§ 34:1B-399 — Eligible business, tax credits, site plan approval, committed financing, control, facility.

New Jersey § 34:1B-399

• Jurisdiction: New Jersey
• Title 34: LABOR AND WORKMEN'S COMPENSATION

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6. a. Following board approval, within a time established by the authority and prior to the authority and an eligible business executing a project agreement, the eligible business shall demonstrate that it has obtained site plan approval and has committed financing for, and established site control of, the qualified business facility. 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 this subsection are true under the penalty of perjury. b. Following approval by the board and compliance with the provisions of subsection a. of this section, but before the issuance of tax credits, the authority shall require an eligible business to enter into a project agreement. The terms of the project agreement shall be consistent with the eligibility requirements of section 4 of P.L.2024, c.49 (C.34:1B-397), and shall include, but not be limited to, the following: (1) a detailed description of the proposed project that will result in job creation, and the number of new full-time jobs that are approved for tax credits; (2) any personnel information that will enable the authority to administer the program; (3) a requirement that the eligible business maintain the project at a location in New Jersey for the commitment period and a provision to permit the authority to recapture all or part of any tax credits awarded, at its discretion, if the eligible business does not maintain the project at a location in New Jersey for the commitment period; (4) a requirement that the eligible business maintain the number of new full-time jobs, or the salaries thereof, to which the eligible business certified at the commencement of the eligibility period and a provision to permit the authority to proportionally reduce the tax credit award in any tax period in which the number of new full-time jobs, or the salaries thereof, is reduced below the new full-time jobs to which the eligible business certified at the commencement of the eligibility period; (5) a method for the eligible business to certify that it has met the capital investment and employment requirements of the program set forth in subsections b. and c. of section 4 of P.L.2024, c.49 (C.34:1B-397) and to report annually to the authority the number of new full-time jobs, and the salaries thereof, for which the tax credits are to be allowed; (6) representations that the eligible business is in substantial good standing with the Department of Environmental Protection, the Department of Labor and Workforce Development, and the Department of the Treasury or has entered into an agreement with the departments that includes a practical corrective action plan, the project complies with all applicable laws, and, specifically, that the project does not violate any environmental law; (7) a provision permitting an audit of the payroll records of the business from time to time, as the authority deems necessary; (8) a provision that the chief executive officer of the authority receives annual reports from the eligible business and that allows the authority to confirm that the eligible business is in substantial good standing with the Department of Environmental Protection, the Department of Labor and Workforce Development, and the Department of the Treasury or has entered into an agreement with the respective department that includes a practical corrective action plan. As part of the annual reports required by this paragraph, the eligible business shall confirm that each contractor or subcontractor performing work at the qualified business facility: is registered as required by "The Public Works Contractor Registration Act," P.L.1999, c.238 (C.34:11-56.48 et seq.); has not been debarred by the Department of Labor and Workforce Development from engaging in or bidding on Public Works Contracts in the State; and possesses a tax clearance certificate issued by the Division of Taxation in the Department of the Treasury. If the eligible business does not submit the report required under this paragraph, if the Department of Environmental Protection, the Department of Labor and Workforce Development, and the Department of the Treasury advise that the eligible business is neither in substantial good standing nor has entered into a practical corrective action plan, or if the eligible business fails to confirm that each contractor or subcontractor is in compliance with this paragraph, then the eligible business may forfeit the issuance of tax credits, pending resolution of the underlying violations or other issues; (9) a requirement for the eligible business to engage in on-site consultations with the Division of Workplace Safety and Health in the Department of Health; (10) a provision permitting the authority to amend the agreement; and (11) a provision establishing the conditions under which the authority, the eligible business, or both, may terminate the agreement. c. (1) The authority may recapture all or part of a tax credit awarded if an eligible business does not remain in compliance with the requirements of a project agreement for the duration of the commitment period. A recapture pursuant to this subsection may include interest on the recapture amount, at a rate equal to the statutory rate for corporate business or insurance premiums tax deficiencies, plus any statutory penalties, and all costs incurred by the authority and the Division of Taxation in the Department of the Treasury in connection with the pursuit of the recapture, including, but not limited to, counsel fees, court costs, and other costs of collection. Failure of the eligible business to meet any program criteria shall constitute a default and shall result in the recapture of all or part of the tax credit awarded. (2) If all or part of a tax credit sold or assigned pursuant to section 8 of P.L.2024, c.49 (C.34:1B-401) is subject to recapture, then the authority shall pursue recapture from the eligible business and not from the purchaser or assignee of the tax credit transfer certificate. The purchaser or assignee of a tax credit transfer certificate shall be subject to any limitations and conditions that apply to the use of the tax credits by the eligible business. (3) Any funds recaptured pursuant to this subsection, including penalties and interest, shall be deposited into the General Fund. d. A business may include an affiliate for any period, provided that the business provides a valid tax clearance certificate for the affiliate and a verification of the nature of the affiliate relationship during the relevant period and provided further that the affiliate provides acceptable responses to the authority's legal disclosures inquiries, as determined by the authority. A formal modification of the authority's approval of the project agreement shall not be necessary to add or remove an affiliate after approval or execution of the project agreement. e. A business may change its name filed with the authority by providing a copy of the filed amendment to the certificate of incorporation or formation, as the case may be, of the business and a valid tax clearance certificate with the business's new name. A formal modification of the authority's approval shall not be necessary to change a business's name after approval or execution of the project agreement. L.2024, c.49, s.6.