N.J. Admin. Code § 19:31X-1.6

Current through Register Vol. 57, No. 1, January 6, 2025

Section 19:31X-1.6 - Tax credit transfer certificate

(a) A tax credit purchaser may apply to the Authority and the Director for a tax credit transfer certificate, in the privilege period during which the Director allows the tax credit purchaser a tax credit pursuant to N.J.A.C. 19:31X-1.5(b), in lieu of the tax credit purchaser being allowed to apply any amount of the tax credit against the tax credit purchaser's State tax liability. A tax credit may be sold or assigned, in full or in part, to another person that may have a tax liability pursuant to section 5 at P.L. 1945, c. 162 (N.J.S.A. 54:10A-5), in an amount not less than $ 100,000. The tax credit transfer certificate provided to the tax credit purchaser shall include a statement waiving the tax credit purchaser's right to claim the credit that the tax credit purchaser has elected to sell or assign. If all or part of a tax credit sold or assigned is subject to recapture, then the Authority shall pursue recapture from the initial tax credit purchaser and not from the subsequent purchaser or assignee of the tax credit transfer certificate.

(b) The tax credit purchaser shall not sell or assign a tax credit transfer certificate allowed pursuant to this section for consideration received by the tax credit purchaser of less than 85 percent of the transferred credit amount before considering any further discounting to present value that shall be permitted. The tax credit transfer certificate issued to a tax credit purchaser by the Director shall be subject to any limitations and conditions imposed on the application of State tax credits pursuant to section 26 at P.L. 2020, c. 156 (N.J.S.A. 34:1B-294), this subchapter, and any other terms and conditions that the Director may prescribe, including, but not limited to, any applicable statutes of limitations for claiming a refund or credit.

(c) A buyer or assignee of a tax credit transfer certificate pursuant to this section shall not make any subsequent transfers, assignments, or sales of the tax credit transfer certificate.

(d) Ten percent of the consideration received by a tax credit purchaser from the sale or assignment of a tax credit transfer certificate pursuant to this section shall be remitted to the Director prior to the issuance of the tax credit transfer certificate. The Director shall deposit the funds in the General Fund of the State.

(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 transferor;

2. The name of the transferee;

3. The value of the tax credit transfer certificate;

4. That the tax credit may be applied against State tax liability pursuant to section 5 at P.L. 1945, c. 162 (N.J.S.A. 54:10A-5); and

5. The consideration paid by the transferee, identified as the consideration received by the transferor and the amount paid to the State pursuant to (d) above.

N.J. Admin. Code § 19:31X-1.6

Recodified from 19:31-25.6 56 N.J.R. 807(a), effective 5/6/2024