New Jersey § 34:1b-209

§ 34:1b-209.

a. (1) A business, upon application to and approval from the authority, shall be allowed

a credit of 100 percent of its capital investment, made after the effective date of P.L.2007, c. 346 ( C.34:1B-207 et seq. ) but prior to its submission of documentation pursuant to subsection c. of this section,

in a qualified business facility within an eligible municipality, pursuant to the

restrictions and requirements of this section. To be eligible for any tax credits authorized under this section, a business shall

demonstrate to the authority, at the time of application, that the State's financial

support of the proposed capital investment in a qualified business facility will yield

a net positive benefit to both the State and the eligible municipality. The value of all credits approved by the authority pursuant to P.L.2007, c. 346 ( C.34:1B-207 et seq. ) shall not exceed $1,750,000,000, except as may be increased by the authority as

set forth in paragraph (5) of subsection a. of section 35 of P.L.2009, c. 90 ( C.34:1B-209.3 ) and section 6 of P.L.2010, c. 57 ( C.34:1B-209.4 ). (2) A business, other than a tenant eligible pursuant to paragraph (3) of this subsection,

shall make or acquire capital investments totaling not less than $50,000,000 in a

qualified business facility, at which the business shall employ not fewer than 250

full-time employees to be eligible for a credit under this section. A business that acquires a qualified business facility shall also be deemed to have

acquired the capital investment made or acquired by the seller. (3) A business that is a tenant in a qualified business facility, the owner of which

has made or acquired capital investments in the facility totaling not less than $50,000,000,

shall occupy a leased area of the qualified business facility that represents at least

$17,500,000 of the capital investment in the facility at which the tenant business

and up to two other tenants in the qualified business facility shall employ not fewer

than 250 full-time employees in the aggregate to be eligible for a credit under this

section. The amount of capital investment in a facility that a leased area represents shall

be equal to that percentage of the owner's total capital investment in the facility

that the percentage of net leasable area leased by the tenant is of the total net

leasable area of the qualified business facility. Capital investments made by a tenant shall be deemed to be included in the calculation

of the capital investment made or acquired by the owner, but only to the extent necessary

to meet the owner's minimum capital investment of $50,000,000. Capital investments made by a tenant and not allocated to meet the owner's minimum

capital investment threshold of $50,000,000 shall be added to the amount of capital

investment represented by the tenant's leased area in the qualified business facility. (4) A business shall not be allowed tax credits under this section if the business

participates in a business employment incentive agreement, pursuant to P.L.1996, c. 26 ( C.34:1B-124 et seq. ), relating to the same capital and employees that qualify the business for this credit,

or if the business receives assistance pursuant to P.L.1996, c. 25 ( C.34:1B-112 et seq. ). A business that is allowed a tax credit under this section shall not be eligible

for incentives authorized pursuant to P.L.2002, c. 43 ( C.52:27BBB-1 et al.). A business shall not qualify for a tax credit under this section, based upon its

capital investment and the employment of full-time employees, if that capital investment

or employment was the basis for which a grant was provided to the business pursuant

to the “InvestNJ Business Grant Program Act,” P.L.2008, c. 112 ( C.34:1B-237 et seq. ). (5) Full-time employment for an accounting or a privilege period shall be determined

as the average of the monthly full-time employment for the period. (6) The capital investment of the owner of a qualified business facility is that percentage

of the capital investment made or acquired by the owner of the building that the percentage

of net leasable area of the qualified business facility not leased to tenants is of

the total net leasable area of the qualified business facility. (7) A business shall be allowed a tax credit of 100 percent of its capital investment,

made after the effective date of P.L.2011, c. 89 but prior to its submission of documentation pursuant to subsection c. of this section,

in a qualified business facility that is part of a mixed use project, provided that

(a) the qualified business facility represents at least $17,500,000 of the total capital

investment in the mixed use project, (b) the business employs not fewer than 250 full-time

employees in the qualified business facility, and (c) the total capital investment

in the mixed use project of which the qualified business facility is a part is not

less than $50,000,000. The allowance of credits under this paragraph shall be subject to the restrictions

and requirements, to the extent that those are not inconsistent with the provisions

of this paragraph, set forth in paragraphs (1) through (6) of this subsection, including,

but not limited to, the requirement that the business shall demonstrate to the authority,

at the time of application, that the State's financial support of the proposed capital

investment in a qualified business facility will yield a net positive benefit to both

the State and the eligible municipality. (8) In determining whether a proposed capital investment will yield a net positive

benefit, the authority shall not consider the transfer of an existing job from one

location in the State to another location in the State as the creation of a new job,

unless (a) the business proposes to transfer existing jobs to a municipality in the

