New Jersey § 34:1b-326

§ 34:1b-326.

a. Prior to March 1, 2029 , for redevelopment projects eligible pursuant to section 57 of P.L.2020, c. 156 ( C.34:1B-325 ) for which a developer is seeking an incentive award for the redevelopment project,

the developer shall submit an application to the authority and, in the case of a residential

project, shall submit an application to the authority and the agency, in a form and

manner prescribed in regulations adopted by the authority pursuant to section 67 of P.L.2020, c. 156 ( C.34:1B-335 ) . The authority shall accept applications for incentive awards during the grant periods

established pursuant to section 59 of P.L.2020, c. 156 ( C.34:1B-327 ). b. The authority shall not consider an application for a commercial project unless

the developer submits a letter evidencing support for the commercial project from

the governing body of the municipality in which the commercial project is located

with the application. c. The authority shall review the project cost, evaluate and validate the project

financing gap estimated by the developer, and conduct a State fiscal impact analysis

to ensure that the overall public assistance provided to the project will result in

a net positive benefit to the State, provided that the net benefit analysis shall

not apply to capital investment for a food delivery source; a health care or health

services center ; or a residential project. In determining whether a project will result in a net positive benefit to the State,

the authority shall not consider the value of any taxes exempted, abated, rebated,

or retained under the “Five-Year Exemption and Abatement Law,” P.L.1991, c. 441 ( C.40A:21-1 et seq. ), the “Long Term Tax Exemption Law,” P.L.1991, c. 431 ( C.40A:20-1 et al.), the “New Jersey Urban Enterprise Zones Act,” P.L.1983, c. 303 ( C.52:27H-60 et seq. ), or any other law that has the effect of lowering or eliminating the developer's

State or local tax liability. The determination made pursuant to this subsection shall be based on the potential

tax liability of the developer without regard for potential tax losses if the developer

were to locate in another state. The authority shall assess the cost of these reviews to the applicant. A developer shall pay to the authority the full amount of the direct costs of an analysis

concerning the developer's application for a tax credit that a third party retained

by the authority performs, if the authority deems such retention to be necessary.

The authority shall evaluate the net economic benefits on a present value basis under

which the requested tax credit allocation amount is discounted to present value at

the same discount rate as the projected benefits from the implementation of the proposed

redevelopment project for which an award of tax credits is being sought. d. (1) For a redevelopment project subject to the requirement of subsection c. of this section

to be eligible for any tax credits under the program, a developer shall demonstrate

to the authority that the award of tax credits will yield a net positive benefit to

the State equaling an amount determined by the authority through regulation that exceeds

the requested tax credit amount. The developer shall certify, under the penalty of perjury, that all documents submitted,

and factual assertions made, to the authority to demonstrate that the award of tax

credits will yield a net positive benefit to the State in accordance with this subsection

are true and accurate at the time of submission. (2) A redevelopment project located in a government-restricted municipality shall yield

a net positive benefit to the State that exceeds the requested tax credit amount,

but the net benefit requirement set by the authority for such redevelopment projects

may be up to 35 percentage points lower than the net benefit requirement set by the

authority for all other eligible redevelopment projects. (3) A commercial project that contains 50,000 or more square feet of space devoted

to research or technology focused incubator and conferencing facilities for one or

more institutions of higher education or non-profit organizations, and which has a

total project cost of not less than $50 million, shall yield a net positive benefit

to the State that exceeds the requested tax credit amount, but the net benefit requirement

set by the authority for such redevelopment projects may be up to 35 percentage points

lower than the net benefit requirement set by the authority for all other eligible

redevelopment projects. (4) A redevelopment project that is predominantly commercial and that receives a federal

historic rehabilitation tax credit pursuant to section 47 of the federal Internal Revenue Code of 1986 , 26 U.S.C. s.47 , or a tax credit pursuant to the “Historic Property Reinvestment Act,” sections 2

through 8 of P.L.2020, c. 156 ( C.34:1B-270 through C.34:1B-276 ), shall yield a net positive benefit to the State that exceeds the requested tax

credit amount, but the net benefit requirement set by the authority for such redevelopment

projects may be up to 35 percentage points lower than the net benefit requirement

set by the authority for all other eligible redevelopment projects. (5) A commercial project that is located on land owned by the federal government on

or before December 31, 2005 shall yield a net positive benefit to the State that exceeds

the requested tax credit amount, but the net benefit requirement set by the authority

for such redevelopment projects may be up to 35 percentage points lower than the net

benefit requirement set by the authority for all other eligible redevelopment projects. (6) A redevelopment project that is undertaken by a major cultural institution to

renovate existing space or expand services into additional space, and in which the

major cultural institution realizes all returns from the redevelopment project, shall

yield a net positive benefit to the State that exceeds the requested tax credit amount,

but the net benefit requirement set by the authority for such redevelopment projects

may be lower than the net benefit requirement set by the authority for all other eligible

redevelopment projects. e. If at any time during the eligibility period the authority determines that the

developer made a material misrepresentation on the developer's application, the developer

shall forfeit the incentive award. f. If circumstances require a developer to amend its application to the authority,

then the developer, or an authorized agent of the developer, shall certify to the

authority that the information provided in its amended application is true under the

penalty of perjury.