New Jersey § 34:1b-129

§ 34:1b-129.

a. The amount of the employment incentive awarded as a grant by the authority shall

either be awarded in cash or as a tax credit. In each case, the amount of the grant shall be not less than 10 percent and not more

than 50 percent of the withholdings of the business, or not less than 10 percent and

not more than 30 percent of the estimated tax of the partners of an eligible partnership

whether paid directly by the partner or by the eligible partnership on behalf of the

partner's account, or any combination thereof, and shall be subject to the provisions

of sections 10 and 11 of P.L.1996, c. 26 ( C.34:1B-133 and C.34:1B-134 ). In no case shall the aggregate amount of the employment incentive grant awarded

pursuant to a business employment incentive agreement entered into on or after July

1, 2003 exceed an average of $50,000 for all new employees over the term of the grant. The employment incentive shall be based on criteria developed by the authority after

considering the following: (1) The number of eligible positions to be created; (2) The expected duration of those positions; (3) The type of contribution the business can make to the long-term growth of the

State's economy; (4) The amount of other financial assistance the business will receive from the State

for the project; (5) The total dollar investment the business is making in the project; (6) Whether the business is a designated industry; (7) Impact of the business on State tax revenues; and (8) Such other related factors determined by the authority. b. A business may be eligible to be awarded a grant, either in cash or in tax credits,

of up to 80 percent of the withholdings of the business or up to 50 percent of the

estimated tax of the partners of an eligible partnership if the grant promotes smart

growth and the goals, strategies, and policies of the State Development and Redevelopment

Plan, established pursuant to section 5 of P.L.1985, c. 398 ( C.52:18A-200 ), as determined by and based upon criteria promulgated by the authority following

consultation with the Office of State Planning in the Department of State. c. The term of the grant shall not exceed 10 years. d. At the discretion of the authority, the grant may apply to new employees or partners

in eligible positions created during the base years, and during the remainder of the

term of the grant. e. Within 180 days of the date of enactment of P.L.2015, c. 194 ( C.34:1B-137.1 et al.), a business that was approved for a grant prior to the enactment of P.L.2015, c. 194 ( C.34:1B-137.1 et al.), may direct the authority to convert the grant to a tax credit against the

tax liability otherwise due pursuant to section 5 of P.L.1945, c. 162 ( C.54:10A-5 ), sections 2 and 3 of P.L.1945, c. 132 ( C.54:18A-2 and 54:18A-3 ), section 1 of P.L.1950, c. 231 ( C.17:32-15 ), or N.J.S.17B:23-5 . The direction to convert the grant to a tax credit shall be irrevocable. An approved tax credit shall be issued in the manner and for the amounts as follows

and may only be applied in the tax period for which they are issued and shall not

be carried forward: (1) For grants accrued but not paid during calendar years 2008 through 2013, the tax

credit shall be equal to an approved amount and shall be issued in five installments

over a five-year period beginning in the 2017 tax accounting or privilege period of

the business or tax credit transferee in the following percentages: in year one,

five percent of the accrued amount; in year two, 20 percent of the accrued amount;

in year three, 25 percent of the accrued amount; in year four, 25 percent of the

accrued amount; in year five, 25 percent of the accrued amount. To the extent any amount in this paragraph has not been approved by the authority

by the commencement of State fiscal year 2017, the aggregate tax credit that would

have been issued in State fiscal year 2017 shall be issued in the year the amount

is approved and the five-year period shall commence in that fiscal year; (2) For a grant accrued but not paid during calendar year 2014, the tax credit shall

be equal to any approved amount and shall be issued in four equal installments over

a four-year period beginning in the 2019 tax accounting or privilege period of the

business or tax credit transferee; (3) For a grant accrued but not paid during calendar year 2015, the tax credit shall

be equal to any approved amount and shall be issued in four equal installments over

a four-year period beginning in the 2019 tax accounting or privilege period of the

business or tax credit transferee; (4) For a grant accrued but not paid during calendar year 2016, the tax credit shall

be equal to any approved amount and shall be issued in three equal installments over

a three-year period beginning in the 2020 tax accounting or privilege period of the

business or tax credit transferee; (5) For a grant accrued but not paid during calendar year 2017, the tax credit shall

be equal to any approved amount and shall be issued in three equal installments over

a three-year period beginning in the 2020 tax accounting or privilege period of the

business or tax credit transferee; (6) For a grant accrued but not paid during calendar year 2018, the tax credit shall

be equal to any approved amount and shall be issued in two equal installments over

a two-year period beginning in the 2022 tax accounting or privilege period of the

business or tax credit transferee; (7) For a grant accrued but not paid during calendar year 2019, the tax credit shall

be equal to any approved amount and shall be issued in two equal installments over

a two-year period beginning in the 2022 tax accounting or privilege period of the

business or tax credit transferee; (8) For a grant accrued but not paid during calendar year 2020, the tax credit shall

be equal to any approved amount and shall be issued in two equal installments over

a two-year period beginning in the 2023 tax accounting or privilege period of the

business or tax credit transferee; (9) For a grant accrued but not paid during calendar year 2021, the tax credit shall

