitation:

i. Recapturing all (for example, if a business is unable to certify the minimum job threshold during the commitment duration) or a portion of the grant of tax credits upon failure of the business to maintain for the remainder of the commitment duration 80 percent of the retained full-time jobs that it had during the last year of the tax credit term;

ii. Notifying the Director, who shall issue a recapture assessment which shall be based upon the proportionate value of the grant of tax credits that corresponds to the amount and period of noncompliance;

iii. Recovering damages for loss of a bargain for any default during the commitment duration;

iv. Terminating the project agreement; or

v. Proceeding by appropriate court action (legal or equitable) to enforce the terms of the project agreement.

(b) For the purposes of determining the amount of the grant of tax credits to be recaptured, the amount shall include the sum of the following:

1. A cash payment in the amount of tax credits which were applied by the business or its assignee which amount may be reduced as set forth in (a)2i above;

2. Interest on the repayment amount referred to in (b)1 above at the rate equal to the statutory rate for tax deficiencies plus any penalties pursuant to the State Uniform Tax Procedure Law, 54:49-1 et seq.; and

3. All costs incurred by the Authority and the Division of Taxation in connection with the pursuit of the sales tax repayment amount (including, but not limited to, counsel fees, court costs and other costs of collection).

(c) The rights and remedies of the Authority under this subchapter and the project agreement shall be cumulative and shall not exclude any other rights and remedies of the Authority or the Division of Taxation allowed by law with respect to any event of default under this subchapter of the project agreement.

N.J. Admin. Code § 19:31M-1.16

Recodified from N.J.A.C. 12A:2-1.15 and amended by R.2010 d.178, effective 8/16/2010.
See: 42 N.J.R. 904(a), 42 N.J.R. 1900(b).
In the introductory paragraph of (a), updated the N.J.A.C. reference. Former N.J.A.C. 12A:2-1.16, Appeals, recodified to N.J.A.C. 12A:2-1.17.
Recodified from N.J.A.C. 12A:2-1.16 and amended by R.2010 d.231, effective 10/18/2010.
See: 42 N.J.R. 1495(b), 42 N.J.R. 2436(a).
Substituted "Chief Executive Officer" for "Secretary" throughout; and in the introductory paragraph of (a), updated the N.J.A.C. reference.
Amended by R.2011 d.208, effective 8/1/2011.
See: 43 N.J.R. 1192(a), 43 N.J.R. 1900(a).
Substituted "Authority" for "Chief Executive Officer" throughout; rewrote (a)2; added new (b); and recodified former (b) as (c).

Recodified from 19:31-14.16 56 N.J.R. 807(a), effective 5/6/2024