N.J. Admin. Code § 19:65-2.10

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

Section 19:65-2.10 - Approval of hotel development projects and allocation of investment credit

(a) With respect to allocating the $ 75,000,000 set aside under P.L. 1996, c. 118, the Authority shall proceed as follows:

1. With respect to hotel development projects approved on or prior to September 16, 1996, the Authority shall determine the amount of investment credit which would have been provided to each licensee had there been sufficient investment funds available to fund such projects at the maximum amount of investment and shall allocate to each respective licensee, subject to compliance by the licensee with the terms and conditions set forth in N.J.A.C. 19:65-2.4(d)1, the difference between the investment amount actually allocated to the licensee and the maximum amount of investment it would have received had there been sufficient funds.

i. In the event that the aggregate additional amount of investment credit required to bring each licensee to the maximum amount of investment it would have received had there been sufficient funds is equal to or less than $ 75,000,000, the Authority shall allocate that amount of funds to raise each respective licensee's original allocation to the amount each licensee would have received had there been sufficient funds.

ii. In the event that the aggregate additional amount of investment credit required to bring each licensee to the maximum amount of investment it would have received had there been sufficient funds is in excess of $ 75,000,000, the Authority shall allocate the $ 75,000,000 proportionately among the respective licensees based upon a formula pursuant to which the amount of investment credit allocated to each licensee bears the same relationship to $ 75,000,000 as the amount of funds necessary to raise each licensee's original allocation to the amount each licensee would have received had there been sufficient funds bears to the aggregate additional amount of investment credit required to bring each licensee to the maximum amount of investment it would have received had there been sufficient funds.

2. Thereafter, with respect to hotel development projects approved following September 16, 1996, the Authority shall determine the estimated cost of each approved hotel development project and the amount of investment credit available to each licensee based upon the estimated cost of each approved hotel development project.

i. In the event that the estimated aggregate amount of investment credit available to all licensees for such approved hotel development projects is equal to or less than the amount of the $ 75,000,000 fund remaining after the allocations made under (a)1 above, the Authority shall allocate to each respective licensee, subject to compliance by the licensee with the terms and conditions set forth in N.J.A.C. 19:65-2.4(d)2, the full amount of investment credit available to that licensee for its respective approved hotel development project.

ii. In the event that the estimated aggregate amount of investment credit available to all licensees for such approved hotel development projects is in excess of the amount of the $ 75,000,000 fund remaining after the allocations made under (a)1 above, the Authority shall allocate proportionately among the respective licensees, subject to compliance by the licensee with the terms and conditions set forth in N.J.A.C. 19:65-2.4(d)2, the amount of investment credit available based upon a formula pursuant to which the amount of investment credit allocated to each licensee bears the same relationship to the amount remaining from the $ 75,000,000 fund after the allocations made under (a)1 above as the estimated amount of investment credit available to such licensee for such licensee's approved hotel development project bears to the estimated aggregate amount of investment credit available to all licensees for such approved hotel development projects.

(b) If an approved hotel development project is abandoned or terminated or any funds set aside for such projects are not invested by the Authority as the result of the failure of a licensee to comply with the provisions of the Act, as amended by P.L. 1996, c. 118, or the rules contained in this chapter, the Authority shall recapture the investment credit with respect to such hotel development project and allocate such amount in accordance with the provisions of (a) above.

(c) Notwithstanding anything in these rules to the contrary, the Authority shall not permit a licensee, granted a license following September 16, 1996, during the first 10 years of its operations to satisfy its investment tax obligations or to credit future tax obligations through investment in a hotel development project or to transfer or exchange present or future investment tax obligations in connection with a hotel development project.

N.J. Admin. Code § 19:65-2.10

Emergency New Rule, R.1993 d.478, effective 8/30/1993 (expires October 29, 1993).
See: 25 New Jersey Register 4514(a).
Adopted Concurrent Proposal, R.1993 d.605, effective 10/29/1993.
See: 25 New Jersey Register 4514(a), 25 New Jersey Register 5523(a).
Amended by R.1997 d.136, effective 3/17/1997.
See: 29 New Jersey Register 115(a), 29 New Jersey Register 934(a).
Substantially amended the section.
Amended by R.1997 d.263, effective 6/16/1997.
See: 29 New Jersey Register 1292(a), 29 New Jersey Register 2677(a).
Added (a)2.