N.J. Admin. Code § 19:31S-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 Offshore Wind Economic Development Act, P.L. 2010, c. 57, as amended.
"Affiliate" means an entity that directly or indirectly controls, is under common control with, or is controlled by the business, and may include not-for-profit entities. 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). A taxpayer 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. An affiliate of a business may contribute to meeting either the qualified investment or full-time employee requirements of a business that applies for a credit under this Program.
"Approval letter" means the letter sent by the Authority that sets forth the conditions to maintain the approval and to receive the tax credit, the forecasted schedule for completion and occupancy of the project, the date the eligibility period is scheduled to commence, the estimated amount of tax credits, the process by which affiliates contributing employment or capital investment may be added, the requirement for the project site to remain a qualified wind energy facility, events that would trigger reduction and forfeiture of tax credits, tax clearance certificate requirements, and other such information that furthers the purposes of the Program. The letter also requires the applicant to permit audit(s) from time to time, as the Authority deems necessary, of the business's payroll records and any other evidence and documentation supporting the certifications pursuant to N.J.A.C. 19:31-20.7(f) and the annual reports pursuant to N.J.A.C. 19:31-20.14. The approval letter will require the applicant to submit progress information by a certain date in order to preserve the approval of the tax credits.
"Authority" means the New Jersey Economic Development Authority.
"Board" means the Board of the New Jersey Economic Development Authority.
"Business" means a corporation that is subject to the tax imposed pursuant to section 5 of P.L. 1945, c. 162 (N.J.S.A. 54:10A-5), a corporation that is subject to the tax imposed pursuant to sections 2 and 3 of P.L. 1945, c. 132 (N.J.S.A. 54:18A-2 and 54:18A-3), section 1 of P.L. 1950, c. 231 (N.J.S.A. 17:32-15) or N.J.S.A. 17B:23-5, or is a partnership, an S corporation, or a limited liability corporation. A business shall include an affiliate of the business if that business applies for a credit based upon any capital investment made by the affiliate or full-time employees of an affiliate.
"Capital investment" in a qualified wind energy facility means expenses incurred for the site preparation and construction, repair, renovation, improvement, equipping, or furnishing of a building, structure, facility, or improvement to real property, including associated soft costs, provided soft costs shall not exceed 20 percent of all capital investment. Capital investment includes obtaining and installing furnishings and machinery, apparatus, or equipment for the operation of a business in a building, structure, facility, or improvement to real property, site-related utility and transportation infrastructure improvements, plantings, or other environmental components required to attain the level of silver rating or above in the LEED(R) building rating system, but only to the extent that such capital investments have not received any grant financial assistance from any other State funding source, including N.J.S.A. 52:27H-80et seq. (The United States Green Building Council has developed the Leadership in Energy & Environmental Design (LEED) Green Building Rating System for measuring the energy efficiency and environmental sustainability of buildings. The LEED Rating System is a third-party certification program and the nationally accepted benchmark for the design, construction, and operation of high-performance buildings.) Vehicles and heavy equipment not permanently located in the building, structure, facility, or improvement shall not constitute a capital investment. Also included is remediation of the qualified wind energy facility site, but only to the extent that such remediation has not received financial assistance from any other Federal, State, or local funding source. To be included, the capital investment must be commenced after August 19, 2010, the effective date of the Act. For purposes of this subchapter, "commenced" shall mean that the project consisting of construction of a new building shall not have progressed beyond site preparation; the project consisting of acquisition of an existing building shall not have closed title; and the project consisting of renovation or reconstruction of an existing building shall not have commenced construction.
"Complex of buildings" means buildings that are part of the same financing plan and operational plan.
"Developer" means, with respect to a qualified wind energy facility, a business that intends to construct and lease a wind energy facility. A developer may seek to receive approval that the facility will constitute a qualified wind energy facility conditioned upon identification of tenants that will have qualifying employment and pro form as indicating that the capital investment requirements will be met.
"Eligibility period" means the five-year period in which a business may claim an offshore wind economic development tax credit, beginning with the tax period in which the Authority accepts the certification of the business that it has met the capital investment and employment qualifications of the Program.
