ASSEMBLY, No. 3680

STATE OF NEW JERSEY

215th LEGISLATURE

 

INTRODUCED JANUARY 14, 2013

 


 

Sponsored by:

Assemblyman  ALBERT COUTINHO

District 29 (Essex)

Assemblyman  TROY SINGLETON

District 7 (Burlington)

Assemblywoman  BONNIE WATSON COLEMAN

District 15 (Hunterdon and Mercer)

Assemblyman  RUBEN J. RAMOS, JR.

District 33 (Hudson)

Assemblyman  JERRY GREEN

District 22 (Middlesex, Somerset and Union)

Assemblyman  JON M. BRAMNICK

District 21 (Morris, Somerset and Union)

Assemblyman  ANTHONY M. BUCCO

District 25 (Morris and Somerset)

 

Co-Sponsored by:

Assemblymen Burzichelli, Coughlin, Assemblywoman Stender, Assemblyman Fuentes, Assemblywomen Mosquera, Riley, Lampitt and N.Munoz

 

 

 

 

SYNOPSIS

     “The New Jersey Economic Opportunity Act of 2013”; provides financial incentives for expansion or conversion of certain redevelopment projects.

 

CURRENT VERSION OF TEXT

     As introduced.

  


An Act concerning financial incentives for the expansion or conversion of certain redevelopment projects and amending various parts of the statutory law.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    (New section) This act shall be known and may be cited as the “New Jersey Economic Opportunity Act of 2013.”

 

     2.    Section 3 of P.L.1996, c.25 (C.34:1B-114) is amended to read as follows:

     3.    a. The Business Retention and Relocation Assistance Grant Program is hereby established as a program under the jurisdiction of the New Jersey Economic Development Authority and shall be administered by the authority.  The purpose of the program is to encourage economic development and job creation and to preserve jobs that currently exist in New Jersey but which are in danger of being relocated to premises outside of the State.  To implement that purpose, and to the extent that funding for the program is available, the program may provide grants of tax credits.  To be eligible for any grant of tax credits pursuant to P.L.1996, c.25 (C.34:1B-112 et seq.), a business shall demonstrate to the authority, at the time of application, that the grant of tax credits and resultant retention of full-time jobs and any capital investment will yield a net positive benefit to the State.  The net benefit resulting from the retention of full-time jobs and any capital investment by a business that has had grant pre-application meetings with the authority and has executed contracts relating to the new business location during the period commencing May 1, 2010 until the enactment of P.L.2010, c.123, shall be calculated from the date of the initial grant pre-application meeting.

     b.    (1)        To the extent that an application under P.L.1996, c.25 (C.34:1B-112 et seq.) has been received by the authority prior to the effective date of the “New Jersey Economic Opportunity Act of 2013,” P.L.    , c.    (C.       ) (pending before the Legislature as this bill), and, to the extent that there remains sufficient financial authorization for the grant of tax credits, the authority is authorized to consider such application in the same manner as had previously been provided and to make a grant of tax credits to eligible applicants, provided that the authority shall take final action on such grant of tax credits no later than 180 calendar days after the effective date of the “New Jersey Economic Opportunity Act of 2013,” P.L.    , c.    (C.       ) (pending before the Legislature as this bill).

     (2)   A business shall apply for a grant of tax credits under the Business Retention and Relocation Assistance Grant Program prior to the effective date of the “New Jersey Economic Opportunity Act of 2013,” P.L.    , c.    (C.       ) (pending before the Legislature as this bill), and shall submit its documentation for approval of a grant of tax credits no later than July 1, 2013.

     (3)   If any business has submitted an application under P.L.1996, c.25 (C.34:1B-112 et seq.) and such application has not been approved for any reason, such lack of approval shall not serve to prejudice in any way the consideration of any new application as may be submitted by a business for the provision of incentives offered pursuant to the “New Jersey Economic Opportunity Act of 2013,” P.L.    , c.    (C.       ) (pending before the Legislature as this bill).

(cf: P.L.2010, c.123, s.2)

 

     3.    Section 4 of P.L.1996, c.26 (C.34:1B-127) is amended to read as follows:

     4.    a. A business may apply to the authority for a grant for any project which:

     (1)   Will create at least 25 eligible positions in the base years; or

     (2)   Will create at least 10 eligible positions in the base years if the business is an advanced computing company, an advanced materials company, a biotechnology company, an electronic device technology company, an environmental technology company, or a medical device technology company.

     b.    In the case of a business which is a landlord, the business may apply to the authority for a grant for any project in which at least 25 eligible positions are created in the base years.

     c.     A project which consists solely of point-of-final-purchase retail facilities shall not be eligible for a grant under [this act] P.L.1996, c.26 (C.34:1B-124 et seq.).  If a project consists of both point-of-final-purchase retail facilities and non-retail facilities, only the portion of the project consisting of non-retail facilities shall be eligible for a grant, and only the withholdings from new employees which are employed in the portion of the project which represents non-retail facilities shall be used to determine the amount of the grant.  If a warehouse facility is part of a point-of-final-purchase retail facility and supplies only that facility, the warehouse facility shall not be eligible for a grant.  For the purposes of [this act] P.L.1996, c.26 (C.34:1B-124 et seq.), catalog distribution centers shall not be considered point-of-final-purchase retail facilities.

     d.    (1)        To the extent that an application under P.L.1996, c.26 (C.34:1B-124 et seq.) has been received by the authority prior to the effective date of the “New Jersey Economic Opportunity Act of 2013,” P.L.    , c.    (C.       ) (pending before the Legislature as this bill), and, to the extent that there remains sufficient financial authorization for the grant, the authority is authorized to consider such application in the same manner as had previously been provided and to make a grant to eligible applicants, provided that the authority shall take final action on such grant no later than 180 calendar days after the effective date of the “New Jersey Economic Opportunity Act of 2013,” P.L.    , c.    (C.       ) (pending before the Legislature as this bill).

     (2)   A business shall apply for a grant under the Business Employment Incentive Program prior to the effective date of the “New Jersey Economic Opportunity Act of 2013,” P.L.   , c.   (C.     ) (pending before the Legislature as this bill), and shall submit its documentation for approval of a grant no later than July 1, 2013.

     (3)   If any business has submitted an application under P.L.1996, c.26 (C.34:1B-124 et seq.) and such application has not been approved for any reason, such lack of approval shall not serve to prejudice in any way the consideration of any new application as may be submitted by a business for the provision of incentives offered pursuant to the “New Jersey Economic Opportunity Act of 2013,” P.L.    , c.    (C.       ) (pending before the Legislature as this bill).

(cf: P.L.2003, c.166, s.2)

 

     4.    Section 3 of P.L.2007, c.346 (C.34:1B-209) is amended to read as follows:

     3.    a. (1) A business, upon application to and approval from the authority, shall be allowed a credit of 100 percent of its capital investment, made after the effective date of P.L.2007, c.346 (C.34:1B-207 et seq.) but prior to its submission of documentation pursuant to subsection c. of this section, in a qualified business facility within an eligible municipality, pursuant to the restrictions and requirements of this section.  To be eligible for any tax credits authorized under this section, a business shall demonstrate to the authority, at the time of application, that the State's financial support of the proposed capital investment in a qualified business facility will yield a net positive benefit to both the State and the eligible municipality. The value of all credits approved by the authority pursuant to P.L.2007, c.346 (C.34:1B-207 et seq.) shall not exceed $1,750,000,000.

     (2)   A business, other than a tenant eligible pursuant to paragraph (3) of this subsection, shall make or acquire capital investments totaling not less than $50,000,000 in a qualified business facility, at which the business shall employ not fewer than 250 full-time employees to be eligible for a credit under this section.  A business that acquires a qualified business facility shall also be deemed to have acquired the capital investment made or acquired by the seller.

     (3)   A business that is a tenant in a qualified business facility, the owner of which has made or acquired capital investments in the facility totaling not less than $50,000,000, shall occupy a leased area of the qualified business facility that represents at least $17,500,000 of the capital investment in the facility at which the tenant business and up to two other tenants in the qualified business facility shall employ not fewer than 250 full-time employees in the aggregate to be eligible for a credit under this section.  The amount of capital investment in a facility that a leased area represents shall be equal to that percentage of the owner's total capital investment in the facility that the percentage of net leasable area leased by the tenant is of the total net leasable area of the qualified business facility.  Capital investments made by a tenant shall be deemed to be included in the calculation of the capital investment made or acquired by the owner, but only to the extent necessary to meet the owner's minimum capital investment of $50,000,000.  Capital investments made by a tenant and not allocated to meet the owner's minimum capital investment threshold of $50,000,000 shall be added to the amount of capital investment represented by the tenant's leased area in the qualified business facility.

     (4)   A business shall not be allowed tax credits under this section if the business participates in a business employment incentive grant relating to the same capital and employees that qualify the business for this credit, or if the business receives assistance pursuant to P.L.1996, c.25 (C.34:1B-112 et seq.).  A business that is allowed a tax credit under this section shall not be eligible for incentives authorized pursuant to P.L.2002, c.43 (C.52:27BBB-1 et al.).  A business shall not qualify for a tax credit under this section, based upon capital investment and employment of full-time employees, if that capital investment or employment was the basis for which a grant was provided to the business pursuant to the "InvestNJ Business Grant Program Act," P.L.2008, c.112 (C.34:1B-237 et seq.).

     (5)   Full-time employment for an accounting or privilege period shall be determined as the average of the monthly full-time employment for the period.

     (6)   The capital investment of the owner of a qualified business facility is that percentage of the capital investment made or acquired by the owner of the building that the percentage of net leasable area of the qualified business facility not leased to tenants is of the total net leasable area of the qualified business facility.

