New Jersey § 34:1b-339

§ 34:1b-339.

a. Beginning on the effective date of P.L.2020, c. 156 ( C.34:1B-269 et al.), 1 but prior to March 1, 2029 , to be eligible for tax credits under the program, a business's chief executive officer,

or equivalent officer, shall demonstrate to the authority at the time of application

that: (1) the business will make, acquire, or lease a capital investment at the qualified

business facility equal to or greater than the applicable amount set forth in subsection

b. of this section; (2) the business will create or retain new and retained full-time jobs in the State

in an amount equal to or greater than the applicable number set forth in subsection

c. of this section; (3) the qualified business facility is located in a qualified incentive area; (4) the award of tax credits will be a material factor in the business's decision

to create or retain the number of new and retained full-time jobs set forth in its

application; (5) the award of tax credits, the capital investment resultant from the award of tax

credits, and the resultant creation and retention of new and retained full-time jobs

will yield a net positive benefit to the State equaling at least 400 percent of the

requested tax credit allocation amount, or for a phased project the requested tax

credit allocation amount for the initial phase, and on a cumulative basis each phase

thereafter, which determination shall be calculated prior to considering the value

of the requested tax credit under the program and shall be based on the benefits generated

during the period of time from approval through the end of the commitment period,

or through the end of the longer period of extended commitment that the business may

elect for purposes of receiving credit for benefits projected to occur after the expiration

of the commitment period, except that: (a) an award of tax credits to a business for a qualified business facility located

in a distressed municipality or an enhanced area shall yield a net positive benefit

to the State, based on the benefits generated during the period of time from approval

through the end of the commitment period, that equals at least 300 percent of the

requested tax credit amount; (b) an award of tax credits to a business for a qualified business facility located

in a government-restricted municipality, or for a mega project, shall yield a net

positive benefit to the State, based on the benefits generated during the period of

time from approval through the end of the commitment period, that equals at least

200 percent of the requested tax credit amount; (c) the net economic benefits shall be evaluated on a present value basis with the

requested tax credit allocation amount discounted to present value at the same discount

rate as the benefits from capital investment resultant from the award of tax credits

and the resultant retention and creation of full-time jobs as provided in subparagraph

(d) of this paragraph; and (d) a business may elect a period of extended commitment beyond the commitment period

for which time the economic benefits shall be creditable to the determination of the

net economic benefit of the project, and a business electing a period of extended

commitment and failing to maintain the project through the expiration of that extended

commitment period shall be obligated to repay a proportion of the incremental benefits

received on account of having extended the commitment period, taking into consideration

the number of years of extended commitment during which the business maintained the

project; (e) in making the determination required pursuant to this paragraph, 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 business's

State or local tax liability, and the business's chief executive officer or equivalent

officer 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 paragraph

are true and accurate at the time of submission; (f) If, during the term of the program, the methodology used by the authority in projecting

benefits of a project in making the determination required pursuant to this paragraph

is modified, the respective percentages by which the benefits must exceed the requested

tax credit allocation amount set forth pursuant to this paragraph (5) may be adjusted

to ensure consistent application of the respective thresholds in this paragraph (5)

applied to each application; (6) the qualified business facility shall be in compliance with minimum environmental

and sustainability standards; (7) the project shall comply with the authority's affirmative action requirements,

adopted pursuant to section 4 of P.L.1979, c. 303 ( C.34:1B-5.4 ); and (8)(a) each worker employed to perform construction work or building services work

at the qualified business facility shall be paid 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. ) and P.L.2005, c. 379 ( C.34:11-56.58 et seq. ), unless: (i) the work performed under the contract is performed at a qualified business facility

owned by a landlord that is not a business receiving authority assistance; (ii) the landlord is a party to the construction contract, building services contract,

or both; and (iii) the qualified business facility constitutes a lease of less than 35 percent

of the entire facility at the time of contract and under any agreement to subsequently

lease the qualified business facility. (b) In accordance with section 1 of P.L.1979, c. 303 ( C.34:1B-5.1 ), nothing in this paragraph shall be construed as requiring the payment of prevailing

wage for construction commencing more than two years after the authority has issued

the first certificate of compliance pursuant to paragraph (2) of subsection a. of

section 77 of P.L.2020, c. 156 ( C.34:1B-345 ). b. (1) The minimum capital investment required to be eligible under the program shall

