Bill Text: NJ S3308 | 2014-2015 | Regular Session | Introduced
Bill Title: Clarifies threshold eligibility requirements for certain tax credit program.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2015-12-10 - Introduced in the Senate, Referred to Senate Economic Growth Committee [S3308 Detail]
Download: New_Jersey-2014-S3308-Introduced.html
Sponsored by:
Senator PAUL A. SARLO
District 36 (Bergen and Passaic)
Senator SANDRA B. CUNNINGHAM
District 31 (Hudson)
SYNOPSIS
Clarifies threshold eligibility requirements for certain tax credit program.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning incentives for certain economic development projects and amending P.L.2014, c.63.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 10 of P.L.2014, c.63 (C.34:1B-251) is amended to read as follows:
10. a. For the purposes of this section:
"Authority" means the New Jersey Economic Development Authority established pursuant to section 4 of P.L.1974, c.80 (C.34:1B-4).
"Government entity" means the State government, a local unit of government, or a State or local government agency or authority.
"Program term" means the period of time commencing with October 24, 2014, the effective date of P.L.2014, c.63 (C.34:1B-251 et al.), and ending on December 31, 2019.
"Providing public infrastructure" means undertaking and paying for the construction of public infrastructure; contributing money or paying debt service for the construction of public infrastructure; or deeding land to a government entity for use as public infrastructure.
"Public infrastructure" means: (1) buildings and structures, such as schools; fire houses; police stations; recreation centers; public works garages; and water and sewer treatment and pumping facilities; (2) open space with improvements such as athletic fields; playgrounds; planned parks; (3) open space without improvements; and (4) public transportation facilities such as train stations and public parking facilities. To qualify as public infrastructure under this section, the facilities, land, or both, shall have a minimum fair market value of $5 million; provided, however, that multiple lands and facilities, valued individually at less than $5 million, that are part of the same redevelopment project may be aggregated to achieve the minimum $5 million requirement. In the case of open space without improvements, the land shall have a minimum fair market value of at least $1 million prior to its dedication as open space. Sidewalks, streets, roads, ramps, and jug handles shall not be deemed public infrastructure for the purposes of this section.
"Tax credit" means a credit equal to 100 percent of the applicant's cost of providing public infrastructure for use to offset a tax liability.
"Tax liability" means a liability for the taxes imposed pursuant to the "Corporation Business Tax (1945)," P.L.1945, c.162 (C.54:10A-1 et seq.), and liability for basic, general, additional, and supplemental realty transfer fees imposed pursuant to P.L.1968, c.49 (C.46:15-5 et seq.), as amended and supplemented.
b. [Commencing with the effective date of P.L.2014, c.63 (C.34:1B-251 et al.) and ending on December 31 of the fifth complete year next following,] During the program term, an applicant that has agreed to, or has provided, public infrastructure may apply to the New Jersey Economic Development Authority for a tax credit under the following conditions:
(1) The applicant either:
(a) makes a new capital investment in an amount equal to or greater than $10,000,000 [in] for public infrastructure at any time during the program term, or
(b) causes another entity by contract or development agreement to construct[,] a building, complex of buildings or other similar structures or facilities, which shall be completed [within two years following approval by the Authority,] during the program term, and which relies on the completed public infrastructure.
(2) The applicant has not received a tax credit under the "Grow New Jersey Assistance Program" established by section 3 of P.L.2011, c.149 (C.34:1B-244).
(3) The applicant has not received a grant under a State or a local Economic Redevelopment and Growth Grant program pursuant to section 4 or section 5 of P.L.2009, c.90 (C.52:27D-489d or C.52:27D-489e).
(4) The applicant is not a "Garden State Growth Zone Development Entity," as defined in section 23 of P.L.2013, c.161 (C.52:27D-489r).
(5) The applicant is not partnered with the New Jersey Sports and Exposition Authority for the capital investment pursuant to this section.
c. The New Jersey Economic Development Authority shall grant an application for a tax credit if the government entity receiving the public infrastructure adopts a resolution and files it with the authority, consenting to the award of the tax credit and the ownership of the public infrastructure is transferred to that government entity, and either: (1) the construction commences after January 1, 2013; (2) the construction is completed, as evidenced by a certificate of occupancy or other certificate of completion, after January 1, 2013; (3) the first monetary or debt service payment occurs after January 1, 2013; or (4) the land is deeded to the government entity after January 1, 2013.
d. (1) The total amount of tax credits that may be awarded to an eligible applicant for a single project shall not exceed $5,000,000 and the total value of all tax credits approved by the authority pursuant to P.L.2014, c.63 (C.34:1B-251 et al.) shall not exceed $25,000,000.
(2) A tax credit granted pursuant to this section may be transferred in the same manner as tax credits are transferred under section 33 of P.L.2009, c.90 (C.34:1B-209.1).
(3) Nothing in this section shall prohibit an applicant from applying for and being awarded multiple tax credit awards based on separate public infrastructure projects.
e. The chief executive of the authority, in consultation with the Director of the Division of Taxation in the Department of the Treasury, may adopt rules and regulations pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), necessary to implement the provisions of this section.
(cf: P.L.2014, c.63, s.10)
2. This act shall take effect immediately and shall be retroactive to October 24, 2014.
STATEMENT
This bill amends section 10 of P.L.2014, c.63 (C. 34:1B-251) to clarify threshold eligibility requirements for the tax credit program created under that section for redevelopers that donate public infrastructure. The bill clarifies that during the term of the program term, the period of time commencing with October 24, 2014, the effective date of P.L.2014, c.63 (C.34:1B-251 et al.), and ending on December 31, 2019, a redeveloper that that has either agreed to provide public infrastructure, or has provided public infrastructure, may apply to the New Jersey Economic Development Authority for a tax credit if the applicant either:
· makes a new capital investment in an amount equal to or greater than $10,000,000 for public infrastructure at any time during the program term, or
· causes another entity, by contract or development agreement, to construct a building, complex of buildings or other similar structures or facilities, to be completed during the program term, and which relies on the completed public infrastructure.
