N.J. Admin. Code § 19:31T-1.9

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

Section 19:31T-1.9 - Recapture and reduction of tax credits

(a) If a studio partner fails to occupy the production facility developed, purchased, or leased as a condition of designation as a studio partner for the duration of the commitment period or otherwise fails to satisfy the conditions for designation as a studio partner, the Authority shall revoke the designation of the studio partner and recapture the portion of the tax credit from the studio partner that was only available to the studio partner or any film production company by virtue of the studio partner's designation as a studio partner, and all the studio partner's films for which an initial approval has been given, but for which the Authority has not given final approval, shall terminate.

(b) If a film-lease partner facility fails to operate the production facility developed, purchased, or leased as a condition of designation as a film-lease partner facility or otherwise fails to satisfy the conditions for designation as a film-lease partner facility for the duration of the five-year period, the Authority shall revoke the designation of the film-lease partner facility and recapture the portion of the tax credit from the film-lease partner facility that was only available to film-lease production companies by virtue of the film-lease partner facility's designation as a film-lease partner facility, and all films from film-lease production companies that relied on the film-lease partner facility designation for which an initial approval has been given, but for which the Authority has not given final approval, shall terminate.

(c) If an approved applicant has received tax credits on the basis of deferred compensation and the supplemental report from the independent certified public accountant does not evidence actual payment of the deferred compensation, the Authority shall recapture the amount of the tax credit that was based on the projected deferred compensation. If the approved applicant fails to submit the supplemental report by the date required, the Authority shall recapture all of the tax credit based on the projected deferred compensation.

(d) If, at any time, the Authority determines that a designated studio partner or film-lease partner facility made a material misrepresentation on its application or any submission pursuant to this program, the Authority shall revoke the designation and studio partner or film-lease partner facility shall forfeit, and the Authority may recapture any or all of, the tax credits awarded to the studio partner or any film production company approved for tax credits by virtue of the designation, which shall be in addition to any other remedies in any approval letter, award agreement, and any criminal or civil penalties to which the approved applicant and the respective officer may be subject.

(e) If, at any time, the Authority determines that an approved applicant for a tax credit made a material misrepresentation on the approved applicant's application or any submission pursuant to this program, the approved applicant shall forfeit, and the Authority may recapture any or all of, the tax credits awarded pursuant to the program, which shall be in addition to any other remedies in any approval letter, award agreement, and any criminal or civil penalties to which the approved applicant and the respective officer may be subject.

(f) Any funds recaptured pursuant to this section, including penalties and interest, shall be deposited into the General Fund of the State.

N.J. Admin. Code § 19:31T-1.9

Special new rule, 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. 19:31-21.9, "Cap on total credits", recodified to N.J.A.C. 19:31-21.11.

Recodified from 19:31-21.9 56 N.J.R. 807(a), effective 5/6/2024