New Jersey § 34:1b-385

§ 34:1b-385.

As used in P.L.2023, c. 197 ( C.34:1B-383 et al.): “ Affiliate ” means an entity that directly or indirectly controls, is under common control with,

or is controlled by a cultural arts institution. Control exists in all cases in which the entity is a member of a controlled group

of corporations as defined pursuant to section 1563 of the federal Internal Revenue Code ( 26 U.S.C. s.1563 ) or the entity is an organization in a group of organizations under common control

that is subject to the regulations applicable to organizations pursuant to subsection (b) or (c) of section 414 of the federal Internal Revenue Code ( 26 U.S.C. s.414 ). A cultural arts institution may establish by clear and convincing evidence, as determined

by the authority, that control exists in situations involving lesser percentages of

ownership if the cultural arts institution shall have control, at a minimum, of all

aspects of compliance with this program. An affiliate of a cultural arts institution may contribute to the project cost and

may satisfy the requirement for site control during construction and the eligibility

period, but in no event shall the tax credit certificate be issued to any affiliate. “ Authority ” means the New Jersey Economic Development Authority established by section 4 of

P.L.1974, c. 80 ( C.34:1B-4 ). “ Board ” means the board of the New Jersey Economic Development Authority, established by

section 4 of P.L.1974, c. 80 ( C.34:1B-4 ). “ Cultural arts institution ” means a governmental entity or nonprofit or governmental economic or community development

entity incorporated pursuant to Title 15 of the Revised Statutes or Title 15A of the

New Jersey Statutes, operating on a not-for-profit basis, and having the primary mission

and specific policy goal of cultural, educational, or artistic enrichment of the people

of this State. A “cultural arts institution” shall include a for-profit business seeking a tax credit

for a cultural arts institution facility open to the public provided that the cultural

arts institution facility is receiving 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 ). “ Cultural arts institution facility ” means an existing or proposed facility within this State, operated and maintained

by a cultural arts institution. A “cultural arts institution facility” includes, without limitation, an aquarium,

botanical society, historical society, library, museum, gallery, performing arts center,

or any related facility that is principally for the support and benefit of any of

the foregoing. “ Cultural arts project ” means a capital project for the construction or improvement of a cultural arts institution

facility that is located in the State for which a cultural arts institution is to

be awarded tax credits by the authority under the program pursuant to a tax credit

agreement, provided that the project for which the tax credits are awarded will result

in a capital investment of at least $5,000,000. “ Director ” means the Director of the Division of Taxation in the Department of the Treasury. “ Eligibility period ” means the period during which a cultural arts institution may claim, sell, transfer,

or otherwise use a tax credit under the program, beginning with the tax period in

which the authority accepts certification of the cultural arts institution that it

has met the capital investment requirements of the program and extending thereafter

for a term of at least five years. “ Eligible position ” means a full-time position in an entity in this State which the entity has filled

with a full-time employee. An eligible position shall not include an independent contractor or a consultant. “ Government-restricted municipality ” means a municipality in this State with a municipal revitalization index distress

score of at least 75, that met the criteria for designation as an urban aid municipality

in the 2019 State fiscal year, and that, on the effective date of P.L.2020, c. 156, is subject to financial restrictions imposed pursuant to the “Municipal Stabilization

and Recovery Act,” P.L.2016, c. 4 ( C.52:27BBBB-1 et seq. ), or is restricted in its ability to levy property taxes on property in that municipality

as a result of the State of New Jersey owning or controlling property representing

at least 25 percent of the total land area of the municipality or as a result of the

federal government of the United States owning or controlling at least 50 acres of

the total land area of the municipality, which is dedicated as a national natural

landmark. “ New full-time job ” means an eligible position created by a cultural arts institution at a cultural

arts project that did not previously exist in this State. For the purposes of determining the number of new full-time jobs, the eligible positions

of an affiliate shall be considered eligible positions of the cultural arts institution. “ Operating reserve ” means an unrestricted fund balance set aside to stabilize a nonprofit's finances

to mitigate against unexpected events, losses of income, and large unbudgeted expenses. “ Program ” means the Cultural Arts Incentives Program established pursuant to section 4 of P.L.2023, c. 197 ( C.34:1B-386 ). “ Project cost ” means the costs incurred in connection with a cultural arts project by a cultural

arts institution until the issuance of a permanent certificate of occupancy, or until

such other time specified by the authority, for a specific investment or improvement,

including the costs relating to lands, buildings, improvements, real or personal property,

or any interest therein, including leases discounted to present value, including lands

under water, riparian rights, space rights, and air rights acquired, owned, developed

or redeveloped, constructed, reconstructed, rehabilitated, or improved, any environmental

remediation costs, plus costs not directly related to construction, including capitalized

interest paid to third parties, of an amount not to exceed 20 percent of the total

costs, and the cost of infrastructure improvements, including ancillary infrastructure

projects. The fees associated with the application or administration of tax credits under P.L.2023, c. 197 ( C.34:1B-383 et al.) shall not constitute a project cost. “ Project financing gap ” means the part of the total project cost, including reasonable and appropriate return

on investment, that remains to be financed after all other sources of capital have

been accounted for, including, but not limited to capital contributed by the cultural

arts institution, which shall not be less than 20 percent of the total project cost,

and investor or financial entity capital or loans; provided, however, that for a cultural

arts project located in a government-restricted municipality, the capital contributed

by the cultural arts institution shall not be less than 10 percent of the total project

cost. “ Qualified incentive tract ” means a. a population census tract having a poverty rate of 20 percent or more;

or b. a census tract in which the median family income for the census tract does not

exceed 80 percent of the greater of the statewide median family income or the median

family income of the metropolitan statistical area in which the census tract is situated. “ Tax credit agreement ” means a tax credit agreement entered into pursuant to section 8 of P.L.2023, c. 197 ( C.34:1B-390 ) between the authority and a cultural arts institution. “ Work First New Jersey program ” means the Work First New Jersey program established pursuant to P.L.1997, c. 38 ( C.44:10-55 et seq. ).