be as follows: (a) for the rehabilitation, improvement, fit-out, or retrofit of an existing industrial,

warehousing, logistics, or research and development portion of the premises for continued

similar use by the business, a minimum investment of $20 per square foot of gross

leasable area; (b) for the new construction of an industrial, warehousing, logistics, or research

and development portion of the premises for use by the business, a minimum investment

of $60 per square foot of gross leasable area; (c) for the rehabilitation, improvement, fit-out, or retrofit of existing portion

of the premises that does not qualify pursuant to subparagraph (a) or (b) of this

paragraph, a minimum investment of $40 per square foot of gross leasable area; (d) for the new construction of a portion of the premises that does not qualify pursuant

to subparagraph (a) or (b) of this paragraph, a minimum investment of $120 per square

foot of gross leasable area; and (e) for a small business, no new minimum capital investment shall be required, provided

the applicant has demonstrated evidence satisfactory to the authority of its intent

to remain in the State for the commitment period. (2) In the event the business invests less than that amount set forth in paragraph

(1) of this subsection in the qualified business facility, the business shall donate

the uninvested balance to the infrastructure fund established pursuant to section

79 of P.L.2020, c. 156 ( C.52:27D-520 ). (3) Notwithstanding the provisions of paragraphs (1) and (2) of this subsection, the

authority may adopt, pursuant to the provisions of the “Administrative Procedure Act,”

P.L.1968, c. 410 ( C.52:14B-1 et seq. ), rules and regulations adjusting the minimum capital investment amounts required

under the program when necessary to respond to the prevailing economic conditions

in the State. c. (1) The minimum number of new or retained full-time jobs required to be eligible

under the program shall be as follows: (a) for a small business, 25 percent growth of its workforce with new full-time jobs

within the eligibility period in accordance with subsection e. of section 76 of P.L.2020, c. 156 ( C.34:1B-344 ); (b) for a business engaged primarily in a targeted industry which does not qualify

as a small business, 25 new full-time jobs; (c) for any other business, a minimum of 35 new full-time jobs; (d) for a business eligible for new full-time jobs under subparagraphs (b) or (c)

of this paragraph, the business shall also be eligible for retained full-time jobs

in addition to the new full-time jobs if the business will retain 150 retained full-time

jobs when locating in a government-restricted municipality, 250 retained full-time

jobs when locating in a qualified incentive tract or enhanced area municipality, or

500 retained full-time jobs when locating anywhere else in the State; (e) for a business not eligible under subparagraphs (b), (c), or (d) of this paragraph

and locating in a qualified incentive tract, enhanced area, or government-restricted

municipality that will retain 500 or more retained full-time jobs, a minimum of the

business's retained full-time jobs at the time of application; (f) for a business not eligible under subparagraphs (b), (c), (d), or (e) of this

paragraph and located in the State that will retain 1,000 or more retained full-time

jobs, a minimum of the business's retained full-time jobs at the time of application. (2) Notwithstanding the provisions of paragraph (1) of this subsection, the authority

may adopt, pursuant to the provisions of the “Administrative Procedure Act,” P.L.1968,

c. 410 ( C.52:14B-1 et seq. ), rules and regulations adjusting the minimum number of new or retained full-time

jobs required under the program when necessary to respond to the prevailing economic

conditions in the State. d. A business that provides and adheres to a plan that demonstrates that the qualified

business facility is capable of accommodating more than half of the business's new

and retained full-time employees as approved and that certifies, under the penalty

of perjury, that not less than 80 percent of the withholdings of new and retained

full-time jobs are subject to the “New Jersey Gross Income Tax Act,” N.J.S.54A:1-1 et seq. shall be eligible. The requirements set forth in this subsection may be modified by the authority to

respond to an emergency, disaster, or other factors that result in employees of an

eligible business having to work from a location other than the qualified business

facility. e. The chief executive officer of the business, or an equivalent officer, shall certify

that all factual representations made by the business to the authority pursuant to

subsection a. of this section are true under the penalty of perjury. f. A business eligible pursuant to this section may submit an application to the authority

in accordance with the provisions of section 72 of P.L.2020, c. 156 ( C.34:1B-340 ) on or after the effective date of P.L.2020, c. 156 ( C.34:1B-269 et al.) but prior to March 1, 2029 . 1

L.2020, c. 156, eff. Jan. 7, 2021.