N.J. Admin. Code § 19:31M-1.2
The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.
"Act" means the Business Retention and Relocation Assistance Act, P.L. 2004, c. 65.
"Affiliate" means an entity that directly or indirectly controls, is under common control with, or is controlled by the business. Control exists in all cases in which the entity is a member of a controlled group of corporations as defined pursuant to section 1563 of the Internal Revenue Code of 1986 ( 26 U.S.C. § 1563 ) or the entity is an organization in a group of organizations under common control as defined pursuant to subsection (b) or (c) of section 414 of the Internal Revenue Code of 1986 ( 26 U.S.C. § 414 ). An entity may establish by clear and convincing evidence, as determined by the Director of the Division of Taxation in the Department of the Treasury, that control exists in situations involving lesser percentages of ownership than required by those statutes.
"Agreement" or "project agreement" means an agreement between a business and the Authority that sets the forecasted schedule for completion and occupancy of the project, the date the commitment duration shall commence, the amount of the applicable grant of tax credits, and other such provisions which further the purposes of P.L. 1996, c. 25, as amended by P.L. 2004 c. 65, §§1 through 16 (34:1B-112 through 123.).
"Authority" means the New Jersey Economic Development Authority established under section 4 of P.L. 1974, c. 80 (34:1B-4 ).
"Board" means the Board of the New Jersey Economic Development Authority.
"Business" means an employer located in this State that has operated continuously in the State, in whole or in part, in its current form or as a predecessor entity for at least 10 years prior to filing an application to the program and which is subject to the provisions of 43:21-1 et seq. and may include a sole proprietorship, a partnership, or a corporation that has made an election under Subchapter S of Chapter One of Subtitle A of the Internal Revenue Code of 1986, or any other business entity through which income flows as a distributive share to its owners, limited liability company, nonprofit corporation, or any other form of business organization located either within or outside the State, such as a group of organizations under common control as defined in Section 414(b) or (c) of the Internal Revenue Code of 1986 and Federal Treasury regulations thereunder. For purposes of identifying full-time employees in eligible positions and retained State tax revenue, any such employees hired by or taxes paid by a professional employer organization (PEO) with which the business has entered into an employee leasing agreement shall be allocable to the business. A business shall include an affiliate of the business if that business applies for a credit based upon any capital investment made by an affiliate or based upon retained full-time jobs of an affiliate.
"Business employment incentive program grant" or "BEIP grant" means the grant made to a business by the New Jersey Economic Development Authority pursuant to the provisions of P.L. 1996, c. 26 (34:1B-124 et al).
"Business retention or relocation grant of tax credits" or "grant of tax credits" means a grant which consists of the value of corporation business tax credits against the liability imposed pursuant to section 5 of P.L. 1945, c.162 (54:10A-5 ) or credits against the taxes imposed on insurers pursuant to P.L. 1945, c.132 (54:18A-1 et seq.), section 1 of P.L. 1950, c.231 (17:32-15 ), and 17B:23-5, provided to fund a portion of retention and relocation costs pursuant to P.L. 1996, c. 25 (34:1B-112 et seq.), as amended by P.L. 2004, c. 65, and pursuant to this subchapter.
"Capital investment" means expenses that the business incurs following its submission of an application to the Authority pursuant to section 5 of P.L. 1996, c. 25 (34:1B-116 ), but prior to the Capital Investment Completion Date, as shall be defined in the project agreement, for: the site preparation and construction, renovation, improvement, equipping of, or obtaining and installing fixtures and machinery, apparatus or equipment in, a newly constructed, renovated or improved building, structure, facility, or improvement to real property in this State; and obtaining and installing fixtures and machinery, apparatus or equipment in a building, structure, or facility in this State. Provided, however, that "capital investment" shall not include soft costs such as financing and design, furniture or decorative items such as artwork or plants, or office equipment if the office equipment is property with a recovery period of less than five years. The recovery period of any property, for purposes of this definition, shall be determined as of the date such property is first placed in service or use in this State by the business, determined in accordance with section 168 of the Federal Internal Revenue Code of 1986 ( 26 U.S.C. § 168 ). For the purposes of this definition, cubicles and cubicles that include office equipment shall constitute capital investment. A business that acquires or leases a qualified business facility shall also be deemed to have acquired the capital investment made or acquired by the seller or landlord, as the case may be.
