N.J. Admin. Code § 19:31S-1.9

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

Section 19:31S-1.9 - Tax credit amount; application and allocation of the tax credit

(a) The amount of the credit awarded pursuant to the Program for projects creating 300 or more new full-time employees during the eligibility period shall, except as otherwise provided, be equal to the capital investment previously approved by the Board and made by the business, or the capital investment represented by the business' leased area, or area owned by the business as a condominium, except as may be limited by the net positive economic benefits test and shall be taken over the eligibility period, at the rate of one-fifth of the total amount of the business' credit for each tax accounting or privilege period of the business, beginning with the tax period in which the business is first approved by the Authority as having met the investment capital, employment, and any other eligibility requirements, subject to any reduction or disqualification provided at P.L. 2018, c. 17 and this subchapter, as determined by annual review by the Authority. The amount of the credit allowed pursuant to the Program for projects creating less than 300 new full-time employees, but at least 150 new full-time employees during the eligibility period shall be set, as follows:

1. Fifty percent of the capital investment for projects creating 150 new full-time employees and less than 200 new full-time employees. For projects receiving this prorated award, the prorated minimum number of new full-time employees shall be 150 new full-time employees.

2. Sixty five percent of the capital investment for projects creating 200 new full-time employees and less than 250 new full-time employees. For projects receiving this prorated award, the prorated minimum number of new full-time employees shall be 200 new full-time employees.

3. Eighty five percent of the capital investment for projects creating 250 new full-time employees and less than 300 new full-time employees. For projects receiving this prorated award, the prorated minimum number of new full-time employees shall be 250 new full-time employees.

(b) In no event shall the amount of tax credits exceed the amount of tax credits previously approved by Board as follows:

1. If the owner uses space in a qualified wind energy facility, in order to determine the amount of the owner's capital investment that will be attributed toward the amount of its tax credit, the Authority shall multiply the owner's capital investment by a fraction, the numerator of which is the net leaseable area of the qualified wind energy facility not leased to tenants and the denominator of which is the total net leaseable area.

2. In order to determine the amount of the tenant's capital investment that will be attributed toward the amount of its tax credits, the Authority shall add the amount of capital investment that results from the calculation in N.J.A.C. 19:31S-1.3(b) to any tenant allowance provided by the owner in the lease and any tenant improvements funded by a tenant, provided that the owner has not included such tenant allowance or tenant improvements in its calculation of capital investment and further provided that such tenant allowance or tenant improvements meet the definition of capital investment.

(c) The business may apply the credit against its corporation business tax or insurance premiums tax otherwise due pursuant to section 5 at P.L. 1945, c. 162 (N.J.S.A. 54:10A-5), sections 2 and 3 at P.L. 1945, c. 132 (N.J.S.A. 54:18A-2 and 54:18A-3), section 1 at P.L. 1950, c. 231 (N.J.S.A. 17:32-15), or N.J.S.A. 17B:23-5. The credit awarded to the business using one or more affiliates to satisfy the employment and/or capital investment requirements of the Program shall be applied on the basis of the allocation(s) submitted pursuant to the application, or as subsequently adjusted pursuant to N.J.A.C. 19:31S-1.14 provided, however, that any affiliate that receives an allocation must have contributed either capital investments to the qualified wind energy facility or employees at the qualified wind energy facility during the tax period for which the tax credits are issued.

(d) The amount of credit awarded for a tax period to a business that is a tenant in a qualified business facility shall not exceed the business's total lease payments for occupancy for the tax period.

(e) A business that is a partnership shall not be awarded a credit under the Program directly, but the amount of credit of a corporate owner of a business shall be determined by allocating to each corporate owner of the partnership that proportion of the credit of the business that is equal to the corporate owner of the partnership's share, whether or not distributed, of the total distributive income or gain of the partnership for its tax period ending within or at the end of the owner's tax period, or that proportion that is allocated by an agreement, if any, among all the owners of the partnership that has been provided to the Director of the Division of Taxation in the Department of the Treasury by the time and accompanied by the additional information as the Director may require consistent with any rule, guidance, or other publication issued by the Division of Taxation.

(f) The tax credits are not refundable and shall not result in a refund in the event that they do not equal or exceed a business's tax liability.

(g) The credit amount that may be taken for a tax period of the business that exceeds the final liabilities of the business for the tax period may be carried forward for use by the business in the next 20 successive tax periods, and shall expire thereafter.

N.J. Admin. Code § 19:31S-1.9

Amended by R.2021 d.131, effective 11/15/2021.
See: 53 N.J.R. 1347(a), 53 N.J.R. 1922(a).
Rewrote the section.

Recodified from 19:31-20.9 56 N.J.R. 807(a), effective 5/6/2024