N.J. Admin. Code § 19:31T-1.10

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

Section 19:31T-1.10 - Application for tax credit transfer certificate

(a) Tax credits, upon receipt thereof by an approved applicant from the Director and the Authority, may be transferred, by sale or assignment, in full or in part, pursuant to this section, subject to the cumulative total at N.J.A.C. 19:31T-1.11(a), to any other taxpayer who may have a tax liability pursuant to N.J.S.A. 54:10A-5 or 54A:1-1 et seq. An approved applicant shall apply to the Authority and the Director for a tax credit transfer certificate, in lieu of the approved applicant being allowed any amount of the credit against the tax liability of the approved applicant. Such application shall identify the specific tax credits to be transferred, the consideration received therefor, and the identity of the transferee. Once approved by the Chief Executive Officer of the Authority and the Director of the Division of Taxation, a tax credit transfer certificate shall be issued to the approved applicant, naming the transferee. The certificate issued to the approved applicant shall include a statement waiving the approved applicant's right to claim that amount of the tax credit against the taxes that the approved applicant has elected to sell or assign. Any amount of a tax credit transfer certificate used by a purchaser or assignee against a tax liability shall be subject to the same limitations and conditions that apply to the use of the tax credits pursuant to N.J.A.C. 19:31T-1.6.

(b) The sale or assignment of any amount of a tax credit transfer certificate allowed pursuant to this section shall not be exchanged for consideration received by the approved applicant of less than 75 percent of the transferred credit amount. In order to evidence this requirement, the approved applicant shall submit to the Authority an executed form of standard selling agreement that evidences that the consideration received by the approved applicant is not less than 75 percent of the transferred tax credit.

(c) In the event that the approved applicant is a partnership and chooses to allocate the income realized from the sale of the tax credits other than in proportion to the partners' distributive shares of income or gain of the partnership, the selling agreement shall set forth the allocation among the partners that has previously been submitted to the Director of the Division of Taxation in the Department of the Treasury pursuant to N.J.A.C. 19:31T-1.6.

(d) The Authority shall develop and make available forms of applications and certificates to implement the transfer processes described in this section.

(e) The Authority shall publish on its Internet website the following information concerning each tax credit transfer certificate approved by the Authority and the Director pursuant to this section:

1. The name of the transferrer;

2. The name of the transferee;

3. The value of the tax credit transfer certificate; and

4. The State tax against which the transferee may apply the tax credit.

N.J. Admin. Code § 19:31T-1.10

Recodified from N.J.A.C. 19:31-21.8 and special amendment by R.2024 d.022, effective 2/26/2024 (to expire 2/22/2025).
See: 56 N.J.R. 491(a),.
Former N.J.A.C. 19:31-21.10, "Affirmative action; and prevailing wage", recodified to N.J.A.C. 19:31-21.12. Substituted "approved applicant" for "taxpayer" throughout; in (a), substituted "in N.J.A.C. 19:31-21.9(a)" for "at N.J.A.C. 19:31-21.11(a)"; in (b), substituted "pursuant to" for "under" following "allowed"; and added (e).

Recodified from 19:31-21.10 56 N.J.R. 807(a), effective 5/6/2024