N.J. Admin. Code § 19:31Z-1.13

Current through Register Vol. 56, No. 24, December 18, 2024

Section 19:31Z-1.13 - Application for tax credit transfer certificate; assignment

(a) A developer may apply to the Director and the Chief Executive Officer of the Authority for a tax credit transfer certificate, during the privilege period in which the Director issues the developer a tax credit pursuant to section 16 at P.L. 2020, c. 156 (N.J.S.A. 34:1B-284) and N.J.A.C. 19:31Z-1.12. The tax credit transfer certificate, upon receipt thereof by the developer from the Director and the Chief Executive Officer of the Authority, may be sold or assigned, in full or in part, in an amount not less than $ 25,000, in the privilege period during which the developer receives the tax credit transfer certificate from the Director, to another person, who may apply the credit against a tax liability pursuant to section 5 at P.L. 1945, c. 162 (N.J.S.A. 54:10A-5), sections 2 and 3 at P.L. 1945, c. 132 (N.J.S.A. 54:18A-2 and 54:18A-3), section 1 at P.L. 1950, c. 231 (N.J.S.A. 17:32-15), or N.J.S.A. 17B:23-5.

(b) The developer shall not sell a tax credit transfer certificate allowed pursuant to this section for consideration received by the developer or less than 85 percent of the transferred credit amount before considering any further discounting to present value that shall be permitted, except a developer of a residential project consisting of newly constructed residential units that have received Federal low income housing tax credits pursuant to 26 U.S.C. § 42(b)(1)(B)(i) may assign a tax credit transfer certificate for consideration of no less than 75 percent subject to the submission of a plan to the Authority and the New Jersey Housing and Mortgage Finance Agency to use the proceeds derived from the assignment of tax credits to complete the residential project.

(c) A purchaser 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. If a lender that holds a tax credit certificate as collateral on a redevelopment project forecloses on the project, the foreclosure and resulting transfer of the certificate shall not be considered a sale of the transfer certificate.

(d) A tax credit transfer certificate issued by the Director and the Authority shall include a statement waiving the rights of the developer to which the tax credit has been granted to claim any amount of remaining credit against any tax liability.

(e) The tax credit transfer certificate issued to a developer by the Director shall be subject to any limitations and conditions imposed on the application of State tax credits pursuant to sections 9 through 19 at P.L. 2020, c. 156 (N.J.S.A. 34:1B-277 through 287) 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.

(f) 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. The state tax against which the transferee may apply the tax credit; and

5. Consideration received by the transferor.

N.J. Admin. Code § 19:31Z-1.13

Recodified from 19:31-27.13 56 N.J.R. 807(a), effective 5/6/2024