N.J. Admin. Code § 19:31S-1.13

Current through Register Vol. 56, No. 23, December 2, 2024

Section 19:31S-1.13 - Effect of sale or lease of qualified facilities

(a) The tax credit amount shall be forfeited in the event of sale of the qualified wind energy facility or lease or sublease of the business's tenancy as follows:

1. If the qualified wind energy facility is sold in whole or in part during the eligibility period, the new owner shall not acquire the capital investment of the seller and the seller shall forfeit all credits for the tax period in which the sale occurs and all subsequent tax periods, except that any credits of tenants shall remain unaffected. The new owner may not apply for tax credits based upon the seller's capital investment. If the business merges with or consolidates with another entity, the resulting or transferee entity shall not be considered the new owner.

2. If a tenant leases or subleases its tenancy in whole or in part during the eligibility period, the lessee or sublessee shall not acquire the credit of the lessor or sublessor, and the lessor or sublessor tenant shall forfeit all credits for the tax period of its lease or sublease and all subsequent tax periods, except that if the lessor or sublessor tenant retains sufficient capital investment and employment to remain eligible for the Program, the forfeiture shall affect only the credits attributable to the leased or subleased portion of the facility. For the purposes of calculating the total annual lease payments of the business, the lease payments of the lessee or sublessee shall be subtracted. Notwithstanding the foregoing, a business may lease or sublease a portion of its qualified business facility to any other new tenant without forfeiting any of the business's credits, but shall not include the new tenant's full-time employees and capital investment in the business's eligible full-time employees or capital investment if:

i. The leasee or subleasee is a party to any equipment supply coordination agreement;

ii. The aggregate amount leased or subleased to any other tenant comprises five percent or less of the qualified wind energy facility; or

iii. The business leases or subleases to a tenant that primarily uses the leased or subleased premises to support the development and operation of a qualified offshore wind project.

N.J. Admin. Code § 19:31S-1.13

Amended by R.2021 d.131, effective 11/15/2021.
See: 53 N.J.R. 1347(a), 53 N.J.R. 1922(a).
In the introductory paragraph of (a), inserted "lease or"; and rewrote (a)2.

Recodified from 19:31-20.13 56 N.J.R. 807(a), effective 5/6/2024