     (7)   A business shall be allowed a tax credit of 100 percent of its capital investment, made after the effective date of P.L.2011, c.89 but prior to its submission of documentation pursuant to subsection c. of this section, in a qualified business facility that is part of a mixed use project, provided that (a) the qualified business facility represents at least $17,500,000 of the total capital investment in the mixed use project, (b) the business employs not fewer than 250 full-time employees in the qualified business facility, and (c) the total capital investment in the mixed use project of which the qualified business facility is a part is not less than $50,000,000.  The allowance of credits under this paragraph shall be subject to the restrictions and requirements, to the extent that those are not inconsistent with the provisions of this paragraph, set forth in paragraphs (1) through (6) of this subsection, including but not limited to the requirement that the business shall demonstrate to the authority, at the time of application, that the State's financial support of the proposed capital investment in a qualified business facility will yield a net positive benefit to both the State and the eligible municipality.

     (8)   In determining whether a proposed capital investment will yield a net positive benefit, the authority shall not consider the transfer of an existing job from one location in the State to another location in the State as the creation of a new job, unless (a) the business proposes to transfer existing jobs to a municipality in the State as part of a consolidation of business operations from two or more other locations that are not in the same municipality whether in-State or out-of-State, or (b) the business's chief executive officer, or equivalent officer, submits a certification to the authority indicating that the existing jobs are at risk of leaving the State and that the business's chief executive officer, or equivalent officer, has reviewed the information submitted to the authority and that the representations contained therein are accurate, and the business intends to employ not fewer than 500 full-time employees in the qualified business facility.  In the event that this certification by the business's chief executive officer, or equivalent officer, is found to be willfully false, the authority may revoke any award of tax credits in their entirety, which revocation shall be in addition to any other criminal or civil penalties that the business and the officer may be subject to.  When considering an application involving intra-State job transfers, the authority shall require the company to submit the following information as part of its application: a full economic analysis of all locations under consideration by the company; all lease agreements, ownership documents, or substantially similar documentation for the business's current in-State locations; and all lease agreements, ownership documents, or substantially similar documentation for the potential out-of-State location alternatives, to the extent they exist.  Based on this information, and any other information deemed relevant by the authority, the authority shall independently verify and confirm, by way of making a factual finding by separate vote of the authority's board, the business's assertion that the jobs are actually at risk of leaving the State, before a business may be awarded any tax credits under this section.

     b.    (1)        To the extent that applications under P.L.2007, c.346 (C.34:1B-207 et seq.) have been received by the authority prior to the effective date of the “New Jersey Economic Opportunity Act of 2013,” P.L.    , c.    (C.       ) (pending before the Legislature as this bill), and, to the extent that there remains sufficient financial authorization for the award of a tax credit, the authority is authorized to consider such applications in the same manner as had previously been provided and to make awards of tax credits to eligible applicants, provided that the authority must take final action on such awards not later than 180 calendar days after the effective date of the “New Jersey Economic Opportunity Act of 2013,” P.L.    , c.    (C.       ) (pending before the Legislature as this bill).

     (2)   A business shall apply for the credit under the “Urban Transit Hub Tax Credit Act,” P.L.2007, c.346 (C.34:1B-207 et seq.) prior to [July 1, 2014] the effective date of P.L.    , c.    (C.       ) (pending before the Legislature as this bill), and shall submit its documentation for approval of its credit amount no later than [July 28, 2017] April 26, 2017.

     (3)   If any business has submitted an application under P.L.2007, c.346 (C.34:1B-207 et seq.) and such application has not been approved for any reason, such lack of approval shall not serve to prejudice in any way the consideration of any new application as may be submitted by such project for the provision of incentives offered pursuant to the “New Jersey Economic Opportunity Act of 2013,” P.L.    , c.    (C.       ) (pending before the Legislature as this bill).

     c.     (1) The amount of credit allowed shall, except as otherwise provided, be equal to the capital investment made by the business, or the capital investment represented by the business' leased area, or area owned by the business as a condominium, and shall be taken over a 10-year period, at the rate of one-tenth of the total amount of the business' credit for each tax accounting or privilege period of the business, beginning with the tax period in which the business is first certified by the authority as having met the investment capital and employment qualifications, subject to any reduction or disqualification as provided by subsection d. of this section as determined by annual review by the authority.  In conducting its annual review, the authority may require a business to submit any information determined by the authority to be necessary and relevant to its review.

     The credit amount for any tax period ending after July 28, 2017 during which the documentation of a business' credit amount remains uncertified shall be forfeited, although credit amounts for the remainder of the years of the 10-year credit period shall remain available to it.

     The credit amount that may be taken for a tax period of the business that exceeds the final liabilities of the business for the tax period may be carried forward for use by the business in the next 20 successive tax periods, and shall expire thereafter, provided that the value of all credits approved by the authority against tax liabilities pursuant to P.L.2007, c.346 (C.34:1B-207 et seq.) in any fiscal year shall not exceed $150,000,000.

     The amount of credit allowed for a tax period to a business that is a tenant in a qualified business facility shall not exceed the business' total lease payments for occupancy of the qualified business facility for the tax period.

     (2)   A business that is a partnership shall not be allowed a credit under this section directly, but the amount of credit of an owner of a business shall be determined by allocating to each owner of the partnership that proportion of the credit of the business that is equal to the owner of the partnership's share, whether or not distributed, of the total distributive income or gain of the partnership for its tax period ending within or with the owner's tax period, or that proportion that is allocated by an agreement, if any, among the owners of the partnership that has been provided to the Director of the Division of Taxation in the Department of the Treasury by such time and accompanied by such additional information as the director may require.

     (3)   The amount of credit allowed may be applied against the tax liability otherwise due pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5), pursuant to sections 2 and 3 of P.L.1945, c.132 (C.54:18A-2 and 54:18A-3), pursuant to section 1 of P.L.1950, c.231 (C.17:32-15), or pursuant to N.J.S.17B:23-5.

     d.    (1) If, in any tax period, fewer than 200 full-time employees of the business at the qualified business facility are employed in new full-time positions, the amount of the credit otherwise determined pursuant to final calculation of the award of tax credits pursuant to subsection c. of this section shall be reduced by 20 percent for that tax period and each subsequent tax period until the first period for which documentation demonstrating the restoration of the 200 full-time employees employed in new full-time positions at the qualified business facility has been reviewed and approved by the authority, for which tax period and each subsequent tax period the full amount of the credit shall be allowed; provided, however, that for businesses applying before January 1, 2010, there shall be no reduction if a business relocates to an urban transit hub from another location or other locations in the same municipality.  For the purposes of this paragraph, a "new full-time position" means a position created by the business at the qualified business facility that did not previously exist in this State.

     (2)   If, in any tax period, the business reduces the total number of full-time employees in its Statewide workforce by more than 20 percent from the number of full-time employees in its Statewide workforce in the last tax accounting or privilege period prior to the credit amount approval under subsection a. of this section, then the business shall forfeit its credit amount for that tax period and each subsequent tax period, until the first tax period for which documentation demonstrating the restoration of the business' Statewide workforce to the threshold levels required by this paragraph has been reviewed and approved by the authority, for which tax period and each subsequent tax period the full amount of the credit shall be allowed.

     (3)   If, in any tax period, (a) the number of full-time employees employed by the business at the qualified business facility located in an urban transit hub within an eligible municipality drops below 250, or (b) the number of full-time employees, who are not the subject of intra-State job transfers, pursuant to paragraph (8) of subsection a. of this section, employed by the business at any other business facility in the State, whether or not located in an urban transit hub within an eligible municipality, drops by more than 20 percent from the number of full-time employees in its workforce in the last tax accounting or privilege period prior to the credit amount approval under this section, then the business shall forfeit its credit amount for that tax period and each subsequent tax period, until the first tax period for which documentation demonstrating the restoration of the number of full-time employees employed by the business at the qualified business facility to 250 or an increase above the 20 percent reduction has been reviewed and approved by the authority, for which tax period and each subsequent tax period the full amount of the credit shall be allowed.

     (4)   (i) If the qualified business facility is sold in whole or in part during the 10-year eligibility period the new owner shall not acquire the capital investment of the seller and the seller shall forfeit all credits for the tax period in which the sale occurs and all subsequent tax periods, provided however that any credits of tenants shall remain unaffected.

     (ii)   If a tenant subleases its tenancy in whole or in part during the 10-year eligibility period the new tenant shall not acquire the credit of the sublessor, and the sublessor tenant shall forfeit all credits for the tax period of its sublease and all subsequent tax periods.

     e.     (1) The Executive Director of the New Jersey Economic Development Authority, in consultation with the Director of the Division of Taxation in the Department of the Treasury, shall adopt rules in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) as are necessary to implement this act, including but not limited to: examples of and the determination of capital investment; the enumeration of eligible municipalities; specific delineation of urban transit hubs; the determination of the limits, if any, on the expense or type of furnishings that may constitute capital improvements; the promulgation of procedures and forms necessary to apply for a credit, including the enumeration of the certification procedures and allocation of tax credits for different phases of a qualified business facility or mixed use project; and provisions for credit applicants to be charged an initial application fee, and ongoing service fees, to cover the administrative costs related to the credit.

     (2)   Through regulation, the Economic Development Authority shall establish standards based on the green building manual prepared by the Commissioner of Community Affairs pursuant to section 1 of P.L.2007, c.132 (C.52:27D-130.6), regarding the use of renewable energy, energy-efficient technology, and non-renewable resources in order to reduce environmental degradation and encourage long-term cost reduction.

