N.J. Admin. Code § 5:47-2.2

Current through Register Vol. 56, No. 23, December 2, 2024

Section 5:47-2.2 - Tax credit allowable

(a) Credits may be granted in an amount up to 100 percent of the approved assistance provided to a nonprofit organization to implement a qualified neighborhood preservation and revitalization project.

(b) The credit may be applied by the business entity receiving the certificate as credit against tax imposed on business related income, including, but not limited to, business income subject to the provisions of the Corporation Business Tax Act (1945), P.L. 1945, c. 162 (54:10A-1 et seq.), the New Jersey Gross Income Tax Act, 54A:1-1 et seq., the Savings Institution Tax Act, P.L. 1973, c. 31 (N.J.S.A. 54:10D-1 et seq.), the tax imposed on marine insurance companies pursuant to N.J.S.A. 54:161 et seq., the tax imposed on insurers generally, pursuant to P.L. 1945, c. 132 (54:18A-1 et seq.), the sewer and water utility excise tax imposed pursuant to section 6 of P.L. 1940, c. 5 (54:30A-54) and the petroleum products gross receipts tax imposed pursuant to section 3 of P.L. 1990, c. 42 (54:15B-3) .

1. For a taxpayer applying credit to liability due pursuant to the New Jersey Gross Income Tax Act, 54A:1-1 et seq., the credit allowed pursuant to this section shall only be applied to the amount of gross income tax liability for the taxable year that, as a percentage of gross income tax liability, is equal to the percentage of the taxpayers gross income that is attributable to the taxpayers business entity through which the taxpayer provided the funding for the qualified project. For purposes of determining the amount of gross income tax liability to which a credit allowed pursuant to this section may be applied, gross income shall be calculated without the application of exclusions or deductions.

(c) The credit allowed to a business entity under this section may not exceed for any taxable year $ 1,000,000 or the total amount of tax otherwise payable by the business entity for the taxable year, whichever is less, and, in addition, shall not exceed limitations placed on the amounts of credits or carry forward credits allowed, if any, under the relevant statute as enumerated in (b) above concerning the tax for which a credit is being claimed.

(d) Credit shall not be allowed for activities for which the business entity is receiving credit under any other provision against any tax on business related income including, but not limited to, the corporation business tax, New Jersey Gross Income Tax, corporate income tax, insurance premiums tax, petroleum products gross receipts tax, public utilities franchise tax, public utilities gross receipts tax, public utility excise tax, railroad franchise tax, and the saving institution tax.

(e) The tax credit shall be awarded only for assistance provided within the same tax year as that in which the Commissioner issued the certificate, or if the Commissioner approved assistance for more than one year, within each following tax year in which payment was made as set forth in the schedule that shall be attached to the certificate issued by the Commissioner. This provision may be waived for good cause shown.

(f) Assistance may be approved for the current tax year and up to four additional years in the future.

(g) The Department will grant priority in awarding tax credits to business entities that identify a nonprofit organization partner that has an approved project in its application for tax credits, followed by the remaining prioritizations listed in and pursuant to P.L. 2001, c. 415 (52:27D-496) . An approved project will consist of a project application submitted by a nonprofit organization to the Department, as part of an application cycle, which is reviewed and determined to be qualified for funding. The Department will publicize on the Departments website, a list of approved projects for business entities to consider when applying for tax credits.

(h) Failure by the business entity to provide assistance as set forth above in this section shall lead to revocation of the certificate by the Commissioner.

N.J. Admin. Code § 5:47-2.2

Amended by 46 N.J.R. 1815(b), effective 8/18/2014.