N.J. Admin. Code § 19:31S-1.12

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

Section 19:31S-1.12 - Reduction and forfeiture of tax credits

(a) If, in any tax period during the eligibility period, the business reduces the total number of full-time employees in its Statewide workforce by more than 20 percent from the number of full-time employees in its Statewide workforce in the last tax accounting or privilege period prior to the credit amount approval under the Program, then the business shall forfeit its credit amount for that tax period and each subsequent tax period until the first tax period for which documentation demonstrating the restoration of the business's Statewide workforce to the threshold levels required by this section has been reviewed and approved by the Authority, for which tax period and each subsequent tax period the full amount of the credit shall be allowed. For purposes of this section, "business" shall include any affiliate that has contributed to the capital investment, received the tax credit or contributed to the required full-time employees at the qualified wind energy facility. A company with which the recipient has an equipment supply coordination agreement is not considered an affiliate for the purposes of this section. The number of full-time employees in a business's Statewide workforce shall not include a new full-time employee at the qualified wind energy facility.

(b) If, in any tax period during the eligibility period, the aggregate number of new full-time employees at the qualified wind energy facility and resulting from an equipment supply coordination agreement drops below the minimum number of new full-time employees or prorated annual minimum number of new full time employees, as applicable, then the business shall forfeit its credit amount for that tax period and each subsequent tax period, until the first tax period of which documentation demonstrating the restoration of the number of new full-time employees employed at the qualified wind energy facility and resulting from an equipment supply coordination agreement to the minimum number of new full-time employees or prorated annual minimum number of new full-time employees, as applicable, has been reviewed and approved by the Authority, for which tax period and each subsequent tax period the full amount of the annual credit shall be allowed.

(c) The credit amount for any tax period ending after January 13, 2026, which is the date 18 years after the effective date of P.L. 2007, c. 346 (N.J.S.A. 34:1B-207 et seq.), during which the documentation of a business's credit amount remains unapproved shall be forfeited, although credit amounts for the remainder of the years of the eligibility period shall remain available.

(d) In the event that any certification required from the business or the other party to any equipment supply coordination agreement, including, but not limited to, the certifications required pursuant to N.J.A.C. 19:31S-1.14(a)2, is found to be willfully false or that the business submitted false or misleading information or failed to submit relevant information in the application or any other submission to the Authority or the Division of Taxation, the Authority may, at its sole discretion and in addition to any other remedies available, revoke and/or terminate any award of tax credits in their entirety and may recapture all or a portion of the tax credits received by the business.

(e) For projects with a commitment pursuant to N.J.A.C. 19:31S-1.3(c) to maintain the project at the qualified wind energy facility after the eligibility period, the Authority may recoup all or a portion of the tax credits awarded if the business does not maintain the project at the qualified wind energy facility for the period of years after the eligibility period based on a recoupment schedule in the approval letter. The business shall have 12 months to restore the new full-time jobs to 300 or the applicable prorated minimum number of new full-time employees before the Authority may recoup any amount of tax credits.

(f) Any recapture or recoupment pursuant to (d) or (e) above may include interest on the recapture amount, at a rate equal to the statutory rate for tax deficiencies, plus any statutory penalties, and all costs incurred by the Authority and the Division of Taxation in the Department of the Treasury in connection with the pursuit of the recapture, including, but not limited to, counsel fees, court costs, and other costs of collection. The Authority shall confer with the Division of Taxation to determine the recapture or recoupment amount.

N.J. Admin. Code § 19:31S-1.12

Amended by R.2021 d.131, effective 11/15/2021.
See: 53 N.J.R. 1347(a), 53 N.J.R. 1922(a).
In (a), inserted "during the eligibility period" and the third sentence; rewrote (b) and (e); in (d), substituted "recapture all or a portion of the" for "require repayment of""; and added (f).

Recodified from 19:31-20.12 56 N.J.R. 807(a), effective 5/6/2024