(cf: P.L.2012, c.35, s.1)

 

     5.    Section 33 of P.L.2009, c.346 (C.34:1B-209.1) is amended to read as follows:

     33.  A business may apply to the Director of the Division of Taxation in the Department of the Treasury and the executive director of the authority for a tax credit transfer certificate, covering one or more years, in lieu of the business being allowed any amount of the credit against the tax liability of the business.  The tax credit transfer certificate, upon receipt thereof by the business from the director and the executive director of the authority, may be sold or assigned, in full or in part, to any other person that may have a tax liability pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5), pursuant to sections 2 and 3 of P.L.1945, c.132 (C.54:18A-2 and 54:18A-3), pursuant to section 1 of P.L.1950, c.231 (C.17:32-15), or pursuant to N.J.S.17B:23-5.  The certificate provided to the business shall include a statement waiving the business's right to claim that amount of the credit against the taxes that the business has elected to sell or assign.  The sale or assignment of any amount of a tax credit transfer certificate allowed under this section shall not be exchanged for consideration received by the business of less than 75 percent of the transferred credit amount before considering any further discounting to present value which shall be permitted. Any amount of a tax credit transfer certificate used by a purchaser or assignee against a tax liability shall be subject to the same limitations and conditions that apply to the use of the credit by the business that originally applied for and was allowed the credit.

(cf: P.L.2009, c.90, s.33)

 

     6.    Section 2 of P.L.2011, c.149 (C.34:1B-243) is amended to read as follows:

     2.    As used in [this act] P.L.2011, c.149 (C.34:1B-242 et seq.):

     "Affiliate" means an entity that directly or indirectly controls, is under common control with, or is controlled by the business. 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 Internal Revenue Code of 1986 (26 U.S.C.s.1563) or the entity is an organization in a group of organizations under common control as defined pursuant to subsection (b) or (c) of section 414 of the Internal Revenue Code of 1986 (26 U.S.C.s.414).  A taxpayer may establish by clear and convincing evidence, as determined by the Director of the Division of Taxation in the Department of the Treasury, that control exists in situations involving lesser percentages of ownership than required by those statutes.  An affiliate of a business may contribute to meeting either the qualified investment or full-time employee requirements of a business that applies for a credit under section 3 of P.L.2007, c.346 (C.34:1B-209).

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

     "Business" means an applicant proposing to own or lease premises in a qualified business facility that is a corporation that is subject to the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5), a corporation that is subject to the tax imposed pursuant to sections 2 and 3 of P.L.1945, c.132 (C.54:18A-2 and 54:18A-3), section 1 of P.L.1950, c.231 (C.17:32-15) or N.J.S.17B:23-5, or is a partnership, an S corporation, [or] a limited liability corporation, or a non-profit corporation.  A business shall include an affiliate of the business if that business applies for a credit based upon any capital investment made by or full-time employees of an affiliate.

     "Capital investment" in a qualified business facility means expenses by a business or any affiliate of the business incurred after application [, but before the end of the tenth year after, the effective date of P.L.2011, c.149 (C.34:1B-242 et al.)] for: a. site preparation and construction, repair, renovation, improvement, equipping, or furnishing on real property or of a building, structure, facility, or improvement to real property; and b. obtaining and installing furnishings and machinery, apparatus, or equipment for the operation of a business on real property or in a building, structure, facility, or improvement to real property.  In addition to the foregoing, if a business acquires or leases premises in a qualified business facility, the capital investment made or acquired by the seller or owner, as the case may be, if pertaining primarily to the premises, shall be considered a capital investment by the business and, if pertaining generally to the qualified business facility, shall be allocated to each premises in the qualified business facility on the basis of the gross leasable area of each premises in relation to the total gross leasable in the facility.  The capital investment described herein may include any capital investment made or acquired prior to the date of application by the business so long as the amount of capital investment made or acquired by the business, any affiliate of the business, or any owner after the date of application equals at least 50 percent of the amount of capital investment made or acquired prior to the date of application.

     “Deep poverty pocket” means any area comprised of three or more contiguous census tracts determined by the United States Census Bureau as having, at the time of an application for a project, an average federal poverty level of 20 percent or more.

     “Disaster recovery project” means a redevelopment project located on property that has been damaged or destroyed as a result of a federally-declared disaster.

     “Distressed municipality” means a municipality, other than a municipality qualifying under section 2 of P.L.2007, c.346 (C.34:1B-208), a municipality qualified to receive assistance under P.L.1978, c.14 (C.52:27D-178 et seq.), a municipality under the supervision of the Local Finance Board pursuant to the provisions of the "Local Government Supervision Act (1947)," P.L.1947, c.151 (C.52:27BB-1 et seq.), or a municipality identified by the Director of the Division of Local Government Services in the Department of Community Affairs to be facing serious fiscal distress.

     “Eligibility period” means the period in which a business may claim a tax credit under the Grow New Jersey Assistance Program, beginning with the tax period in which the authority accepts certification of the business that it has met the capital investment and employment requirements of the Grow New Jersey Assistance Program and extending thereafter for a period of not more than ten years, with the duration to be determined solely at the discretion of the applicant.

     "Eligible position" means a full-time [employee] position [retained or created by] in a business in this State [for which a business provides employee health benefits under a group health plan as defined under section 14 of P.L.1997, c.146 (C.17B:27-54), a health benefits plan as defined under section 1 of P.L.1992, c.162 (C.17B:27A-17), or a policy or contract of health insurance covering more than one person issued pursuant to Article 2 of chapter 27 of Title 17B of the New Jersey Statutes] which the business either has filled with a new full-time employee or a retained full-time employee.

     "Full-time employee" means a person employed by the business for consideration for at least 35 hours a week, or who renders any other standard of service generally accepted by custom or practice as full-time employment, or a person who is employed by a professional employer organization pursuant to an employee leasing agreement between the business and the professional employer organization, in accordance with P.L.2001, c.260 (C.34:8-67 et seq.) for at least 35 hours a week, or who renders any other standard of service generally accepted by custom or practice as full-time employment, and whose wages are subject to withholding as provided in the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq. or [an employee] a person who is a resident of another State but whose income is not subject to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq. or who is a partner of a business who works for the partnership for at least 35 hours a week, or who renders any other standard of service generally accepted by custom or practice as full-time employment, and whose distributive share of income, gain, loss, or deduction, or whose guaranteed payments, or any combination thereof, is subject to the payment of estimated taxes, as provided in the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., with a person to be provided, by the business, with employee health benefits under a group health plan as defined under section 14 of P.L.1997, c.146 (C.17B:27-54), a health benefits plan as defined under section 1 of P.L.1992, c.162 (C.17B:27A-17), or a policy or contract of health insurance covering more than one person issued pursuant to Article 2 of chapter 27 of Title 17B of the New Jersey Statutes.  With respect to the maritime industry, a standard of service generally accepted by custom or practice as full-time employment shall include, but not be limited to, employees that have been hired by way of a labor union hiring hall or its equivalent.  For purposes of the foregoing sentence, 35 hours of employment per week at a qualified business facility shall constitute one “full-time employee,” regardless of whether or not the hours of work were performed by one or more persons.  Also in respect to the maritime industry, the requirement that employee health benefits are to be provided shall be deemed to be satisfied if such benefits are provided in accordance with industry practice by a third party obligated to provide such benefits pursuant to a collective bargaining agreement.  "Full-time employee" shall not include any person who works as an independent contractor or on a consulting basis for the business.

     “Full-time job” means an eligible position which exists within the business at the qualified business facility that is either a new full-time job or a retained full-time job.

     “Incentive agreement” means the contract between the business and the authority, which sets forth the terms and conditions under which the business shall be eligible to receive the incentives authorized pursuant to the “New Jersey Economic Opportunity Act of 2013,” P.L.    , c.    (C.       ) (pending before the Legislature as this bill).

     “Incentive effective date” means the date, after approval of an application for incentives from the Grow New Jersey Assistance Program by the authority, on which the business has completed all of the actions required in order to qualify for the commencement of its receipt of those incentives, with such completion evidenced by the issuance of a certification to that effect by the authority.

     “Minimum environmental and sustainability standards” means standards established by the authority in accordance with the green building manual prepared by the Commissioner of Community Affairs pursuant to section 1 of P.L.2007, c.132 (C.52:27D-130.6), regarding the use of renewable energy, energy-efficient technology, and non-renewable resources in order to reduce environmental degradation and encourage long-term cost reduction.

     “New full-time employee” means a full-time employee who is employed by the business in an eligible position that did not exist prior to the date on which the business submitted an application to the Grow New Jersey Assistance Program.

     "New full-time job" means an eligible position created by the business at the qualified business facility that did not previously exist in this State.  For the purposes of determining a number of new full-time jobs, the eligible positions of an affiliate shall be considered eligible positions of the business.

     “Other eligible areas” means any qualified incentive area other than a site in an urban transit hub municipality, a site in a distressed municipality, or a site in other priority areas.

     “Other priority areas” means any area, other than a site in an urban transit hub municipality or a site in a distressed municipality, designated pursuant to P.L.1985, c.398 (C.52:18A-196 et seq.) as Planning Area 1 (Metropolitan), Planning Area 2 (Suburban) as well as any location in the State that is a deep poverty pocket, a designated center or a designated growth center in an endorsed plan, the site of a proposed qualified incubator facility, transit oriented development, disaster recovery project, or tourism destination project, or any federally owned land approved for closure under a federal Base Realignment Closing Commission action, or any vacant commercial building having over 400,000 square feet of office, laboratory, or industrial space available for occupancy for a period of over one year or any site that has been negatively impacted by the approval of a “qualified business facility,” as defined pursuant to section 2 of P.L.2007, c.346 (C.34:1B-208).

     “Owner” means an entity that owns all or part of a qualified business facility in which a business proposes to lease or purchase premises, subject to the award of tax credits under the Grow New Jersey Assistance Program.

     "Partnership" means an entity classified as a partnership for federal income tax purposes.

     "Professional employer organization" means an employee leasing company registered with the Department of Labor and Workforce Development pursuant to P.L.2001, c.260 (C.34:8-67 et seq.).