State as part of a consolidation of business operations from two or more other locations

that are not in the same municipality whether in-State or out-of-State, or (b) the

business's chief executive officer, or equivalent officer, submits a certification

to the authority indicating that the existing jobs are at risk of leaving the State

and that the business's chief executive officer, or equivalent officer, has reviewed

the information submitted to the authority and that the representations contained

therein are accurate, and the business intends to employ not fewer than 500 full-time

employees in the qualified business facility. In the event that this certification by the business's chief executive officer,

or equivalent officer, is found to be willfully false, the authority may revoke any

award of tax credits in their entirety, which revocation shall be in addition to any

other criminal or civil penalties that the business and the officer may be subject

to. When considering an application involving intra-State job transfers, the authority

shall require the company to submit the following information as part of its application:

a full economic analysis of all locations under consideration by the company; all

lease agreements, ownership documents, or substantially similar documentation for

the business's current in-State locations; and all lease agreements, ownership documents,

or substantially similar documentation for the potential out-of-State location alternatives,

to the extent they exist. Based on this information, and any other information deemed relevant by the authority,

the authority shall independently verify and confirm, by way of making a factual finding

by separate vote of the authority's board, the business's assertion that the jobs

are actually at risk of leaving the State, before a business may be awarded any tax

credits under this section. b. (1) If applications under this section have been received by the authority prior

to the effective date of the “New Jersey Economic Opportunity Act of 2013,” P.L.2013, c. 161 ( C.52:27D-489p et al.), then, to the extent that there remains sufficient financial authorization

for the award of a tax credit, the authority is authorized to consider those applications

and to make awards of tax credits to eligible applicants, provided that the authority

shall take final action on those applications no later than December 31, 2013. (2) A business shall apply for the credit under this section prior to the effective

date of the “New Jersey Economic Opportunity Act of 2013,” P.L.2013, c. 161 ( C.52:27D-489p et al.), and shall submit its documentation for approval of its credit amount no

later than December 31, 2023. (3) If a business has submitted an application under this section and that application

has not been approved for any reason, the lack of approval shall not serve to prejudice

in any way the consideration of a new application as may be submitted for the qualified

business facility for the provision of incentives offered pursuant to the “New Jersey

Economic Opportunity Act of 2013,” P.L.2013, c. 161 ( C.52:27D-489p et al.). (4) Tax credits awarded pursuant to P.L.2007, c. 346 ( C.34:1B-207 et seq. ) for applications submitted to and approved by the authority prior to the effective

date of the “New Jersey Economic Opportunity Act of 2013,” P.L.2013, c. 161 ( C.52:27D-489p et al.), shall be administered by the authority in the manner established prior to

that date. (5) With respect to an application received by the authority prior to the effective

date of the “New Jersey Economic Opportunity Act of 2013,” P.L.2013, c. 161 ( C.52:27D-489p et al.) for a qualified business facility that is located on or adjacent to the campus

of an acute care medical facility, (a) the minimum number of full-time employees required

for eligibility under the program may be employed by any number of tenants or other

occupants of the facility, in the aggregate, and the initial satisfaction of the requirement

following completion of the project shall be deemed to satisfy the employment requirements

of the program in all respects, and (b) if the capital investment in the facility

exceeds $100,000,000, the determination of the net positive benefit yield shall be

based on the benefits generated during a period of up to 30 years following the completion

of the project, as determined by the authority. c. (1) The amount of credit allowed shall, except as otherwise provided, be equal

to the capital investment made by the business, or the capital investment represented

by the business's leased area, or area owned by the business as a condominium, and

shall be taken over a 10-year period, at the rate of one-tenth of the total amount

of the business's credit for each tax accounting or privilege period of the business,

beginning with the tax period in which the business is first certified by the authority

as having met the investment capital and employment qualifications, subject to any

reduction or disqualification as provided by subsection d. of this section as determined

by annual review by the authority. In conducting its annual review, the authority may require a business to submit

any information determined by the authority to be necessary and relevant to its review. The credit amount that may be taken for a tax period of the business that exceeds

the final liabilities of the business for the tax period may be carried forward for

use by the business in the next 20 successive tax periods, and shall expire thereafter,

provided that the value of all credits approved by the authority against tax liabilities

pursuant to P.L.2007, c. 346 ( C.34:1B-207 et seq. ) in any fiscal year shall not exceed $260,000,000. The amount of credit allowed for a tax period to a business that is a tenant in a

qualified business facility shall not exceed the business's total lease payments for

occupancy of the qualified business facility for the tax period. A business may elect to suspend its obligations for the 2020, 2021, 2022, or 2023

tax period, or any combination thereof, due to the COVID-19 pandemic, provided that

the business shall make such election in writing to the authority before the issuance

of the tax credit for the corresponding tax year and such suspension shall extend

the term of the eligibility period by a corresponding amount of time. The authority shall modify the approval letter, and the business shall execute the

modification within the time period provided by the authority. The modification shall provide that the failure to submit the annual report due

to the suspension shall not be a forfeiture or an uncertified tax period. (2) A business that is a partnership shall not be allowed a credit under this section

directly, but the amount of credit of an owner of a business shall be determined by

allocating to each owner of the partnership that proportion of the credit of the business

that is equal to the owner of the partnership's share, whether or not distributed,

of the total distributive income or gain of the partnership for its tax period ending

within or at the end of the owner's tax period, or that proportion that is allocated

by an agreement, if any, among the owners of the partnership that has been provided

to the Director of the Division of Taxation in the Department of the Treasury by the

