New Jersey § 34:1b-272

§ 34:1b-272.

a. (1) A business entity, upon successful application to the New Jersey Economic Development

Authority, and commitment to the authority to pay each worker employed to perform

construction work and building services work at the qualified property or transformative project a wage not less than the prevailing

wage rate for the worker's craft or trade, as determined by the Commissioner of Labor

and Workforce Development pursuant to P.L.1963, c. 150 ( C.34:11-56.25 et seq. ), shall be allowed a credit against the tax 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 C.54:18A-3 ), section 1 of P.L.1950, c. 231 ( C.17:32-15 ), or N.J.S.17B:23-5 , for a portion of the cost of rehabilitation paid by the business entity for the rehabilitation

of a qualified property or transformative project, if the cost of rehabilitation during

a business entity's selected rehabilitation period is not less than the greater of (a) the adjusted basis of the structure of the qualified property or transformative project

used for federal income tax purposes as of the beginning of the business entity's

selected rehabilitation period, or (b) $5,000. The amount of the credit claimed in any accounting or privilege period shall not

reduce the amount of the tax liability to less than the statutory minimum provided

in subsection (e) of section 5 of P.L.1945, c. 162 ( C.54:10A-5 ). (2) The amount of credit allowed to a business entity pursuant to this section shall be

as follows: (a) for the rehabilitation of a qualified property located in a qualified incentive

tract or government-restricted municipality, 45 percent of the cost of rehabilitation

paid by the business entity for the rehabilitation of the qualified property or $8

million, whichever is less; (b) for the rehabilitation of a transformative project, 45 percent of the cost of

rehabilitation paid by the business entity for the rehabilitation of the transformative

project or $50 million, whichever is less; and (c) for the rehabilitation of any other qualified property not subject to provisions

of subparagraph (a) or (b) of this paragraph, 40 percent of the cost of rehabilitation

paid by the business entity for the rehabilitation of the qualified property or $4

million, whichever is less. (3) The prevailing wage requirement for construction work shall apply at a qualified property or transformative project during the selected

rehabilitation period , and the prevailing wage requirement for building services work shall apply at a

qualified property or transformative project for 10 years following completion of

the rehabilitation work at the qualified property or transformative project . In the event a qualified property or transformative project, or the aggregate of

all qualified properties and transformative projects approved for awards under the

program, constitute a lease of more than 35 percent of a facility, the prevailing

wage requirements shall apply to the entire facility. (4) Prior to approval of an application by the authority, the authority shall confirm with the Department of Labor and Workforce Development, the Department of Environmental Protection,

and the Department of the Treasury whether the business entity is in substantial good standing with the respective department or has entered into an agreement with the respective department that includes a practical

corrective action plan for the business entity. The business entity shall certify that any contractors or subcontractors that perform

work at the qualified property or transformative project: (a) are registered as required

by “The Public Works Contractor Registration Act,” P.L.1999, c. 238 ( C.34:11-56.48 et seq. ); (b) have not been debarred by the Department of Labor and Workforce Development

from engaging in or bidding on Public Works Contracts in New Jersey; and (c) possess

a tax clearance certificate issued by the Division of Taxation in the Department of

the Treasury. The authority may also contract with an independent third party to perform a background

check on the business entity. Following approval of an application by the authority, but prior to the start of

any construction or rehabilitation at the qualified property or transformative project,

the authority shall enter into a rehabilitation agreement with the business entity. The authority shall negotiate the terms and conditions of the rehabilitation agreement

on behalf of the State. (5) A rehabilitation project shall be eligible for a tax credit only if the business

entity demonstrates to the authority at the time of application that: (a) without the tax credit, the rehabilitation project is not economically feasible;

and (b) a project financing gap exists. b. A business entity may claim a credit under this section during the accounting or

privilege period: (1) in which it makes the final payment for the cost of the rehabilitation

if the business entity has chosen a selected rehabilitation period of 24 months;

or (2) in which a distinct project phase of the rehabilitation is completed if the

business entity has chosen a selected rehabilitation period of 60 months. The credit may be claimed against any State tax, listed in paragraph (1) of subsection

a. of this section, liability otherwise due after any other credits permitted pursuant

to law have been applied. The amount of credit claimed in an accounting or privilege period that cannot be

applied for that accounting or privilege period due to limitations in this section

may be transferred pursuant to section 5 of P.L.2020, c. 156 ( C.34:1B-273 ) or carried over, if necessary, to the nine accounting or privilege periods following

the accounting or privilege period for which the credit was allowed. c. A business entity shall submit to the authority satisfactory evidence of the actual

cost of rehabilitation, as certified by a certified public accountant, evidence of

completion of the rehabilitation or phase, and a certification that all information

provided by the business entity to the authority is true, including information contained

in the application, the rehabilitation agreement, any amendment to the rehabilitation

agreement, and any other information submitted by the business entity to the authority

pursuant to sections 2 through 8 of P.L.2020, c. 156 ( C.34:1B-270 through C.34:1B-276 ). The business entity, or an authorized agent of the business entity, shall certify

under the penalty of perjury that the information provided pursuant to this subsection

is true.