     "Program" means the "Grow New Jersey Assistance Program" established pursuant to section 3 of P.L.2011, c.149 (C.34:1B-244), as amended by the “New Jersey Economic Opportunity Act of 2013,” P.L.    , c.    (C.       ) (pending before the Legislature as this bill).

     "Qualified business facility" means any building, complex of buildings or structural components of buildings, and all machinery and equipment located within a qualified incentive area, used in connection with the operation of a business.

     "Qualified incentive area" means [an] any area designated pursuant to P.L.1985, c.398 (C.52:18A-196 et seq.) as Planning Area 1 (Metropolitan), Planning Area 2 (Suburban), [or any urban, regional, or town] Planning Area 3 (Fringe Planning Area), or Planning Area 4A (Rural Planning Area), a designated center under the State Development and Redevelopment Plan [; an area zoned for development pursuant to] ; or a designated growth center in an endorsed plan until June 30, 2013, or until the State Planning Commission revises and readopts New Jersey’s State Strategic Plan and adopts regulations to refine this definition as it pertains to Statewide planning areas, whichever is later; a smart growth area and planning area designated in a master plan adopted by the New Jersey Meadowlands Commission pursuant to  subsection (i) of section 6 of P.L.1968, c.404 (C.13:17-6) [or subject to a redevelopment plan adopted by the New Jersey Meadowlands Commission pursuant to section 20 of P.L.1968, c.404 (C.13:17-21); any land owned by the New Jersey Sports and Exposition Authority, established pursuant to P.L.1971, c.137 (C.5:10-1 et seq.), within the boundaries of the Hackensack Meadowlands District as delineated in section 4 of P.L.1968, c.404 (C.13:17-4); a pinelands regional growth area, a pinelands town management area, a pinelands village, or a military and federal installation area established pursuant to the pinelands comprehensive management plan adopted pursuant to P.L.1979, c.111 (C.13:18A-1 et seq.); an area designated for development, redevelopment, or economic growth within the Highlands Region; federally owned land approved for closure under any federal Base Closure and Realignment Commission action]; a regional growth area, village, and town, designated in the comprehensive management plan prepared and adopted by the Pinelands Commission pursuant to section 7 of the "Pinelands Protection Act," P.L.1979, c.111 (C.13:18A-8); the planning area of the Highlands Region as defined in section 3 of the "Highlands Water Protection and Planning Act," P.L.2004, c.120 (C.13:20-3), and any Highlands center designated by the Highlands Water Protection and Planning Council, established pursuant to section 4 of P.L.2004, c.120 (C.13:20-4); an urban enterprise zone designated pursuant to P.L.1983, c.303 (C.52:27H-60 et seq.) or P.L.2001, c.347 (C.52:27H-66.2 et al.); an area determined to be in need of redevelopment pursuant to sections 5 and 6 of P.L.1992, c.79 (C.40A:12A-5 and C.40A:12A-6) and as approved by the Department of Community Affairs; or similar area designated by the Department of Environmental Protection.  "Qualified incentive area" shall not include an area designated pursuant to the State Development and Redevelopment Plan adopted, as of the effective date of P.L.2008, c.78, pursuant to P.L.1985, c.398 (C.52:18A-196 et seq.) as Planning Area 4B (Rural/Environmentally Sensitive) or Planning Area 5 (Environmentally Sensitive), except for any area within Planning Area 4B or Planning Area 5 that is a deep poverty pocket, a designated center or a designated growth center in an endorsed plan, the site of a qualified incubator facility, transit oriented development, disaster recovery project, tourism destination project, or any federally owned land approved for closure under a federal Base Realignment Closing Commission action, or any [property consisting of a] vacant commercial building having over 400,000 square feet of office, laboratory, or industrial space available for occupancy for a period of over one year or [is] any site that has been negatively impacted by the approval of a "qualified business facility," as defined pursuant to section 2 of P.L.2007, c.346 (C.34:1B-208).

     “Qualified incubator facility” means a commercial building having over 100,000 square feet of office, laboratory, or industrial space with at least 75 percent of its gross leasable area restricted to use by technology startup companies during the period established pursuant to section 4 of P.L.2011, c.149 (C.34:1B-245).

     “Retained full-time employee” means a full-time employee who, prior to the submission of an application to the Grow New Jersey Assistance Program, was working in New Jersey but which, because of a potential relocation by the business, is at risk of being lost to another state or country.

     "Retained full-time job" means an eligible position that currently exists in New Jersey and is filled by a full-time employee but which, because of a potential relocation by the business, is at risk of being lost to another state or country.  For the purposes of determining a number of retained full-time jobs, the eligible positions of an affiliate shall be considered eligible positions of the business.

     “Technology startup company” means a for profit business that has been in operation fewer than five years and is developing or possesses a proprietary technology or business method of a high-technology or life science-related product, process, or service which the business intends to move to commercialization.

     “Tourism destination project” means a redevelopment project that will be among the most visited privately owned or operated tourism or recreation sites in the State as determined at the discretion of the authority.

     “Transit oriented development” means a project located within a 1/2-mile radius surrounding the mid-point of a New Jersey Transit Corporation, Port Authority Transit Corporation, or Port Authority Trans-Hudson Corporation rail, bus, or ferry station platform area, including all light rail stations.

     “Urban transit hub municipality” means a municipality: a. which qualifies for State aid pursuant to P.L. 1978, c. 14 (C.52:27D-178 et seq.), or which has continued to be a qualified municipality thereunder pursuant to P.L. 2007, c.111; and b. in which 30 percent or more of the value of real property was exempt from local property taxation during tax year 2006.  The percentage of exempt property shall be calculated by dividing the total exempt value by the sum of the net valuation which is taxable and that which is tax exempt.

(cf: PL.2011, c.149, s.2)

     7.    Section 3 of P.L.2011, c.149 (C.34:1B-244) is amended to read as follows:

     3.    a. The Grow New Jersey Assistance Program is hereby established as a program under the jurisdiction of the New Jersey Economic Development Authority and shall be administered by the authority.  The purpose of the program is to encourage economic development and job creation and to preserve jobs that currently exist in New Jersey but which are in danger of being relocated outside of the State.  To implement this purpose, [and to the extent that funding for the program is available,] the program may provide tax credits to eligible businesses for a term not to exceed 10 years. To be eligible for any tax credits pursuant to P.L.2011, c.149 (C.34:1B-242 et al.), as amended by the “New Jersey Economic Opportunity Act of 2013,” P.L.    , c.    (C.       ) (pending before the Legislature as this bill), a business's chief executive officer or equivalent officer shall demonstrate to the authority, at the time of application, that: (1) the business , an affiliate, or its owner, will make, acquire, or lease a capital investment [of at least $20,000,000] equal to, or greater than, the applicable amount set forth in subsection b. of this section at a qualified business facility at which it will: (a) employ [at least 100] full-time employees in retained full-time jobs in excess of the applicable number set forth in subsection c. of this section[, or] ; (b) create [at least 100] and employ new full-time jobs [in an industry identified by the authority as desirable for the State to maintain or attract; (2)] in an amount equal to or greater than the applicable number set forth in subsection c. of this section; or (c) employ a combination of retained and new full-time jobs in an amount equal to or greater than the applicable number set forth in subsection c. of this section; (2) the qualified business facility shall be constructed in accordance with the minimum environmental and sustainability standards established pursuant to the “New Jersey Economic Opportunity Act of 2013,” P.L.    , c.    (C.       ) (pending before the Legislature as this bill); (3) the capital investment resultant from the award of tax credits and the resultant retention and creation of eligible positions will yield a net positive benefit to the State; and, except as provided in subsection [d.] f. of this section, [(3)] (4) the award of tax credits will be a material factor in the business's decision to create or retain the minimum number of full-time jobs for eligibility under the program.

     b.    The minimum capital investment required to be eligible under this program shall be as follows: (1) for the rehabilitation of an existing industrial premises for continued industrial use by the business, a minimum investment of $40 per square foot of gross leasable area; (2) for the new construction of an industrial premises for industrial use by the business, a minimum investment of $80 per square foot of gross leasable area; (3) for the rehabilitation of an existing non-industrial premises for continued non-industrial use by the business, a minimum investment of $80 per square foot of gross leasable area; and (4) for the new construction of a non-industrial premises for non-industrial use by the business, a minimum investment of $160 per square foot of gross leasable area.

     c.     The minimum number of full-time employees required to be eligible under this program shall be as follows: (1) for a business that is a technology startup company, a minimum of ten (10) full-time employees; (2) for a business engaged primarily in manufacturing, a minimum of 25 full-time employees; (3) for a business engaged primarily in a targeted industry other than any industry included in paragraphs (1) or (2) of this subsection, a minimum of 35 full-time employees; and (4) for any other business, a minimum of 50 full-time employees.

     d.    To assist the authority in determining whether a proposed capital investment will yield a net positive benefit, the business's chief executive officer, or equivalent officer, shall submit a certification to the authority indicating that any [existing] retained full-time jobs are at risk of leaving the State and the date or dates at which it is expected that such retained full-time jobs would leave the State, that any projected creation of new full-time jobs would not occur but for the provision of tax credits under the program, and that the business's chief executive officer, or equivalent officer, has reviewed the information submitted to the authority and that the representations contained therein are accurate.  In the event that this certification by the business's chief executive officer, or equivalent officer, is found to be willfully false, the authority may revoke any award of tax credits in their entirety, which revocation shall be in addition to any other criminal or civil penalties that the business and the officer may be subject to.  When considering an application involving intra-State job transfers, the authority shall require the business to submit the following information as part of its application: a full economic analysis of all locations under consideration by the business; all lease agreements, ownership documents, or substantially similar documentation for the business's current in-State locations; and all lease agreements, ownership documents, or substantially similar documentation for the potential out-of-State location alternatives, to the extent they exist.  Based on this information, and any other information deemed relevant by the authority, the authority shall independently verify and confirm, by way of making a factual finding by separate vote of the authority's board, the business's assertion that the jobs are actually at risk of leaving the State and as to the date or dates at which the authority expects that such jobs would actually leave the State, before a business may be awarded any tax credits under this section.