be equal to any approved amount and shall be issued in two equal installments over

a two-year period beginning in the 2023 tax accounting or privilege period of the

business or tax credit transferee; (10) For a grant accrued but not paid during calendar year 2022, the tax credit shall

be equal to any approved amount and shall be paid in two equal installments over a

two-year period beginning in the 2023 tax accounting or privilege period of the business

or tax credit transferee; (11) For a grant accrued but not paid during calendar year 2023, the tax credit shall

be equal to any approved amount and shall be issued in two equal installments over

a two-year period beginning in the 2023 tax accounting or privilege period of the

business or tax credit transferee; (12) For a grant accrued but not paid during calendar year 2024, the tax credit shall

be equal to any approved amount and shall be issued in the 2025 tax accounting or

privilege period of the business or tax credit transferee; and (13) For a grant accrued but not paid during calendar year 2025, the tax credit shall

be equal to any approved amount and shall be issued in the 2025 tax accounting or

privilege period of the business or tax credit transferee. f. The amount of the credit allowed pursuant to this section shall be applied against

the tax otherwise due under section 5 of P.L.1945, c. 162 ( C.54:10A-5 ), sections 2 and 3 of P.L.1945, c. 132 ( C.54:18A-2 and C.54:18A-3 ), section 1 of P.L.1950, c. 231 ( C.17:32-15 ), or N.J.S.17B:23-5 , prior to all other credits and payments. If the credit exceeds the amount of tax liability otherwise due from a business

that pays taxes under section 5 of P.L.1945, c. 162 ( C.54:10A-5 ), sections 2 and 3 of P.L.1945, c. 132 ( C.54:18A-2 and C.54:18A-3 ), section 1 of P.L.1950, c. 231 ( C.17:32-15 ), or N.J.S.17B:23-5 , that amount of excess shall be an overpayment for the purposes of R.S.54:49-15 , provided, however, that section 7 of P.L.1992, c. 175 ( C.54:49-15.1 ) shall not apply. g. (1) A business that does not pay taxes under section 5 of P.L.1945, c. 162 ( C.54:10A-5 ), sections 2 and 3 of P.L.1945, c. 132 ( C.54:18A-2 and 54:18A-3 ), section 1 of P.L.1950, c. 231 ( C.17:32-15 ), or N.J.S.17B:23-5 may apply to the executive director of the authority for a tax credit transfer certificate,

covering one or more years. (2) A business that has received a tax credit pursuant to subsection e. of this section,

which credit exceeds the amount of the tax liability otherwise due, may apply to the

executive director of the authority for a tax credit transfer certificate, covering

one or more years. (3) Upon the executive director's approval of an application for a tax credit transfer

certificate, the division shall review and issue the tax credit transfer certificate. The tax credit transfer certificate, upon receipt thereof by the business, may be

sold or assigned, in full or in part, in an amount not less than $100,000, or the

amount of the refundable tax credit issued if less than $100,000, of tax credits to

any other person that may have a tax liability pursuant to section 5 of P.L.1945,

c. 162 ( C.54:10A-5 ), sections 2 and 3 of P.L.1945, c. 132 ( C.54:18A-2 and 54:18A-3 ), section 1 of P.L.1950, c. 231 ( C.17:32-15 ), or N.J.S.17B:23-5 . The tax credit transfer certificate provided to the business shall include a statement

waiving the business's right to claim that amount of the credit against the taxes

that the business has elected to sell or assign. The sale or assignment of any amount of a tax credit transfer certificate allowed

under this section shall not be exchanged for consideration received by the business

of less than 75 percent of the transferred credit amount before considering any further

discounting to present value which shall be permitted. Any amount of a tax credit transfer certificate used by a purchaser or assignee

against a tax liability shall be subject to the same privileges, limitations, and

conditions that apply to the use of the credit by the business that originally applied

for and was allowed the tax credit, including treating the amount of excess as an

overpayment under subsection f. of this section. The tax credit transferee may not transfer its tax credit to any other party. h. Following the termination of the public health emergency declared by the Governor

pursuant to Executive Order No. 103 of 2020, as extended, a business that has entered

into an incentive agreement may elect, before March 31, 2024 , to waive, for the period beginning on July 1, 2022 and ending on March 31, 2024 , the requirement that a full-time employee who is employed by the business shall

spend at least 60 percent of the employee's time at the qualified business facility;

provided, however, that a business that makes such an election shall satisfy the following

criteria: (1) any full-time employee employed by the business shall spend at least 10 percent

of the employee's time at the qualified business facility for the 2023 tax period through March 31, 2024 ; and (2) following the receipt by the business of its tax credit certificate or tax credit

transfer certificate for the 2022 tax period, the business shall make a payment of

an amount equal to five percent of the amount of tax credit the business receives

for the 2022 tax period through March 31, 2024 , which payment shall be made to the authority, and which payment the authority shall

hold and make available for the provision of loans, guarantees, equity investments,

and grants, or other forms of financing to support small business and downtown or

commercial corridor activation activities within the municipality in which the qualified

business facility is located, as may be designated by the chief executive officer

of the authority.