"Certificate of compliance" means a certificate issued by the Authority pursuant to section 9 of P.L. 1996, c. 25 (34:1B-120 ).
"Chief Executive Officer" means the Chief Executive Officer of the New Jersey Economic Development Authority.
"Commitment duration" means the tax credit term and five years from the end of the tax credit term specified in the project agreement entered into pursuant to section 5 of P.L. 1996, c. 25 (34:1B-116 ), as amended by P.L. 2004, c. 65, and pursuant to this subchapter.
"Designated industry" means an industry identified by the Authority as desirable for the State to maintain, which may be designated and amended via promulgation of rules by the Authority to reflect changing market conditions.
"Designated urban center" means an urban center designated in the State Development and Redevelopment Plan adopted by the State Planning Commission, pursuant to P.L. 1985, c.398 (52:18A-200 ).
"Director" means the Director of the Division of Taxation in the Department of the Treasury.
"Eligible position" means a full-time position retained by a business in this State for which a business provides employee health benefits under a group health plan as defined under section 14 of P.L. 1997, c. 146 (17B:27-54 ), a health benefits plan as defined under section 1 of P.L. 1992, c.162 (17B:27A-17 ), or a policy or contract of health insurance covering more than one person issued pursuant to Article 2 of Title 17B of the New Jersey Statutes.
"Fiscal year" means the State fiscal year of July 1 to June 30.
"Full-time employee" means a person employed by the business for consideration for at least 35 hours a week, or who renders any other standard of service generally accepted by custom or practice, as determined by the Authority, as full-time employment, or a person who is employed by a professional employer organization pursuant to an employee leasing agreement between the business and the professional employer organization, in accordance with P.L. 2001, c. 260 (34:8-67 et seq.) for at least 35 hours a week, or who renders any other standard of service generally accepted by custom or practice as full-time employment, as determined by the Authority, as full-time employment, and whose wages are subject to withholding as provided in the New Jersey Gross Income Tax Act, 54A:1-1 et seq. or an employee who is a resident of another state but whose income is not subject to the New Jersey Gross Income Tax Act, 54A:1-1 et seq. or who is a partner of a business who works for the partnership for at least 35 hours a week, or who renders any other standard of service generally accepted by custom or practice, as determined by the Authority, as full-time employment, and whose distributive share of income, gain, loss, or deduction, or whose guaranteed payments, or any combination thereof, is subject to the payment of estimated taxes, as provided in the New Jersey Gross Income Tax Act, 54A:1-1 et seq. "Full-time employee" shall not include any person who works as an independent contractor or on a consulting basis for the business.
"Full-time employee at the qualified business facility" means a full-time employee whose primary office is at the site and who spends at least 80 percent of his or her time at the site, or who spends any other period of time generally accepted by custom or practice as full-time employment at the site, as determined by the Authority.
"New business location" means the premises to which a business will relocate that the business has either purchased or built or for which the business has entered into a purchase agreement or a written lease for a period of no less than the commitment duration or eight years, whichever is greater, from the date of relocation. A "new business location" also means the business's current location or locations if the business makes a capital investment equal to the total value of the business retention or relocation grant of tax credits to the business at that location or locations. In the event the new business location will be at more than one location, the business may evidence that the application is for a single project through factors showing interrelatedness, such as the same business event driving the relocation, moves timed together, and full-time jobs relocated from the same business location.
"Point-of-final purchase retail facility" means a business wherein the normal and customary method of patronizing the business conducted at the facility requires the retail customer to travel to the location to purchase the goods or services of that business. "Point-of-final purchase retail facilities" shall not include catalog distribution centers for the purposes of this program.
"Program" means the Business Retention and Relocation Assistance Grant Program created pursuant to P.L. 1996, c. 25, as substantially amended by P.L. 2004, c. 65, §§1 through 16 (34:1B-112 through 123) and P.L. 2010, c. 123, and provided in this subchapter.
"Project" means the relocation or maintaining of retained full-time jobs at the approved site as improved by the new business location. In the event that the new business location will be at more than one location, the business may evidence that the application is for a single project through factors showing interrelatedness such as the same business event driving the relocation, moves timed together, and full-time jobs relocated from the same business location.
"Project agreement" means an agreement between a business and the Authority that sets the forecasted schedule for completion and occupancy of the project, the date the commitment duration shall commence, the amount and tax credit term of the applicable grant of tax credits, and other such provisions which further the purposes of P.L. 1996, c. 25 (34:1B-112 et seq.).