     [c.] e.  A project that consists solely of point-of-final-purchase retail facilities shall not be eligible for a grant of tax credits.  If a project consists of both point-of-final-purchase retail facilities and non-retail facilities, only the portion of the project consisting of non-retail facilities shall be eligible for a grant of tax credits.  If a warehouse facility is part of a point-of-final-purchase retail facility and supplies only that facility, the warehouse facility shall not be eligible for a grant of tax credits.  For the purposes of this section, catalog distribution centers shall not be considered point-of-final-purchase retail facilities.

     [d.] f. The authority may determine as eligible for tax credits under the program any business that is required to respond to a request for proposals and to fulfill a contract with the federal government although the business's chief executive officer or equivalent officer has not demonstrated to the authority that the award of tax credits will be a material factor in the business's decision to retain [at least 100] the minimum number of full-time jobs, as otherwise required by [paragraph (3) of subsection a. of] this section.  The authority may, in its discretion, consider the economic benefit of the retained jobs servicing the contract in conducting a net benefit analysis required by paragraph [(2)] 3 of subsection a. of this section.  For the purposes of this subsection, "retained jobs" includes jobs that are at risk of being eliminated. Applications to the authority for eligibility under the program pursuant to the criteria set forth in this subsection shall be completed by [March] July 31, [2012] 2013.  Submission of a proposal to the federal government prior to authority approval shall not disqualify a business from the program.

(cf: PL.2011, c.149, s.3)

 

     8.    Section 4 of P.L.2011, c.149 (C.34:1B-245) is amended to read as follows:

     4.    The authority shall require an eligible business to enter into an incentive agreement prior to the issuance of tax credits.  The incentive agreement shall include, but shall not be limited to, the following:

     a.     A detailed description of the proposed project which will result in job creation or retention, and the number of full-time [employees] jobs that will be provided.

     b.    The term of the tax credits, and the first year for which the tax credits may be claimed.

     c.     Personnel information that will enable the authority to administer the program.

     d.    A requirement that the applicant maintain the project at a location in New Jersey for a period of at least 1.5 times the [number of years] duration of the [term of the tax credits] eligibility period, with at least the minimum number of full-time employees as required by [section 6 of P.L.2011, c.149 (C.34:1B-247)] this program and a provision to permit the authority to recapture all or part of any tax [credit] credits awarded, at its discretion, if the business does not remain [at the site] in compliance with this provision for the required term, with such permitted recapture not to exceed the portion of the tax credits as were awarded for periods when the business was not in compliance with this provision.

     e.     A method for the business to report annually to the authority the number of full-time employees for which the tax credits are to be made.

     f.     A provision permitting an audit of the payroll records of the business from time to time, as the authority deems necessary.

     g.     A provision which permits the authority to amend the agreement.

     h.     A provision establishing the conditions under which the agreement may be terminated [and awarded tax credits are recaptured, in whole or in part, by the authority at its discretion] .

(cf: P.L.2011, c.149, s.4)

 

     9.    Section 5 of P.L.2011, c.149 (C.34:1B-246) is amended to read as follows:

     5.    a. The [value] initial amount of [each] tax credit for an eligible business [shall be equal to $5,000 per year for a period of ten years] for each [new or retained] full-time [job] employee determined by the authority pursuant to [section 3 of P.L.2011, c.149 (C.34:1B-244) to be located at the qualified business facility, subject to the provisions of this section] the “New Jersey Economic Opportunity Act of 2013,” P.L.    , c.    (C.       ) (pending before the Legislature as this bill) shall be as set forth in subsection b. of this section.  The initial amount shall be credited to the applicant annually for each year of the eligibility period.

     b.    [In addition to any grant of tax credits determined pursuant to subsection a. of this section, a bonus award of up to an additional $3,000 per job of the amount of the original tax credits may be made to any eligible business as determined by the authority.  In making a bonus award to an eligible business, the authority shall consider the following factors, such that whether the business: (1) is an industry identified by the authority as desirable for the State to maintain or attract; (2) locates or relocates to a location within a qualified incentive area adjacent to, or within walking distance or short-distance-shuttle service of, a public transit facility, as determined by the authority, by regulation; (3) creates jobs using full-time employees in eligible positions whose annual salaries, according to the Department of Labor and Workforce Development, are greater than the average full-time salary in this State; or (4) is locating to a project site that is or has been negatively impacted by the approval of a "qualified business facility," as defined pursuant to section 2 of P.L.2007, c.346 (C.34:1B-208).]  The initial amount of the tax credit each full-time employee for projects in each class of qualified incentive area shall be as follows: (1) for a project located within an urban transit hub municipality, $5,000 per year; (2) for a project in a distressed municipality, $4,000 per year; (3) for a project in other priority areas, $3,000 per year; and (4) for a project in other eligible areas, $2,000 per year.

     c.     [Notwithstanding the provisions of subsections a. and b. of this section, (1) the amount of tax credits available to be applied by the business annually shall not exceed the lesser of one tenth of the capital investment certified by the authority pursuant to section 6 of P.L.2011, c.149 (C.34:1B-247) or $4,000,000, and (2) the number of new full-time jobs for which a business receives a tax credit shall not exceed the number of retained full-time jobs for which a business receives a tax credit, unless the business qualifies by creating at least 100 new full-time jobs in an industry identified by the authority as desirable for the State to maintain or attract.]  In addition to the initial amount of the tax credit, the amount of the tax credit to be awarded for each full-time employee shall be increased by the amounts indicated if the project meets any of the following priority criteria: (1) for projects located in a deep poverty pocket or in an area that is the subject of a Choice Neighborhoods Transformation Plan funded by the federal Department of Housing and Urban Development, an increase of $1,500 per year; (2) for a project located in a qualified incubator facility, an increase of $500 per year; (3) for a project located in a mixed-use development that incorporates sufficient workforce housing on site to accommodate a minimum of 20 percent of the full-time employees of the business, an increase of $500 per year; (4) for a project located within a 1/2-mile radius surrounding the mid-point of a New Jersey Transit Corporation, Port Authority Transit Corporation, or Port Authority Trans-Hudson Corporation rail, bus, or ferry station platform area, including all light rail stations and property located within a one-mile radius of the mid-point of the platform area of such a rail, bus, or ferry station if the property is in a qualified municipality under the "Municipal Rehabilitation and Economic Recovery Act," P.L.2002, c.43 (C.52:27BBB-1 et seq.), or within a transit oriented development, an increase of $1,500 per year; (5) for a project not eligible for the increase set forth in paragraph (4) of this subsection and at which a shuttle service is available to a commuter rail, bus, or ferry station during rush hour periods on all business days during the commitment period, an increase of $500 per year, (6) for a project whose location includes or is directly connected by rail spur to a freight rail line if the applicant utilizes that freight line as a regular part of the operation of its business during the commitment period, an increase of $1,500 per year; (7) for a project not eligible for the increase set forth in paragraph (6) of this subsection and whose location is within one mile of a freight rail line spur if the applicant utilizes that freight line as a regular part of the operation of its business during the commitment period, an increase of $500 per year; (8) for a project at which the capital investment is in excess of the minimum amount required for eligibility pursuant to this act, an increase $500 per year for each additional amount of investment that exceeds the minimum amount by 20 percent, with a maximum increase of $1,500 per year; (9) for a business that employs full-time positions at the project with an average salary in excess of the existing average salary for the county in which the project is located, an increase of $250 per year during the commitment period for each 35 percent by which the project’s average salary levels exceeds the county average salary, with a maximum increase of $1,500 per year; (10) for a business that employs or retains large numbers of new or existing full-time employees during the commitment period, the increases shall be in accordance with the following schedule: (a) if the number of qualified full-time employees is between 251 and 400, $500 per year; (b) if the number of qualified full-time employees is between 401 and 600, $750 per year; (c) if the number of qualified full-time employees is between 601 and 800, $1000 per year; (d) if the number of qualified full-time employees is between 801 and 1,000, $1,250 per year; (e) if the number of qualified full-time employees is in excess of 1,001, $1,500 per year; (11) for a business in a targeted industry, an increase of $500 per year; (12) for a business that employ a significant number of chronically unemployed or military veterans during the commitment period, an increase of $100 per year for each ten percent of the new full-time employees that are either chronically unemployed or military veterans, with a maximum increase of $500 per year; and (13) for a project materially exceeding the minimum environmental and sustainability standards by way of energy efficiency or renewable energy features, measures, or upgrades, an increase of $250 per year; and (14) for a project exceeding the Leadership in Energy and Environmental Design’s “Silver” rating standards, an additional increase of $250 per year, with a total increase of $500 per year.

     d.    The total amount of the base tax credit for an eligible business for each new or retained full-time employee determined by the authority pursuant to the “New Jersey Economic Opportunity Act of 2013,” P.L.    , c.    (C.       ) (pending before the Legislature as this bill) shall be the sum of the initial amount as pursuant to subsection b. of this section and the various additional amounts for which the project is eligible pursuant to subsection c. of this section, subject to the following limitations: (1) for a project located within in an urban transit hub municipality, the base amount per full-time employee shall not exceed $10,000 per year; (2) for a project in a distressed municipality, other than located within an urban transit hub, the base amount per full-time employee shall not exceed $8,000 per year; (3) for a project in other priority areas, the base amount per full-time employee shall not exceed $6,000 per year; and (4) for a project in other eligible areas, the base amount per full-time employee shall not exceed $4,000 per year.

     e.     After the determination by the authority of the base amount of tax credits for which a business is eligible for each full-time employee, the final amount of tax credits to be awarded shall be calculated as follows: (1) for each new full-time employee employed by the business or an affiliate at the qualified business facility, the business shall be entitled to tax credits equaling 100% of the base amount of tax credits per full-time employee; and (2) for each retained full-time employee employed by the business or an affiliate at the qualified business facility, the business shall be entitled to tax credits equaling 80 percent of the base amount of tax credits per full-time employee.

