N.J. Admin. Code § 19:31Y-1.6

Current through Register Vol. 56, No. 17, September 3, 2024

Section 19:31Y-1.6 - Review and approval of completed application; tax credit amounts

(a) In each State fiscal year for which there are tax credits available for this program, the Authority shall establish the date for the availability of the application and the date by when applications must be submitted. The Authority may establish separate dates for transformative projects and for all other rehabilitation projects, provided that the dates for the transformative projects shall be before, or the same as, the dates for all other rehabilitation projects. The Authority shall provide prior public notice of these dates through its website.

(b) For rehabilitation projects eligible pursuant to section 4 at P.L. 2020, c. 156 (N.J.S.A. 34:1B-272), the Authority shall review applications submitted by the corresponding application deadline for eligibility. The review shall determine if the applicant:

1. Complies with the eligibility criteria;

2. Satisfies the submission requirements; and

3. Provides adequate information for the subject application.

(c) The Authority shall allocate tax credits to eligible rehabilitation projects, first to transformative projects, and then to other rehabilitation projects in the order determined based on the factors at (c)1 through 5 below. To receive a tax credit award, a business entity's application shall meet a minimum score. The Authority shall establish weights for the factors and the minimum score before applications are submitted for the State fiscal year and shall provide public notice of the weights through its website.

1. Historic significance of the qualified property or transformative property;

2. Existing or potential threat to the qualified property or transformative property due to physical condition, encroachment, or other factors;

3. Project concept and team, including prior and future stewardship of the building during the business entity's control of the qualifying property or transformative property;

4. Existence of site control by the business entity or certainty of obtaining site control as demonstrated by an agreement that will provide site control; and

5. Positive impact of the rehabilitation project on the surrounding neighborhood.

(d) Before the Board may consider for approval a business entity's application for tax credits:

1. The Authority will confirm with the New Jersey Department of Labor and Workforce Development, the Department of Environmental Protection, and the Department of the Treasury that the business entity and any co-applicant 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 business entity and any co-applicant, as applicable, 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 business entity and any co-applicant:

(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 business entity and any co-applicant; 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 an entity is in substantial good standing.

2. The Authority may contract with an independent third party to perform a background check on the business entity and any co-applicant.

(e) The business entity shall certify that any contractors or subcontractors that will perform work at the qualified property or transformative property are registered, as required by the Public Works Contractor Registration Act, P.L. 1999, c. 238 (N.J.S.A. 34:11-56.48 et seq.), have not been debarred by the Department of Labor and Workforce Development from engaging in, or bidding on, public works contracts in the State, and possess a tax clearance certificate issued by the Division of Taxation in the Department of the Treasury.

(f) A business entity shall be allowed a tax credit for an approved rehabilitation project that shall not exceed the following limits:

1. For the rehabilitation of a qualified property not located in a qualified incentive tract or government-restricted municipality, 40 percent of the cost of rehabilitation paid by the business entity, or an affiliate, for the rehabilitation of the qualified property, or $ 4 million, whichever is less;

2. For the rehabilitation of a qualified property located in a qualified incentive tract or government-restricted municipality, 45 percent of the cost of rehabilitation paid by the business entity, or an affiliate, for the rehabilitation of the qualified property, or $ 8 million, whichever is less; and

3. For the rehabilitation of a transformative property, 45 percent of the cost of rehabilitation paid by the business entity, or an affiliate, for the rehabilitation of the transformative property, or $ 50 million, whichever is less.

N.J. Admin. Code § 19:31Y-1.6

Recodified from 19:31-26.6 56 N.J.R. 807(a), effective 5/6/2024