"Retained full-time job" means an eligible position that currently exists in New Jersey and is filled by a full-time employee but which, because of a potential relocation by the business, is at risk of being lost to another state or country. For the purposes of determining a number of retained full-time jobs, the eligible positions of an affiliate shall be considered the eligible positions of the business. A retained full-time job is one that will not be included in the calculation of a BEIP grant subsequent to being moved to the approved project site, under the agreement. The number of retained full-time jobs shall mean the business's number of permanent full-time jobs as referred to in the project description in the application and the agreement, which exist as of the effective date of the agreement. In order to demonstrate that a job meets this definition, a business must provide documentation that demonstrates the at-risk nature of these employees, which shall include a certification of the business's chief executive officer that the jobs are at-risk at being located outside of New Jersey. For the purposes of the certifications required pursuant to the incentive agreement, 34:1B-116 or 120, to the extent an eligible position that was the basis of the award no longer exists, a business may include as a retained full-time job a new eligible position that is filled by a full-time employee provided that the position is included in the order of date of hire and is not the basis for any other incentive award.
"Retained State tax revenue" means either State tax revenue received in the most recently completed State tax period or State tax revenue projected to be received from the business by the State.
"Tax credit term" means the period of time commencing with the first issuance of tax credits and continuing during the period in which the recipient of a grant of tax credits is eligible to apply the tax credits pursuant to section 7 of P.L. 2004, c. 65 (34:1B-115.3 ).
"Tax period" means the 12-month period selected by the business for the purposes of determining annual taxable income.
"Yearly tax credit amount" means $ 1,500 times the number of retained full-time jobs. "Yearly tax credit amount" does not include the amount of any bonus award authorized pursuant to section 5 of P.L. 2004, c. 65 (34:1B-115.1 ).
N.J. Admin. Code § 19:31M-1.2
See: 37 N.J.R. 3024(a), 38 N.J.R. 2165(b).
Substituted ". For" for "for" in definition "Business"; and added the last sentence in definition "Project".
Amended by R.2006 d.322, effective 9/5/2006.
See: 37 N.J.R. 4176(a), 38 N.J.R. 3618(a).
Deleted definition "Construction contract; and rewrote definition "Project".
Amended by R.2008 d.53, effective 3/3/2008.
See: 39 N.J.R. 4385(a), 40 N.J.R. 1355(a).
In definition "Business", inserted ", such as a group of organizations under common control as defined in Section 414(b) or (c) of the Internal Revenue Code of 1986 and Federal Treasury regulations thereunder".
Recodified from N.J.A.C. 12A:2-1.2 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 definition "Agreement", substituted "Authority" for "Commission"; added definitions "Authority", "Board" and "Chief Executive Officer"; deleted definitions "Board of Directors", "Commission", and "Secretary"; and rewrote definition "Full-time employee".
Amended by R.2011 d.208, effective 8/1/2011.
See: 43 N.J.R. 1192(a), 43 N.J.R. 1900(a).
Deleted definitions "Advanced computing", "Advanced computing company", "Advanced materials", "Advanced materials company", "Biotechnology", "Biotechnology company", "Electronic device technology", "Electronic device technology company", "Headquarters", "High-technology business", "Manufacturing facility", "Medical device technology", "Medical device technology company", "Research and development facility" and "Total allowable relocation costs"; added definitions "Affiliate", "Capital investment", "Certificate of compliance", "Project agreement", "Tax credit term", "Tax period" and "Yearly tax credit amount"; and rewrote definitions "Business", "Commitment duration", "Designated industry", "Full-time employee", "New business location", "Program", "Project" and "Retained full-time job".
Amended by R.2012 d.118, effective 6/18/2012.
See: 44 N.J.R. 434(a), 44 N.J.R. 1784(c).
In definition "Capital investment", inserted the last sentence; and added definition "Full-time employee at the qualified business facility".
Amended by R.2012 d.119, effective 6/18/2012.
See: 44 N.J.R. 665(a), 44 N.J.R. 1794(a).
In definition "Capital investment", rewrote the last sentence.
Amended by R.2015 d.014, effective 1/20/2015.
See: 46 N.J.R. 1593(a), 47 N.J.R. 277(b).
In definition "Retained full-time job", inserted a comma following "employees", and inserted the last sentence.