(cf: P.L.2011, c.149, s.5)

 

     10.  Section 6 of P.L.2011, c.149 (C.34:1B-247) is amended to read as follows:

     6.    a. [(1) The value of all credits approved by the authority pursuant to P.L.2011, c.149 (C.34:1B-242 et al.) shall not exceed $200,000,000, except that the value of all credits approved by the authority pursuant to this section may exceed $200,000,000 if the board of the authority determines the credits to be reasonable, justifiable, and appropriate; provided, however, the combined value of all credits approved by the authority pursuant to P.L.2007, c.346 (C.34:1B-207 et seq.) and P.L.2011, c.149 (C.34:1B-242 et al.) shall not exceed $1,750,000,000.]  (Deleted by amendment, P.L.    , c.    ) (pending before the Legislature as this bill)

     [(2) A business, including any affiliate of the business or any business that is a tenant within any qualified business facility, shall make or acquire capital investments totaling not less than $20,000,000 in a qualified business facility, at which the business shall employ not fewer than 100 full-time employees to be eligible for a credit pursuant to P.L.2011, c.149.  A business that acquires or leases a qualified business facility shall also be deemed to have acquired the capital investment made or acquired by the seller or landlord, as the case may be.]  (Deleted by amendment, P.L.    , c.    ) (pending before the Legislature as this bill)

     [(3) A business shall not be allowed tax credits pursuant to P.L.1996, c.25 (C.34:1B-112 et seq.) or P.L.1996, c.26 (C.34:1B-124 et seq.) relating to the same capital and employees that qualify the business for tax credits pursuant to P.L.2011, c.149.  A business that is allowed a tax credit under this section shall not be eligible for incentives authorized pursuant to P.L.2002, c.43 (C.52:27BBB-1 et al.).  A business shall not qualify for a tax credit under this section, based upon capital investment and employment of full-time employees, if that capital investment or employment was the basis for which a grant was provided to the business pursuant to the "Urban Transit Hub Tax Credit Act," P.L.2007, c.346 (C.34:1B-207 et seq.).]  (Deleted by amendment, P.L.    , c.    ) (pending before the Legislature as this bill)

     [(4)  Full-time employment for an accounting or privilege period shall be determined as the average of the monthly full-time employment for the period.]  (Deleted by amendment, P.L.    , c.    ) (pending before the Legislature as this bill)

     [(5)  The capital investment of the owner of a qualified business facility is that percentage of the capital investment made or acquired by the owner of the building that the percentage of net leasable area of the qualified business facility not leased to tenants is of the total net leasable area of the qualified business facility. For a business that is a tenant, the amount of capital investment in a facility that a leased area represents shall be equal to that percentage of the owner's total capital investment in the facility that the percentage of net leasable area leased by the tenant is of the total net leasable area of the qualified business facility.  Capital investments made by a tenant shall be deemed to be included in the calculation of the capital investment made or acquired by the owner, but only to the extent necessary to meet the owner's minimum capital investment of $20,000,000.  Capital investments made by a tenant and not allocated to meet the owner's minimum capital investment threshold of $20,000,000 shall be added to the amount of capital investment represented by the tenant's leased area in the qualified business facility.]  (Deleted by amendment, P.L.    , c.    ) (pending before the Legislature as this bill)

     b.    [A business shall apply for the tax credit prior to July 1, 2014, and shall submit its documentation indicating that it has met the capital investment and employment specified in the project agreement for certification of its credit amount no later than July 28, 2017.]  Full-time employment for an accounting or privilege period shall be determined as the average of the monthly full-time employment for the period.

     c.     (1) [The amount of credit allowed shall not exceed the capital investment made by the business or the capital investment represented by the business' leased area, as certified by the authority pursuant to subsection b. of this section, as having met the investment capital and employment qualifications, subject to any reduction or disqualification as provided by subsection d. of this section as determined by annual review by the authority.]  In conducting its annual review, the authority may require a business to submit any information determined by the authority to be necessary and relevant to its review.

     The credit amount for any tax period [ending after July 28, 2017, during] for which the documentation of a business' credit amount remains uncertified as of a date three years after the closing date of that period shall be forfeited, although credit amounts for the remainder of the years of the [10-year credit] eligibility period shall remain available to it.

     The credit amount that may be taken for a tax period of the business that exceeds the final liabilities of the business for the tax period may be carried forward for use by the business in the next 20 successive tax periods, and shall expire thereafter [, provided that the value of all credits approved by the authority against tax liabilities pursuant to P.L.2011, c.149, in any fiscal year shall not exceed $150,000,000 and the combined value of all credits approved by the authority pursuant to P.L.2007, c.346 (C.34:1B-207 et seq.) and P.L.2011, c.149 (C.34:1B-242 et al.) shall not exceed $1,750,000,000].

     The amount of credit allowed for [a tax] the eligibility period to a business that is a tenant in a qualified business facility shall not exceed the business' total lease payments and other documented occupancy costs for use and occupancy of the qualified business facility for the [tax] eligibility period.

     (2)   A business that is a partnership shall not be allowed a credit under this section directly, but the amount of credit of an owner of a business shall be determined by allocating to each owner of the partnership that proportion of the credit of the business that is equal to the owner of the partnership's share, whether or not distributed, of the total distributive income or gain of the partnership for its tax period ending within or with the owner's tax period, or that proportion that is allocated by an agreement, if any, among the owners of the partnership that has been provided to the Director of the Division of Taxation in the Department of the Treasury by such time and accompanied by such additional information as the director may require.

     (3)   The amount of credit allowed may be applied against the tax liability otherwise due pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5), pursuant to sections 2 and 3 of P.L.1945, c.132 (C.54:18A-2 and 54:18A-3), pursuant to section 1 of P.L.1950, c.231 (C.17:32-15), or pursuant to N.J.S.17B:23-5.

     d.    (1) If, in any tax period, the business reduces the total number of full-time employees in its Statewide workforce by more than 20 percent from the number of full-time employees in its Statewide workforce in the last tax period prior to the credit amount approval under section 3 of P.L.2011, c.149 (C.34:1B-244), then the business shall forfeit its credit amount for that tax period and each subsequent tax period, until the first tax period for which documentation demonstrating the restoration of the business' Statewide workforce to the threshold levels required by this paragraph has been reviewed and approved by the authority, for which tax period and each subsequent tax period the full amount of the credit shall be allowed.

     (2)   If, in any tax period, the number of full-time employees employed by the business at the qualified business facility located within a qualified incentive area drops below [100 or 80 percent of] the minimum number of [new and retained] full-time jobs [specified in the project agreement] required by this program, then the business shall forfeit its credit amount for that tax period and each subsequent tax period, until the first tax period for which documentation demonstrating the restoration of the number of full-time employees employed by the business at the qualified business facility to [100] the minimum number of full-time jobs required by this program.

     (3)   If, in any tax period, the number of full-time employees employed by the business at the qualified business facility located within a qualified incentive area drops below the level on which a bonus was calculated pursuant to paragraph (1) of subsection c. of section 5 of P.L.2011, c.149 (C.34:1B-246), then the business shall forfeit the amount of its tax credits attributable to such bonus for that tax period and each subsequent tax period, until the first tax period for which documentation demonstrating the restoration of the number of full-time employees employed by the business at the qualified business facility to the amount required by P.L.2011, c.149 (C.34:1B-242 et seq.) to qualify for such bonus is provided.

     (4)   (a) If the qualified business facility is sold by the owner in whole or in part during the [10-year] eligibility period, the new owner shall not acquire the capital investment of the seller and the seller shall forfeit all credits for the tax period in which the sale occurs and all subsequent tax periods, provided however that any credits of [tenants] the business shall remain unaffected.

     (b)   If a [tenant] business leases or subleases its [tenancy] premises in the qualified business facility in whole or in part during the [10-year] eligibility period, the new tenant or subtenant shall not acquire the [credit] tax credits of the [sublessor] business, and the [sublessor tenant] business shall forfeit all credits for the tax period of its lease or sublease and all subsequent tax periods.  Notwithstanding such forfeiture, a tenant that subleases less than all of its premises and does not thereby reduce its full-time employee count below the minimum number of new and retained full-time jobs required in section 3 of P.L.2011, c.149 (C.34:1B-244) shall not be affected by this paragraph.

     e.     If any business that applies to the program has previously received incentives authorized under the "Business Retention and Relocation Assistance Act," P.L.1996, c.25 (C.34:1B-112 et seq.) or the "Business Employment Incentive Program Act," P.L.1996, c.26 (C.34:1B-124 et seq.), the business shall be required to make repayment to the State in accordance with the following: if the business enters into an incentive agreement pursuant to this program and, as of the occurrence of the incentive effective date, the obligations of the business under the previously awarded incentive agreement have not ended, the authority shall be permitted to recapture a portion of the incentives previously awarded to the business, with such permitted recapture not to exceed a percentage of the total incentives as were previously awarded, with that percentage to be equal to the percentage that the amount of time remaining until the prior obligations would have been completed bears to the total duration of the prior obligations.

