N.J. Admin. Code § 19:31T-1.11

Current through Register Vol. 56, No. 24, December 18, 2024

Section 19:31T-1.11 - Cap on total credits

(a) The value of tax credits, including tax credits allowed through the granting of tax credit transfer certificates, approved by the Director and the Authority pursuant to N.J.A.C. 19:31T-1.6(a) shall be as follows:

1. Pursuant to N.J.S.A. 54:10A-5.39b.e(1) and 54A:4-12b.f(1), to approved applicants, other than studio partners and film-lease production companies, the cumulative total shall not exceed $ 100,000,000 in fiscal year 2019, and in each fiscal year thereafter prior to fiscal year 2040, as indicated by the tax credit vintage period, to apply against the tax imposed pursuant to N.J.S.A. 54:10A-5 and the tax imposed pursuant to the New Jersey Gross Income Tax Act, N.J.S.A. 54A:1-1 et seq.

2. For studio partners and film-lease production companies:

i. Pursuant to N.J.S.A. 54:10A-5.39b.e(1) and 54A:4-12b.f(1), except as provided at (a)2ii and iii below, the cumulative total shall not exceed $ 100,000,000 in fiscal year 2021 and in each fiscal year thereafter prior to fiscal year 2024, and shall not exceed a cumulative total of $ 150,000,000 in fiscal year 2024 and in each fiscal year thereafter prior to fiscal year 2040, to apply against the tax imposed pursuant to N.J.S.A. 54:10A-5 and the tax imposed pursuant to the New Jersey Gross Income Tax Act, N.J.S.A. 54A:1-1 et seq.

ii. Pursuant to N.J.S.A. 34:1B-362.d, notwithstanding the provisions of any other law to the contrary, the uncommitted balance of the total value of tax credits authorized for award by the Authority pursuant to N.J.S.A. 34:1B-362.b(1)(f) to the New Jersey Aspire Program Act, N.J.S.A. 34:1B-322 through N.J.S.A. 34:1B-335, and the Emerge Program Act, N.J.S.A. 34:1B-336 through N.J.S.A. 34:1B-348, $ 250,000,000 shall be made available for tax credits allowed in fiscal years 2023, 2024, and 2025.

iii. Pursuant to N.J.S.A. 34:1B-362.b(1)(i), 54:10A-5.39b.e(1), and 54A:4-12b.f(1), beginning in fiscal year 2023, in addition to the cumulative total tax credits made available for studio partners pursuant to (a)2i and ii above, up to an additional $ 400,000,000 may be made available annually to studio partners and $ 250,000,000 for film-lease production companies, in the discretion of the Authority, for the award of tax credits, including tax credits allowed through the granting of tax credit transfer certificates, from the funds made available pursuant to N.J.S.A. 34:1B-362.b(1)(i), from the tax credits made available pursuant to N.J.S.A. 34:1B-362.f to the New Jersey Aspire Program Act, N.J.S.A. 34:1B-322 through N.J.S.A. 34:1B-335, and the Emerge Program Act, N.J.S.A. 34:1B-336 through N.J.S.A. 34:1B-348, not including tax credits awarded for transformative projects.

3. If the applicable cumulative total amount of tax credits initially approved and tax credit transfer certificates approved for privilege periods or taxable years commencing during a single fiscal year pursuant to N.J.A.C. 19:31T-1.6(a) exceeds the amount of tax credits available in that fiscal year, then applicants who have first applied for and have not been approved a tax credit or tax credit transfer certificate amount for that reason shall have their applications approved by the Authority, provided the applications otherwise satisfies the requirements of the program, and shall be allowed the amount of tax credit or tax credit transfer certificate on the first day of the next succeeding fiscal year in which tax credits and tax credit transfer certificates pursuant to N.J.A.C. 19:31T-1.6(a) are not in excess of the amount of applicable credits available.

