N.J. Admin. Code § 19:31U-1.8

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

Section 19:31U-1.8 - Determination of grant amount; bonus award

(a) The total amount of the tax credit for an eligible business for each new or retained full-time job shall be as set forth in this section. The total tax credit amount shall be calculated and credited to the business annually for each year of the eligibility period. Unless the business demonstrates to the Authority's satisfaction that a new or retained full-time job is primarily working at the qualified business facility, the tax credit for the full-time job shall be calculated with the base amount for a qualified business facility in other eligible areas and shall not include the bonuses at (d)1, 2, 6, 7, 9, 13, 15, 16, and 17 below.

(b) For a project that has a complex of buildings, the total amount of tax credit shall be calculated by combining the jobs in buildings that have the same factors set forth in this section that affect the tax credit calculation. Subject to N.J.A.C. 19:31U-1.4(c) and (d), the total amount of tax credit shall be calculated separately for jobs in a building with factors that are different than the factors affecting the calculation for jobs in the other buildings in a complex of buildings, including location of the buildings. Notwithstanding that the total tax credit for jobs in different buildings may be calculated separately, forfeitures pursuant to N.J.A.C. 19:31U-1.14 and defaults and recaptures included in the commitment agreement pursuant to N.J.A.C. 19:31U-1.9(b)6 shall be based on the aggregate capital investment and eligible full-time jobs.

(c) The base amount of the tax credit for each new or retained full-time job for an eligible business shall be as follows:

1. For a qualified business facility located within a government-restricted municipality, or that is a mega project, $ 4,000 per year;

2. For a qualified business facility located within an enhanced area, $ 3,500 per year;

3. For a qualified business facility located within a distressed municipality, $ 3,000 per year;

4. For a project in a qualified opportunity zone or an employment and investment corridor, $ 2,500 per year; and

5. For a project in other eligible areas, $ 500.00 per year.

(d) In addition to the base amount of the tax credit, the amount of the tax credit to be awarded for each new or retained full-time job shall be increased with the following bonuses, except that the Authority shall not award a bonus to an eligible business with full-time jobs at the qualified business facility, whether the full-time job is subject to the tax credit award or not, that pays less than $ 15.00 per hour or 120 percent of the minimum wage fixed at subsection a of section 5 at P.L. 1966, c. 113 (N.J.S.A. 34:11-56a 4), whichever is higher:

1. For an eligible business with a qualified business facility located in a municipality with a Municipal Revitalization Index distress score greater than 50, an increase of $ 1,000 per year;

2. For an eligible business with a qualified business facility that is an industrial or research and development premises for industrial or research and development use and at which the capital investment in the industrial or research and development portion of the premises is in excess of the minimum capital investment required for eligibility for the entire qualified business facility pursuant to subsection b of section 71 at P.L. 2020, c. 156 and N.J.A.C. 19:31U-1.3(c), an increase of $ 500.00 per year for each additional amount of investment that exceeds the minimum amount required for eligibility by 40 percent, with a maximum increase of $ 1,500 per year, unless the project qualifies as a mega project or the qualified business facility is located in a government-restricted municipality, in which case, the maximum increase is $ 5,000 per year;

3. For an eligible business with large numbers of new full-time jobs during the eligibility period, the increases shall be in accordance with the following schedule:

i. If the number of new full-time jobs is between 251 and 400, $ 500.00 per year;

ii. If the number of new full-time jobs is between 401 and 600, $ 750.00 per year;

iii. If the number of new full-time jobs is between 601 and 800, $ 1,000 per year;

iv. If the number of new full-time jobs is between 801 and 1,000, $ 1,250 per year; and

v. If the number of new full-time jobs is in excess of 1,000, $ 1,500 per year;

4. For an eligible business that annually funds a training program specific to the business's industry, which has the capacity to enroll 10 percent or more of the eligible business's full-time workforce, or pays a State educational institution to provide to the public a training program specific to the business's industry, an increase of $ 500.00 per year; provided, however, that if the training program is provided by a State educational institution that is within 10 miles of the qualified business facility, then the increase shall be $ 1,000 per year;

5. For an eligible business that qualifies as a small business, an increase of $ 500.00 per year;

6. For an eligible business with new full-time jobs and retained full-time jobs at the qualified business facility with a median salary in excess of the existing median salary for full-time workers residing in the county in which the project is located, or, in the case of a project in a government-restricted municipality, a business with employees in full-time positions at the project with a median salary in excess of the median salary for full-time workers residing in the government-restricted municipality, an increase of $ 200.00 per year for the new or retained full-time employees that are at the qualified business facility during the eligibility period for each 35 percent by which the project's median salary levels exceeds the county or government-restricted municipality median salary, with a maximum increase of $ 1,000 per year;

7. For an eligible business engaged primarily in a targeted industry, an increase of $ 500.00 per year;

8. For an eligible business with a qualified business facility located in a qualified incubator facility, an increase of $ 500.00 per year;

9. For an eligible business that enters into a labor harmony agreement, an increase of $ 2,000 per year that the portion of the project as represented by the new or retained full-time employees that are the subject of the labor harmony agreement is in effect; provided further that an eligible business receiving a bonus under this subparagraph may exceed the limitation applicable to the eligible business pursuant to (e) below by an amount not to exceed $ 1,000;

10. For an eligible business that provides its employees access to child care either through an on-site quality child care facility free of charge to its employees or by offering employees a minimum of $ 1,500 per employee per year in reimbursements, subsidies, or vouchers to be paid by the eligible business to its employees for the cost of child care in accordance with standards adopted by the Authority and made available on the Authority's website, an increase of $ 1,000 per year;