(cf: P.L.2012, c.35, s.4)

 

     11.  Section 8 of P.L.2011, c.149 (C.34:1B-249) is amended to read as follows:

     8.    a. The chief executive officer of the authority, in consultation with the Director of the Division of Taxation in the Department of the Treasury, shall adopt rules in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) as are necessary to implement P.L.2011, c.149 (C.34:1B-242 et al.), including but not limited to: examples of and the determination of capital investment; the enumeration of qualified incentive areas; the enumeration of specific targeted industries; specific delineation of [these] the incentive areas; the determination of the limits, if any, on the expense or type of furnishings that may constitute capital improvements; the promulgation of procedures and forms necessary to apply for a tax credit, including the enumeration of the certification procedures and allocation of tax credits for different phases of a qualified business facility; and provisions for tax credit applicants to be charged an initial application fee, and ongoing service fees, to cover the administrative costs related to the tax credit.

     b.    Through regulation, the authority shall establish standards by which qualified business facilities shall be constructed or renovated [based on the green building manual prepared by the Commissioner of Community Affairs pursuant to section 1 of P.L.2007, c.132 (C.52:27D-130.6), regarding the use of renewable energy, energy-efficient technology, and non-renewable resources in order to reduce environmental degradation and encourage long-term cost reduction] in compliance with the minimum environmental and sustainability standards.

(cf: P.L.2011, c.149, s.8)

 

     12.  Section 1 of P.L.2009, c.136 (C.52:18-42) is amended to read as follows:

     1.    As used in this act:

     "Business" means a corporation; sole proprietorship; partnership; corporation that has made an election under Subchapter S of Chapter One of Subtitle A of the Internal Revenue Code of 1986, or any other business entity through which income flows as a distributive share to its owners; limited liability company; nonprofit corporation; or any other form of business organization located either within or outside this State, but excluding any public or private institution of higher education.

     "Environmental infrastructure project" means the acquisition, construction, improvement, repair or reconstruction of all or part of any structure, facility or equipment, or real or personal property necessary for or ancillary to any (1) wastewater treatment system project, including any stormwater management or combined sewer overflow abatement projects; or (2) water supply project, as authorized pursuant to P.L.1985, c.334 (C.58:11B-1 et seq.) or P.L.1997, c.224 (C.58:11B-10.1 et al.), including any water resources project, as authorized pursuant to P.L.2003, c.162, but excluding the acquisition, construction, repair, or reconstruction of any building or other improvements to real property, or the acquisition or installation of any equipment or other personal property, that, upon completion, shall constitute a qualified employment incentive facility.

     "Financial assistance" means funds made available as a grant or loan, including funds derived as proceeds from the issuance of tax-exempt bonds by the entity providing such assistance.

     "Lead public agency" means the public entity designated by the State Treasurer pursuant to section 4 of this act to serve as the point of contact between a business and every State governmental entity having oversight of, or involvement in, a project for which the entity or entities are providing or will provide the business with financial assistance.

     "Public entity" means the State, other than the Judicial branch of State government, any county, municipality, district, or other political subdivision thereof, and any agency, authority, or instrumentality of the foregoing, including, but not limited to, any county improvement authority and any economic development agency, authority, or other entity.

     "Qualified employment incentive facility" means any building or other structure or portion of a building or other structure that, following the date on which occupation of the building or structure shall have commenced, shall be used exclusively as the premises of a project, related to the creation, relocation, or retention of jobs, that qualifies for incentives under the Business Retention and Relocation Assistance Grant Program established by section 3 of P.L.1996, c.25 (C.34:1B-114), the Business Employment Incentive Program established by section 3 of P.L.1996, c.26 (C.34:1B-126), the Grow New Jersey Assistance Program established by P.L.2011, c.149 (C.34:1B-242 et seq.), the Economic Redevelopment and Growth Grant program established by sections 3 though 18 of P.L.2009, c.90 (C.52:27D-489c et al.), the corporation business tax credit and insurance premium tax credit certificate transfer program established pursuant to section 17 of P.L.2004, c.65 (C.34:1B-120.2), the sales and use tax exemption certificate program established pursuant to section 20 of P.L.2004, c.65 (C.34:1B-186), the exemption of retail sales of energy and utility service to qualified businesses within an urban enterprise zone from the sales and use tax pursuant to section 23 of P.L.2004, c.65 (C.52:27H-87.1), the urban transit hub tax credit program established pursuant to section 3 of P.L.2007, c.346 (C.34:1B-209), or any other program as the State Treasurer shall deem to be of similar kind and purpose; provided, however, that such exclusive use shall continue for the minimum period of time prescribed by the applicable law or any regulation adopted pursuant thereto, or under any project agreement or other contract executed pursuant to such law or regulation, or if no such minimum period shall be so prescribed, for a period of four years.

     "Redevelopment project" means a specific work or improvement, including lands, buildings, structures, improvements, real and personal property or any interest therein, including lands under water, riparian rights, space rights and air rights, acquired, owned, cleared, graded, developed or redeveloped, constructed, reconstructed, rehabilitated or improved, undertaken by a developer, but excluding the acquisition, construction, repair, or reconstruction of any building or other improvements to real property, or the acquisition or installation of any equipment or other personal property, that, upon completion, shall constitute a qualified employment incentive facility.

     "Remediation" or "remediate" means all necessary actions to investigate and clean up or respond to any known, suspected, or threatened discharge of contaminants, including, as necessary, the preliminary assessment, site investigation, remedial investigation, and remedial action, provided, however, that "remediation" or "remediate" shall not include the payment of compensation for damage to, or loss of, natural resources, and shall not include the acquisition, construction, repair, or reconstruction of any building or other improvements to real property, or the acquisition or installation of any equipment or other personal property, that, upon completion, shall constitute a qualified employment incentive facility.

     "State governmental entity" means the Executive and Legislative branches of the State government, any agency or instrumentality of the State, including any board, bureau, commission, corporation, department, or division, any independent State authority, including, but not limited to, any economic development authority or agency, and any State institution of higher education.  A county, municipality, or school district, or any agency or instrumentality thereof, shall not be deemed a State governmental entity.

(cf: P.L.2009, c.136, s.1)

 

     13.  Section 18 of P.L.2008, c.46 (C.52:27D-329.9) is amended to read as follows:

     18.  a. Notwithstanding any rules of the council to the contrary, for developments consisting of newly-constructed residential units located, or to be located, within the jurisdiction of any regional planning entity required to adopt a master plan or comprehensive management plan pursuant to statutory law, including the New Jersey Meadowlands Commission pursuant to subsection (i) of section 6 of P.L.1968, c.404 (C.13:17-6), the Pinelands Commission pursuant to section 7 of the "Pinelands Protection Act," P.L.1979, c.111 (C.13:18A-8), the Fort Monmouth Economic Revitalization Planning Authority pursuant to section 5 of P.L.2006, c.16 (C.52:27I-5), or its successor, and the Highlands Water Protection and Planning Council pursuant to section 11 of P.L.2004, c.120 (C.13:20-11), but excluding joint planning boards formed pursuant to section 64 of P.L.1975, c.291 (C.40:55D-77), there shall be required to be reserved for occupancy by low or moderate income households at least 20 percent of the residential units constructed, to the extent this is economically feasible.

     b.    Subject to the provisions of subsection d. of this section, a developer of a project consisting of newly-constructed residential units being financed in whole or in part with State funds, including, but not limited to, transit villages designated by the Department of Transportation and units constructed on State-owned property, shall be required to reserve at least 20 percent of the residential units constructed for occupancy by low or moderate income households, as those terms are defined in section 4 of P.L.1985, c.222 (C.52:27D-304), with affordability controls as required under the rules of the council, unless the municipality in which the property is located has received substantive certification from the council and such a reservation is not required under the approved affordable housing plan, or the municipality has been given a judgment of repose or a judgment of compliance by the court, and such a reservation is not required under the approved affordable housing plan.

     c.     (1) The Legislature recognizes that regional planning entities are appropriately positioned to take a broader role in the planning and provision of affordable housing based on regional planning considerations.  In recognition of the value of sound regional planning, including the desire to foster economic growth, create a variety and choice of housing near public transportation, protect critical environmental resources, including farmland and open space preservation, and maximize the use of existing infrastructure, there is created a new program to foster regional planning entities.

     (2)   The regional planning entities identified in subsection a. of this section shall identify and coordinate regional affordable housing opportunities in cooperation with municipalities in areas with convenient access to infrastructure, employment opportunities, and public transportation.  Coordination of affordable housing opportunities may include methods to regionally provide housing in line with regional concerns, such as transit needs or opportunities, environmental concerns, or such other factors as the council may permit; provided, however, that such provision by such a regional entity may not result in more than a 50 percent change in the fair share obligation of any municipality; provided that this limitation shall not apply to affordable housing units directly attributable to development by the New Jersey Sports and Exposition Authority within the New Jersey Meadowlands District.

     (3)   In addition to the entities identified in subsection a. of this section, the Casino Reinvestment Development Authority, in conjunction with the Atlantic County Planning Board, shall identify and coordinate regional affordable housing opportunities directly attributable to Atlantic City casino development, which may be provided anywhere within Atlantic County, subject to the restrictions of paragraph (4) of this subsection.

     (4)   The coordination of affordable housing opportunities by regional entities as identified in this section shall not include activities which would provide housing units to be located in those municipalities that are eligible to receive aid under the "Special Municipal Aid Act," P.L.1987, c.75 (C.52:27D-118.24 et seq.), or are coextensive with a school district which qualified for designation as a "special needs district" pursuant to the "Quality Education Act of 1990," P.L.1990, c.52 (C.18A:7D-1 et al.), or at any time in the last 10 years have been qualified to receive assistance under P.L.1978, c.14 (C.52:27D-178 et seq.) and that fall within the jurisdiction of any of the regional entities specified in subsection a. of this section.

     d.    Notwithstanding the provisions of subsection b. of this section, or any other law or regulation to the contrary, for purposes of mixed use projects or qualified residential projects in which a business receives a tax credit pursuant to P.L.2007, c.346 (C.34:1B-207 et seq.) or a tax credit pursuant to section 35 of P.L.2009, c.90 (C.34:1B-209.3) or a tax credit pursuant to section 6 of P.L.2009, c.90 (C.52:27D-489f), as amended by the “New Jersey Economic Opportunity Act of 2013,” P.L.    , c.     (C.   ) (pending before the Legislature as this bill), or both, an "eligible municipality," as defined in section 2 of P.L.2007, c.346 (C.34:1B-208), or the municipality in which a redevelopment project, as defined in section 3 of P.L.2009, c.90 (C.52:27D-489c), is located, as applicable, shall have the option of deciding the percentage of newly-constructed residential units within the project, up to 20 percent of the total, required to be reserved for occupancy by low or moderate income households.  For a mixed use project or a qualified residential project that has received preliminary or final site plan approval prior to the effective date of P.L.2011, c.89, the percentage shall be deemed to be the percentage, if any, of units
required to be reserved for low or moderate income households in accordance with the terms and conditions of such approval.