(b) The value of tax credits, including tax credits allowed through the granting of tax credit transfer certificates, approved by the Authority and the Director pursuant to N.J.A.C. 19:31T-1.6(b) shall not exceed a cumulative total of $ 30,000,000 in fiscal year 2019, and in each fiscal year thereafter prior to fiscal year 2040, as indicated by the tax credit vintage year, to apply against the tax imposed pursuant to N.J.S.A. 54:10A-5 and the tax imposed pursuant to the New Jersey Gross Income Tax Act, N.J.S.A. 54A:1-1 et seq. If the total amount of tax credits initially approved and tax credit transfer certificates approved for privilege periods or taxable years commencing during a single fiscal year pursuant to N.J.A.C. 19:31T-1.6(b) exceeds the amount of tax credits available in that year, then applicants who have first applied for and who have not been approved a tax credit or tax credit transfer certificate amount for that reason shall have their tax credits considered for initial approval and their tax credit transfer certificates considered for approval, in the order in which they have submitted an application, the amount of tax credit or tax credit transfer certificate on the first day of the next succeeding fiscal year in which tax credits and tax credit transfer certificates pursuant to N.J.A.C. 19:31T-1.6(b) are not in excess of the amount of credits available.

(c) Notwithstanding any provision at (a) above to the contrary, for any fiscal year in which the amount of tax credits approved to studio partners, film-lease production companies, or approved applicants other than studio partners and film-lease production companies pursuant to N.J.A.C. 19:31T-1.6(a) and N.J.S.A. 54:10A-5.39b(1)(a) and 54A:4-12b(2)(a) is less than the cumulative total amount of tax credits permitted to be approved to each such category, in that fiscal year, the Authority shall certify the amount of the remaining tax credits available for approval to each such category in that fiscal year, and shall increase the cumulative total amount of tax credits permitted to be approved for studio partners, film-lease production companies, or approved applicants other than studio partners and film-lease production companies in the subsequent fiscal year by the certified amount remaining for each such category from the prior fiscal year. The Authority shall also certify, for each fiscal year, the amount of tax credits that were previously approved, but that the approved applicant is not able to redeem or transfer to another taxpayer pursuant to this subchapter, and shall increase the cumulative total amount of tax credits permitted to be approved for studio partners, film-lease production companies, or applicants other than studio partners and film-lease production companies in the subsequent fiscal year by the amount of tax credits previously approved for each such category, but not subject to redemption or transfer.

(d) Notwithstanding any provision at (b) above to the contrary, for any fiscal year in which the amount of tax credits approved pursuant to N.J.A.C. 19:31T-1.6(b) and N.J.S.A. 54:10A-5.39b(1)(b) and 54A:4-12b(2)(b) is less than the cumulative total amount of tax credits permitted to be approved in that fiscal year, the Authority shall certify the amount of the remaining tax credits available for approval in that fiscal year, and shall increase the cumulative total amount of tax credits permitted to be approved in the subsequent fiscal year by the certified amount remaining from the prior fiscal year. The Authority shall also certify, for each fiscal year, the amount of tax credits that were previously approved, but that the approved applicant is not able to redeem or transfer to another taxpayer pursuant to this section and shall increase the cumulative total amount of tax credits permitted to be approved in the subsequent fiscal year by the amount of tax credits previously approved, but not subject to redemption or transfer.

(e) Notwithstanding any provision of this section or other law to the contrary, if a film production company designated as a studio partner ceases to qualify for its designation as a studio partner and becomes designated as a film-lease partner facility, the Authority shall reduce the cumulative total amount of tax credits, including tax credits allowed through the granting of tax credit transfer certificates, made available to studio partners in each fiscal year and shall increase the cumulative total amount of tax credits permitted to be approved for film-lease production companies in each fiscal year by a corresponding amount equal to the lesser of:

1. One third; and

2. The greater of the percentage of the studio partner's number of film tax credit applications out of the volume of applications submitted by studio partners and film-lease production companies, the percentage of the cumulative total amount of tax credits approved for the studio partner out of the cumulative total amount of tax credits approved to studio partners and film-lease production companies in the prior fiscal year, and the percentage of the studio partner's square footage out of the total square footage of production facility space occupied in the State by studio partners and production facilities.

N.J. Admin. Code § 19:31T-1.11

Amended by R.2020 d.007, effective 1/6/2020.
See: 51 N.J.R. 1256(a), 52 N.J.R. 58(b).
In (a), substituted "fiscal year in which the tax credit was initially approved" for "tax credit vintage year".
Recodified from N.J.A.C. 19:31-21.9 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. 19:31-21.11, "Severability", recodified to N.J.A.C. 19:31-21.14. Rewrote (a); in (b), substituted "$ 30,000,000" for "$ 10,000,000", "2040" for "2024", inserted "the New Jersey Gross Income Tax Act,", substituted "pursuant to" for "under" twice, and "applicants" for "taxpayers"; and added (c) through (e).

Recodified from 19:31-21.11 56 N.J.R. 807(a), effective 5/6/2024