N.J. Admin. Code § 19:31O-1.3

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

Section 19:31O-1.3 - Eligibility criteria

(a) Program eligibility requires that:

1. A business shall have operated continuously in New Jersey, in whole or in part, in its current form or as a predecessor entity, for at least 10 years prior to filing an application with the Authority;

2. A business certify and represent that the availability of financial assistance from the State as would be provided in the approval of the business's application for the program will be an important inducement to the business to undertake the project and to relocate full-time jobs in the State; and

3. A business shall satisfy at least one of the following four criteria:

i. The business has 1,000 or more full-time employees in the State and the project involves relocating 500 or more full-time employees into a new business location or locations;

ii. The business is a life sciences business or a manufacturing facility and the project is: constructing one or more new research and development facilities, constructing one or more new manufacturing facilities in this State, or relocating to a new headquarters in this State that will employ 250 or more full-time employees whose jobs are retained full-time jobs.

iii. The business is a life sciences business or a manufacturing business and the project is constructing a new, or substantially rehabilitating a vacant, property that will separately or collectively:

(1) Be predominantly a new research and development facility;

(2) Be predominantly a new manufacturing facility;

(3) House the headquarters of the business; or

(4) Separately or collectively be a combination of (a)3iii(1), (2), and (3) above; provided, that the new or substantially rehabilitated facility will house a minimum of 250 full-time employees whose jobs are retained full-time jobs. For the purposes of this sub-subparagraph, "predominantly" means a majority of the employees housed in the new facility are engaged in that activity; or a majority of the square footage of the new facility is used in that activity; or a majority of the total value of the investment made will be employed in that activity; or other measures of activity as may be determined by the Secretary that demonstrate that a critical concentration of research and development, manufacturing, or both, will occur at the new facility; or

iv. The business was, at the time of enactment of P.L. 2004, c. 65, § 21, receiving a structured finance special guarantee pursuant to N.J.A.C. 19:31A-1.1(c)3ii(5) for the project.

(b) For the purposes of determining a number of full-time employees pursuant to this section, the full-time employees of the members of a "controlled group of corporations" as defined pursuant to section 1563 of the Federal Internal Revenue Code of 1986, 26 U.S.C. § 1563, shall be considered the employees of a single employer.

(c) In addition to the eligibility criteria at (a) above, the project must be located at an approved site.

1. To be an approved site, the location for the project shall be situated in designated Planning Area 1 or 2, as defined in the State Development and Redevelopment Plan adopted by the State Planning Commission (pursuant to P.L. 1985, c. 398 (N.J.S.A. 52:18A-196 et seq.)).

2. Notwithstanding (c)1 above, a project involving the renovation or expansion of an existing facility that is not located in designated Planning Area 1 or 2 may be eligible to participate in the program, at the determination of the Secretary, if all other applicable criteria are satisfied.

3. A business located in an urban enterprise zone designated pursuant to the New Jersey Urban Enterprise Zones Act, P.L. 1983, c. 303 (N.J.S.A. 52:27H-60 et seq.) as of June 30, 2004, shall not be eligible to participate in this program if the relocation project is from a facility within the urban enterprise zone to a facility outside an urban enterprise zone.

4. Notwithstanding (c)3 above, if the relocation is to a facility already owned or leased by the same business and that business already employs at least the same number of persons as those being relocated from the urban enterprise zone, it may be eligible to apply.

(d) Program eligibility further requires that a business shall provide evidence and certify that it is not in default with any other program administered by the State of New Jersey.

(e) A project may be completed in up to two phases provided that it will be the national headquarters of a life sciences or manufacturing company, and will include a significant research and development, a significant manufacturing facility, or combination thereof if:

1. The first completed phase will house at least 200 full-time employees and the second phase will house at least 100 additional employees; and

2. The project is pre-approved for phases and that all phases are completed within 30 months of project approval.

(f) If a project consists of both point-of-purchase retail facilities, as defined at N.J.A.C. 19:31M-1.2, and non-retail facilities, only the portion consisting of non-retail facilities shall be eligible for the sales tax exemption.

N.J. Admin. Code § 19:31O-1.3

Amended by R.2006 d.197, effective 5/15/2006.
See: 37 N.J.R. 3024(a), 38 N.J.R. 2165(b).
Added (f).
Recodified from N.J.A.C. 12A:2A-2.3 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)1, substituted "Authority" for "Commission"; and in (f), updated the N.J.A.C. reference.

Recodified from 19:31-16.3 56 N.J.R. 807(a), effective 5/6/2024