N.J. Admin. Code § 19:31Z-1.15

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

Section 19:31Z-1.15 - Forfeiture and recapture of tax credits

(a) Failure to timely submit the annual report or progress report, pursuant to N.J.A.C. 19:31Z-1.11, absent extenuating circumstances or the written approval of the Authority, may result in forfeiture or recapture of a proportional amount of the tax credit award.

(b) In any year in which the developer is not in substantial good standing with the Department of Labor and Workforce Development, the Department of Environmental Protection, or the Department of the Treasury pursuant to N.J.A.C. 19:31Z-1.9(c)13, the developer may forfeit or recapture some or all of the tax credit award.

(c) If any worker employed to perform building services work at the redevelopment project is paid less than the prevailing wage rate for the worker's craft or trade pursuant to P.L. 2007, c. 245 (N.J.S.A. 34:1B-5.1) and N.J.A.C. 19:31Z-1.14(c) during the relevant tax period, then the developer shall forfeit or the Authority shall recapture, a proportional amount of the tax credit.

(d) If the labor harmony agreement requirement pursuant to N.J.A.C. 19:31Z-1.9(d) is not satisfied, the developer shall forfeit or recapture some or all of the tax credit award.

(e) For a redevelopment project that includes redevelopment activities after completion of the remediation required for the redevelopment project, if the developer does not complete the redevelopment project after the issuance of the tax credits or if the developer does not comply with a requirement of the Program applicable to the redevelopment project after completion of the remediation, including, but not limited to, prevailing wage or affirmative action requirements pursuant to N.J.A.C. 19:31Z-1.14(a) and (b), the Authority may recapture some or all of the tax credits awarded.

(f) If, based on new information, the Authority determines that forfeiture or recapture should have been applicable pursuant to any of the provisions in this section, the Authority shall recapture the tax credits as if the Authority had been timely informed.

(g) If, at any time, the Authority determines that the developer made a material misrepresentation on the developer's application, progress report, remediation completion certification, annual report, or any submission to the Authority or the Department, the developer shall forfeit or the Authority shall recapture, some or all of the tax credits of the developer, which shall be in addition to any other remedies in the redevelopment agreement and any criminal or civil penalties to which the developer and the respective officer of the developer may be subject.

(h) Any recapture amount pursuant to this section may include interest on the recapture amount, at a rate equal to the statutory rate for tax deficiencies, plus any statutory penalties, and all costs incurred by the Authority and the Division of Taxation in the Department of the Treasury in connection with the pursuit of the recapture, including, but not limited to, administrative costs, counsel fees, court costs, and other costs of collection. The Authority shall confer with the Division of Taxation in the Department of the Treasury to determine the recapture amount.

(i) If all or part of a tax credit sold or assigned pursuant to section 17 at P.L. 2020, c. 156 (N.J.S.A. 34:1B-285) and N.J.A.C. 19:31Z-1.13 is subject to recapture, the Authority shall pursue recapture from the developer, and not from the purchaser or assignee of the tax credit transfer certificate.

(j) The Authority shall notify the Director of any funds recaptured pursuant to this section. Any recaptured funds, including penalties and interest, shall be deposited into the State General Fund.

N.J. Admin. Code § 19:31Z-1.15

Recodified from 19:31-27.15 56 N.J.R. 807(a), effective 5/6/2024