N.J. Admin. Code § 19:31O-1.7

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

Section 19:31O-1.7 - Project approval agreement

(a) If the Board approves the application to the program, participation in the program is conditioned upon the applicant executing a project approval agreement with the Chief Executive Officer to establish the terms and the conditions of the project approval, which shall include, but not be limited to:

1. For a tenant with capital investment expenses incurred on behalf of the tenant by a landlord, prior to execution of the project agreement, the tenant shall provide documentation satisfactory to the Authority consistent with the chief executive officer's certification at N.J.A.C. 19:31O-1.5(a)2xiii, which may include, but not be limited to, a lease or letter of credit that demonstrates in the event of an early termination of the lease that the tenant is financially liable for the cost of the capital investment.

(b) The terms and conditions of the project approval agreement shall include, but not be limited to, the following:

1. Terms establishing the starting date, or event that will determine the starting date and ending date, of the commitment duration;

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 exemption term.

3. An agreement by the applicant that the four-year statute of limitations for the collection and assessment of sales and use 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 an important inducement 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 scope and use of the sales tax exemption;

10. Default and remedies; and

11. Reporting requirements.

N.J. Admin. Code § 19:31O-1.7

Recodified from N.J.A.C. 12A:2A-2.7 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 "Board" for "Secretary" and "Chief Executive Officer" for "Secretary".
Amended by R.2011 d.243, effective 10/3/2011.
See: 43 N.J.R. 1415(a), 43 N.J.R. 2622(a).
Rewrote (a); added new (b)2; and recodified former (b)2 through (b)10 as (b)3 through (b)11.

Recodified from 19:31-16.7 56 N.J.R. 807(a), effective 5/6/2024