11. For an eligible business that enters, or has previously entered, into an active partnership with a re-entry program for the purpose of identifying and promoting employment opportunities at the eligible business for former inmates and current inmates leaving the corrections system, and that hires at least one active participant in the re-entry program as a full-time employee, an increase of $ 500.00 per year;

12. For an eligible business with a qualified business facility that exceeds the Leadership in Energy and Environmental Design's "Silver" rating standards, but does not exceed "Gold" rating standards, or that completes substantial environmental remediation, an additional increase of $ 250.00 per year, or for an eligible business with a qualified business facility that exceeds the Leadership in Energy and Environmental Design's "Gold" rating standards, an additional increase of $ 500.00 per year;

13. For an eligible business in a targeted industry with a qualified business facility that is used by the eligible business to conduct a full-time collaborative research relationship with a college or university, including, but not limited to, a doctoral university, an increase of $ 1,000 per year. The full-time collaborative research relationship must commence after approval of the application and must require at least 35 hours per week of collaborative activity, or any other standard of collaborative activity generally accepted by custom or practice as full-time, as determined by the Authority, and evidenced by an agreement at certification. To be eligible for this bonus, the agreement must remain in effect each year of the eligibility period;

14. For an eligible business with a project that generates solar, geo-thermal, wind, or any other renewable or distributed energy on site for use within the qualified business facility of an amount that equals at least 50 percent of the qualified business facility electric supply service needs, an increase of $ 500.00 per year;

15. For an eligible business with a marine terminal project in a municipality located outside a government-restricted municipality, but within the geographical boundaries of the South Jersey Port District, an increase of $ 1,500 per year;

16. For an eligible business with a qualified business facility located in a qualified opportunity zone, an increase of $ 1,000 per year; and

17. For an eligible business if one-third or more of the members of the eligible business's governing board or other governing body self-identify as members of an underrepresented community, which shall be Black, African American, Hispanic, Latino, Asian, Pacific Islander, Native American, Native Hawaiian, Alaska Native, or lesbian, gay, bisexual, or transgender, an increase of $ 2,000 per year for each new or retained full-time job. The Authority shall work with the State's Chief Diversity Officer or other State entities to ensure that the bonus provided pursuant to this paragraph is implemented faithfully and in compliance with the law.

(e) Except as provided at (d)10 above, the gross amount of the tax credit available to an eligible business for each new or retained full-time job shall be the sum of the base amount set forth at (c) above and the various additional bonus amounts for which the business is eligible pursuant to (d) above, subject to the following limitations:

1. For a mega project or a project in a government-restricted municipality, the gross amount for each new or retained full-time job shall not exceed $ 8,000 per year;

2. For a qualified business facility located within an enhanced area, the gross amount for each new or retained full-time job shall not exceed $ 6,000 per year;

3. For a qualified business facility within a distressed municipality, the gross amount for each new or retained full-time job shall not exceed $ 5,000 per year;

4. For a qualified business facility in a qualified opportunity zone or an employment and investment corridor, the gross amount for each new or retained full-time job shall not exceed $ 4,000 per year; and

5. For a qualified business facility in other eligible areas, the gross amount for each new or retained full-time job shall not exceed $ 3,000 per year.

(f) The Authority shall reduce the gross amount of tax credits per full-time job if the median salary of new full-time jobs and retained full-time jobs subject to the project agreement is less than the existing median salary for full-time workers residing in the county in which the qualified business facility is located or for a project located in a government-restricted municipality, if the median salary of new full-time jobs and retained full-time jobs subject to the project agreement is less than the existing median salary for the municipality in which the qualified business facility is located. The Authority shall reduce the gross amount of tax credits per full-time job by an amount, in percentage points, equal to the percentage the median salary of new full-time jobs and retained full-time jobs subject to the project agreement is below the existing median salary for full-time workers residing in the county or government-restricted municipality in which the qualified business facility is located. The Authority shall not award a tax credit to an eligible business if the median salary of new full-time jobs and retained full-time jobs that would otherwise be subject to the project agreement is 30 percent or more below the relevant existing median salary for full-time workers residing in the county or government-restricted municipality in which the qualified business facility is located.

(g) After the determination by the Authority of the gross amount of tax credits for which an eligible business is eligible pursuant to (e) and (f) above, the final total tax credit amount shall be calculated as follows: for each new full-time job, the eligible business shall be allowed tax credits equaling 100 percent of the gross amount of tax credits for each new full-time job; and for each retained full-time job, the eligible business shall be allowed tax credits equaling 50 percent of the gross amount of tax credits for each retained full-time job.

(h) Notwithstanding the provisions at (a) through (g) above to the contrary, for each application approved by the Board, the amount of tax credits available to be applied by the business annually shall not exceed an amount determined by the Authority to be necessary to induce the project to be sited in New Jersey, as determined by the Board. The Authority shall determine the amount necessary to complete the project through staff analysis of all locations under consideration by the eligible business and all lease agreements, ownership documents, or substantially similar documentation for the eligible business's proposed in-State locations and potential out-of-State location alternatives, competitive proposals from other states, the prevailing economic conditions, and any other information that the Authority deems relevant, that may include, but is not limited to, public policy goals, the amount of space dedicated to eligible positions at the qualified business facility, net positive economic benefits, and leadership in targeted industries.

N.J. Admin. Code § 19:31U-1.8

Amended by R.2022 d.058, effective 5/16/2022.
See: 54 N.J.R. 124(a), 54 N.J.R. 909(b).
Rewrote (d) and (f); and in (h), substituted "at" for "of" following "provisions" and "proposed" for "current" following "business's".

Recodified from 19:31-22.8 56 N.J.R. 807(a), effective 5/6/2024