"Equipment supply coordination agreement" means an agreement between a business and an equipment manufacturer, supplier, installer, or operator that supports a qualified offshore wind project, or other wind energy project as determined by the Authority, and that indicates the number of new, full-time jobs to be created by the agreement participants towards the employment requirement as set forth in N.J.A.C. 19:31-20.3. "Equipment supply coordination agreement" shall not include subcontracts or agreements between the equipment manufacturer, supplier, installer, and operator and parties other than the business that has applied for a credit under this Program..
"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 full-time employment, as determined by the Authority, 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 (N.J.S.A. 34:8-67et 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, and whose wages are subject to withholding as provided in the New Jersey Gross Income Tax Act, N.J.S.A. 54A:1-1et seq. A full-time employee is also 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, N.J.S.A. 54A:1-1et 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" shall not include an employee who is a resident of another state and whose income is not subject to the New Jersey Gross Income Tax Act, N.J.S.A. 54A:1-1et seq., unless that state has entered into a reciprocity agreement with the State of New Jersey.
"Full-time employee at the qualified wind energy 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 facility, or who spends any other period of time generally accepted by custom or practice as full-time employment in New Jersey, as determined by the Authority.
"Leasable area" means rentable area of the building as calculated pursuant to the measuring standards of the project. This standard will be defined in the lease for tenant applicants. The rentable area measures the tenant's pro rata portion of the entire office floor, including public corridors, restrooms, janitor closets, utility closets, and machine rooms used in common with other tenants, but excluding elements of the building that penetrate through the floor to areas below. The rentable area of a floor is fixed for the life of a building and is not affected by changes in corridor sizes or configuration.
"Letter of compliance" means the letter issued annually by the Authority pursuant to N.J.A.C. 19:31-20.14(e) that must accompany the use of the tax credit certificate.
"Minimum number of new full-time employees" means:
1. For the first year, at least a cumulative 100 new full-time employees compared to the number of full-time employees at the time of application;
2. For a privilege period or taxable year following the first year, at least a cumulative 150 new full-time employees compared to the number of full-time employees at the time of application;
3. For a privilege period or taxable year following the second year, at least a cumulative 200 new full-time employees compared to the number of full-time employees at the time of application; and
4. For the fourth and fifth privilege period or taxable year following the third and fourth year, respectively, at least a cumulative 300 new full-time employees compared to the number of full-time employees at the time of application.
"Net leasable area" means the usable area or actual occupiable area of a building, a floor, or an office suite. The amount of usable area can vary over the life of a building as corridors expand and contract and as floors are remodeled, and, thus, is not fixed for the life of a building as would be the case with leasable area.
"New full-time employee" means a position that did not previously exist in this State and that is created by the business and filled by a full-time employee at the qualified wind energy facility. A new full-time employee may also include new full-time employee resulting from an equipment supply coordination agreement, provided that the employee spends at least 80 percent of his or her time in New Jersey, or any other period of time in New Jersey generally accepted by custom or practice as full-time employment, as determined by the Authority. New full-time employee resulting from an equipment supply coordination agreement may include, but not be limited to, employees that have been hired by way of a labor union hiring hall or its equivalent. With regard to new full-time employees resulting from an equipment supply coordination agreement, one "new full-time employee" means 35 hours of employment per week dedicated to the work required under the agreement, or who renders any other standard of service generally accepted by custom or practice as determined by the Authority as full-time employment, regardless of whether or not the hours of work were performed by one or more persons. New full-time position shall also include new full-time positions that a business creates after receipt of approval, pursuant to N.J.A.C. 19:31-20.7, that are transferred to the qualified wind energy facility upon completion thereof and meet the requirements of this Program.
"Offshore wind economic development tax credit" means the tax credit permitted under section 6 of the Act, which may be applied against the tax liability otherwise due for corporation business tax or insurance premiums tax pursuant to section 5 of P.L. 1945, c. 162 (N.J.S.A. 54:10A-5), sections 2 and 3 of P.L. 1945, c. 132 (N.J.S.A. 54:18A-2 and 54:18A-3), section 1 of P.L. 1950, c. 231 (N.J.S.A. 17:32-15), or N.J.S.A. 17B:23-5.