time and accompanied by the additional information as the director may require. (3) The amount of credit allowed may be applied against the tax liability otherwise

due pursuant to section 5 of P.L.1945, c. 162 ( C.54:10A-5 ), pursuant to sections 2 and 3 of P.L.1945, c. 132 ( C.54:18A-2 and C.54:18A-3 ), pursuant to section 1 of P.L.1950, c. 231 ( C.17:32-15 ), or pursuant to N.J.S.17B:23-5 . d. (1) If, in any tax period, fewer than 200 full-time employees of the business at

the qualified business facility are employed in new full-time positions, the amount

of the credit otherwise determined pursuant to final calculation of the award of tax

credits pursuant to subsection c. of this section shall be reduced by 20 percent for

that tax period and each subsequent tax period until the first period for which documentation

demonstrating the restoration of the 200 full-time employees employed in new full-time

positions at the qualified business facility has been reviewed and approved by the

authority, for which tax period and each subsequent tax period the full amount of

the credit shall be allowed; provided, however, that for businesses applying before

January 1, 2010, there shall be no reduction if a business relocates to an urban transit

hub from another location or other locations in the same municipality. For the purposes of this paragraph, a “ new full-time position ” means a position created by the business at the qualified business facility that

did not previously exist in this State. (2) If, in any tax period, the business reduces the total number of full-time employees

in its Statewide workforce by more than 20 percent from the number of full-time employees

in its Statewide workforce in the last tax accounting or privilege period prior to

the credit amount approval under subsection a. of this section, then the business

shall forfeit its credit amount for that tax period and each subsequent tax period,

until the first tax period for which documentation demonstrating the restoration of

the business's Statewide workforce to the threshold levels required by this paragraph

has been reviewed and approved by the authority, for which tax period and each subsequent

tax period the full amount of the credit shall be allowed. (3) If, in any tax period, (a) the number of full-time employees employed by the business

at the qualified business facility located in an urban transit hub within an eligible

municipality drops below 250, or (b) the number of full-time employees, who are not

the subject of intra-State job transfers, pursuant to paragraph (8) of subsection

a. of this section, employed by the business at any other business facility in the

State, whether or not located in an urban transit hub within an eligible municipality,

drops by more than 20 percent from the number of full-time employees in its workforce

in the last tax accounting or privilege period prior to the credit amount approval

under this section, then the business shall forfeit its credit amount for that tax

period and each subsequent tax period, until the first tax period for which documentation

demonstrating the restoration of the number of full-time employees employed by the

business at the qualified business facility to 250 or an increase above the 20 percent

reduction has been reviewed and approved by the authority, for which tax period and

each subsequent tax period the full amount of the credit shall be allowed. (4) (i) If the qualified business facility is sold in whole or in part during the

10-year eligibility period, the new owner shall not acquire the capital investment

of the seller and the seller shall forfeit all credits for the tax period in which

the sale occurs and all subsequent tax periods; provided, however, that any credits

of tenants shall remain unaffected. (ii) If a tenant subleases its tenancy in whole or in part during the 10-year eligibility

period, the new tenant shall not acquire the credit of the sublessor, and the sublessor

tenant shall forfeit all credits for the tax period of its sublease and all subsequent

tax periods. (5) 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: (i) 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 (ii) 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. e. (1) The Executive Director of the New Jersey Economic Development Authority, in

consultation with the Director of the Division of Taxation in the Department of the

Treasury, shall adopt rules in accordance with the “Administrative Procedure Act,”

P.L.1968, c. 410 ( C.52:14B-1 et seq. ) as are necessary to implement P.L.2007, c. 346 ( C.34:1B-207 et seq. ), including, but not limited to: examples of and the determination of capital investment;

the enumeration of eligible municipalities; specific delineation of urban transit

hubs; the determination of the limits, if any, on the expense or type of furnishings

that may constitute capital improvements; the promulgation of procedures and forms

necessary to apply for a credit, including the enumeration of the certification procedures

and allocation of tax credits for different phases of a qualified business facility

or mixed use project; and provisions for credit applicants to be charged an initial

application fee, and ongoing service fees, to cover the administrative costs related

to the credit. (2) Through regulation, the authority shall establish standards based on the green

building manual prepared by the Commissioner of Community Affairs, pursuant to section

1 of P.L.2007, c. 132 ( C.52:27D-130.6 ), regarding the use of renewable energy, energy-efficient technology, and non-renewable

resources in order to reduce environmental degradation and encourage long-term cost

reduction. f. A business that has executed an approval letter may request before December 31,

2023 to terminate the award, commencing with the 2020 tax period or any subsequent

tax period ending on or before December 31, 2023, due to the COVID-19 public health

emergency; provided that the business shall submit a certification from the business's

chief executive officer or equivalent officer stating that the termination is due,

directly or indirectly, to the public health emergency and describing the impact of

the public health emergency on the business. All credits for the tax period in which the termination is requested and all subsequent

tax periods shall be forfeited, provided however that any credits of the business

shall remain unaffected. A termination agreement executed by the authority and business shall not be amended.