N.J. Admin. Code § 19:31W-1.6

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

Section 19:31W-1.6 - Evaluation process; approval and award of tax credits

(a) The Authority shall conduct a review of the applications on a first in time rolling basis commencing with the completed application bearing the earliest submission date, subject to an annual cap of $ 10 million in any State fiscal year. Completed applications submitted in a fiscal year where the annual cap has been met will be considered first in the subsequent fiscal year. The review will determine whether the applicant:

1. Complies with all program eligibility criteria;

2. Satisfies the submission requirements, including fee requirements; and

3. Provides adequate information for the subject application.

(b) Before the Board may consider a taxpayer's application for tax credits:

1. The Authority will confirm with the Department of Labor and Workforce Development, the Department of Environmental Protection, and the Department of the Treasury that the taxpayer is in compliance by being in substantial good standing with the statutes, rules, and other enforceable standards of the respective department, or, if a compliance issue exists, the taxpayer has entered into an agreement with the respective department that includes a practical corrective action plan, as applicable.

i. Substantial good standing shall be determined by each department and mean, at a minimum, that the taxpayer:

(1) As to the Department of Labor and Workforce Development and the Department of Environmental Protection:

(A) Is in substantial compliance with all material statutes, rules, and other enforceable standards of the respective department that apply to the taxpayer; and

(B) Has no material violations of those statutes, rules, or other enforceable standards that remain substantially unresolved through entry into a corrective action plan, or other agreement with the department, with respect thereto; and

(2) As to all other departments, has no unpaid liability in excess of any threshold dollar amount(s) that may be established by each respective department.

ii. If the Department of Labor and Workforce Development, the Department of Environmental Protection, or the Department of the Treasury promulgates or issues its own more stringent rule or standard defining the term "substantial good standing," the respective department shall use such rule or standard to determine whether a taxpayer is in substantial good standing.

2. The Authority may contract with an independent third-party to perform a background check on the taxpayer.

(c) Upon completion of the review of an application pursuant to (a) and (b) above, and receipt of a recommendation from Authority staff on the application, the Board shall determine whether or not to approve the application, and the maximum amount of tax credits to be granted and shall promptly notify the applicant and the Director of the Division of the determination.

(d) Upon Board approval, the Authority shall provide the taxpayer with the approval letter set forth at N.J.A.C. 19:31W-1.8. The taxpayer shall execute and return the approval letter to the Authority within the period of time required by the Authority. Absent extenuating circumstances or the Authority's determination, in its sole discretion, the Authority's approval of the tax credits shall expire if the Authority does not receive the approval letter within the required period of time.

(e) Upon receipt of the executed approval letter from the taxpayer, the Authority shall notify the Director of receipt of the approval letter, and the taxpayer shall receive its tax credit certificate.

N.J. Admin. Code § 19:31W-1.6

Recodified from 19:31-24.6 56 N.J.R. 807(a), effective 5/6/2024