"Partnership" means an entity classified as a partnership for Federal income tax purposes.
"Professional employer organization" means an employee leasing company registered with the Department of Labor and Workforce Development pursuant to P.L. 2001, c. 260 (N.J.S.A. 34:8-67et seq.).
"Program" means the Offshore Wind Economic Development Tax Credit Program created pursuant to section 6 of the Act and provided in this subchapter.
"Progress information" means the information that must be submitted pursuant to N.J.A.C. 19:31-20.7(e).
"Project" means the employment and the capital investment in a qualified wind energy facility that is at least the employment and capital investment required by the Program.
"Prorated minimum number of new full-time employees" means the minimum number of new full-time employees pursuant to N.J.A.C. 19:31-20.9(a) for a business receiving a prorated award.
"Prorated annual minimum number of new full-time employees" means for projects approved with less than 300 new full-time employees:
1. For the first year, at least a cumulative 100 new full-time employees compared to the number of full-time employees at the time of application;
2. For a privilege period or taxable year following the first year, at least a cumulative 150 new full-time employees compared to the number of full-time employees at the time of application;
3. For a privilege period or taxable year following the second year, the lesser of 200 and the applicable prorated minimum number of new full-time employees, compared to the number of full-time employees at the time of application; and
4. For the fourth and fifth privilege period or taxable year following the third year and fourth year, respectively, the applicable prorated minimum number of new full-time employees compared to the number of full-time employees at the time of application.
"Qualified offshore wind project" means the same as the term is defined in section 3 of P.L. 1999, c. 23 (N.J.S.A. 48:3-51), which is a wind turbine electricity generation facility in the Atlantic Ocean and connected to the electric transmission system in this State, and includes the associated transmission-related interconnection facilities and equipment, and approved by the New Jersey Board of Public Utilities, or any successor entity, pursuant to section 3 of P.L. 2010, c. 57 (N.J.S.A. 48:3-87.1).
"Qualified wind energy facility" means any building, complex of buildings, or structural components of buildings, including water access infrastructure, and all machinery and equipment used in the manufacturing, assembly, development, or administration of component parts that is primarily used to support the development and operation of a qualified offshore wind project, or other wind energy project as determined by the Authority. To the extent a qualified wind energy facility requires improvements to existing non-wind facilities, only the improvements shall be part of the qualified wind energy facility.
"Soft costs" means all costs associated with financing, design, engineering, legal, or real estate commissions, including, but not limited to, architect fees, permit fees, loan origination and closing costs, construction management, and freight and shipping delivery, but not including early lease termination costs, air fare, mileage, tolls, gas, meals, packing material, marketing, temporary signage, incentive consultant fees, Authority fees, loan interest payments, escrows, or other similar costs.
"Tenant" means a business that is a lessee in a qualified wind energy facility.
N.J. Admin. Code § 19:31S-1.2
See: 53 N.J.R. 1347(a), 53 N.J.R. 1922(a)."
Rewrote definitions "Approval letter", "Qualified offshore wind project", "Qualified wind energy facility", and "Soft costs"; in definition "Capital investment", inserted ", provided soft costs shall not exceed 20 percent of all capital investment" and a comma following the first occurrence of "source"; in definition "Eligibility period", substituted "five-year" for "10-year"; in definition "Full-time employee", deleted ", provided that any employee whose work is provided pursuant to a collective bargaining agreement with a business in the wind energy zone may be included" from the end; in definition "Full-time employee at the qualified wind energy facility", substituted "at the facility" for "in New Jersey"; in definition "Letter of compliance", updated the N.J.A.C. reference; in definition "Project", deleted "within a designated wind energy zone" from the end; added definitions "Minimum number of new full-time employees", "Prorated minimum number of new full-time employees", and "Prorated annual minimum number of new full-time employees"; and deleted definition "Wind energy zone".