(cf: P.L.2011, c.89, s.5)

 

     14.  Section 3 of P.L.2009, c.90 (C.52:27D-489c) is amended to read as follows:

     3.    As used in sections 3 through 18 of P.L.2009, c.90 (C.52:27D-489c et al.):

     "Applicant" means a developer proposing to enter into a redevelopment incentive grant agreement.

     "Ancillary infrastructure project" means [public] structures or improvements that are located [in the public right-of-way] outside the project area of a redevelopment project, including parking garages, freight rail spurs, roadway overpasses, and train station platforms, provided a developer or municipal redeveloper has demonstrated that the redevelopment project would not be economically viable or promote the use of public transportation without such improvements.

     "Authority" means the New Jersey Economic Development Authority established under section 4 of P.L.1974, c.80 (C.34:1B-4).

     “Deep poverty pocket” means any area comprised of three or more contiguous census tracts determined by the United States Census Bureau as having, at the time of an application for a project, an average federal poverty level of 20 percent or more.

     “Disaster recovery project” means a redevelopment project located on property that has been damaged or destroyed as a result of a federally-declared disaster.

     “Distressed municipality” means an eligible municipality under section 2 of P.L.2007, c.346 (C.34:1B-208), a municipality qualified to receive assistance under P.L.1978, c.14 (C.52:27D-178 et seq.), a municipality under the supervision of the Local Finance Board pursuant to the provisions of the "Local Government Supervision Act (1947)," P.L.1947, c.151 (C.52:27BB-1 et seq.), or a municipality identified by the Director of the Division of Local Government Services in the Department of Community Affairs to be facing serious fiscal distress.

     “Exempt business” means a business unrelated to the developer that operates a premises at the site of the redevelopment project but whose incurred costs to construct its respective premises are excluded from the project cost.  An exempt business shall not be subject to the requirements of the Economic Redevelopment and Growth Grant program.

     "Low income housing" means housing affordable according to federal Department of Housing and Urban Development or other recognized standards for home ownership and rental costs and occupied or reserved for occupancy by households with a gross household income equal to 50 percent or less of the median gross household income for households of the same size within the housing region in which the housing is located.

     "Developer" means any person who enters or proposes to enter into a redevelopment incentive grant agreement pursuant to the provisions of section 9 of P.L.2009, c.90 (C.52:27D-489i).  A developer also may be a municipal government or a redevelopment agency as defined in section 3 of P.L.1992, c.79 (C.40A:12A-3).

     "Director" means the Director of the Division of Taxation in the Department of the Treasury.

     "Eligible revenue" means the property tax increment and any other incremental revenues set forth in section 11 of P.L.2009, c.90 (C.52:27D-489k).

     "Incentive grant" means reimbursement of all or a portion of the project financing gap of a redevelopment project through the 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).

     "Infrastructure improvements in the public right-of-way" mean public structures or improvements located in the public right of way that are located within a project area or that constitute an ancillary infrastructure project.

     "Municipal redeveloper" means a municipal government or a redevelopment agency acting on behalf of a municipal government as defined in section 3 of P.L.1992, c.79 (C.40A:12A-3) that is an applicant for a redevelopment incentive grant agreement.

     "Project area" means land or lands under common ownership or control including through one or more property owners associations, a joint venture between one or more property owners, a redevelopment agreement with a municipality, or as otherwise established by a municipality.

     “Project cost” means the costs incurred in connection with the redevelopment project by the developer and such landlords, tenants, or other business occupants as may be part of the project 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 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, of an amount not to exceed 20 percent of the total costs, capitalized interest paid to third parties, and the cost of infrastructure improvements, including ancillary infrastructure projects, but excluding any particular costs for which the project has received federal, State, or local funding.

     "Project financing gap" means: a. the part of the total [redevelopment] project cost, including return on investment, that remains to be financed after all other sources of capital have been accounted for, including, but not limited to, developer contributed capital, which may include the appraised value of any existing improvements in the project area owned or controlled by the developer, and which shall not be less than 20 percent of the total project cost, excluding the cost of infrastructure improvements in the public right-of-way and investor or financial entity capital or loans for which the developer, after making all good faith efforts to raise additional capital, certifies that additional capital cannot be raised from other sources on a non-recourse basis; b. the cost of infrastructure improvements including any ancillary infrastructure project; and c. the amount by which total project cost exceeds the cost of an alternative location for the redevelopment project.

     "Project revenue" means all rents, fees, sales, and payments generated by a project, less taxes or other government payments.

     "Property tax increment" means the amount obtained by:

     (1)   multiplying the general tax rate levied each year by the taxable value of all the property assessed within a project area in the same year, excluding any special assessments; and

     (2)   multiplying that product by a fraction having a numerator equal to the taxable value of all the property assessed within the project area, minus the property tax increment base, and having a denominator equal to the taxable value of all property assessed within the project area.

     For the purpose of this definition, "property tax increment base" means the aggregate taxable value of all property assessed which is located within the redevelopment project area as of October 1st of the year preceding the year in which the redevelopment incentive grant agreement is authorized.

     “Qualified incubator facility” means a commercial building having over 100,000 square feet of office, laboratory, or industrial space with at least 75 percent of its gross leasable area restricted to use by technology startup companies during the commitment period.

     “Qualified residential project” means the portion of a redevelopment project that consists of multi-family residential units and represents at least $17,500,000 of the total project cost or $10,000,000 of the total project cost if the project is a disaster recovery project.

     "Qualifying economic redevelopment and growth grant incentive area" means any area designated pursuant to P.L.1985, c.398 (C.52:18A-196 et seq.) as Planning Area 1 (Metropolitan), Planning Area 2 (Suburban), [or a center as designated by the State Planning Commission; an area zoned for development pursuant to] Planning Area 3 (Fringe Planning Area), or Planning Area 4A (Rural Planning Area); a designated center, or a designated growth center in an endorsed plan until June 30, 2013, or until the State Planning Commission revises and readopts New Jersey’s State Strategic Plan and adopts regulations to refine this definition as it pertains to Statewide planning areas, whichever is later; a smart growth area and planning area designated in a master plan adopted by the New Jersey Meadowlands Commission pursuant to subsection (i) of section 6 of P.L.1968, c.404 (C.13:17-6) [or subject to a redevelopment plan adopted by the New Jersey Meadowlands Commission pursuant to section 20 of P.L.1968, c.404 (C.13:17-21); any land owned by the New Jersey Sports and Exposition Authority, established pursuant to P.L.1971, c.137 (C.5:10-1 et seq.), within the boundaries of the Hackensack Meadowlands District as delineated in section 4 of P.L.1968, c.404 (C.13:17-4); a pinelands regional growth area, a pinelands town management area, a pinelands village, or a military and federal installation area established pursuant to the pinelands comprehensive management plan adopted pursuant to P.L.1979, c.111 (C.13:18A-1 et seq.); a transit village, as determined by the Commissioner of Transportation; and federally owned land approved for closure under a federal Base Realignment Closing Commission action] ; regional growth areas, villages, and towns, designated in the comprehensive management plan prepared and adopted by the Pinelands Commission pursuant to section 7 of the "Pinelands Protection Act," P.L.1979, c.111 (C.13:18A-8); the planning area of the Highlands Region as defined in section 3 of the "Highlands Water Protection and Planning Act," P.L.2004, c.120 (C.13:20-3), and any Highlands center designated by the Highlands Water Protection and Planning Council, established pursuant to section 4 of P.L.2004, c.120 (C.13:20-4); an urban enterprise zone designated pursuant to P.L.1983, c.303 (C.52:27H-60 et seq.) or P.L.2001, c.347 (C.52:27H-66.2 et al.); an area determined to be in need of redevelopment pursuant to sections 5 and 6 of P.L.1992, c.79 (C.40A:12A-5 and 40A:12A-6) and as approved by the Department of Community Affairs; or similar areas designated by the Department of Environmental Protection.  "Qualifying economic redevelopment and growth grant incentive area" shall not include an area designated pursuant to the State Development and Redevelopment Plan adopted, as of the effective date of P.L.2008, c.78, pursuant to "State Planning Act," P.L.1985, c.398 (C.52:18A-196 et al.) as Planning Area 4B (Rural/Environmentally Sensitive) or Planning Area 5 (Environmentally Sensitive), except for any area within Planning Area 4B or Planning Area 5 that is a deep poverty pocket, a designated center or a designated growth center in an endorsed plan, any property consisting of a disaster recovery project, qualified incubator facility, tourism destination project, transit project, or vacant health facility project, any vacant commercial building, or any federally owned land approved for closure under a federal Base Realignment Closing Commission action.

     "Redevelopment incentive grant agreement" means an agreement between, (1) the State and the New Jersey Economic Development Authority and a developer, or (2) a municipality and a developer, or a municipal ordinance authorizing a project to be undertaken by a municipal redeveloper, under which, in exchange for the proceeds of an incentive grant, the developer agrees to perform any work or undertaking necessary for a redevelopment project, including the clearance, development or redevelopment, construction, or rehabilitation of any structure or improvement of commercial, industrial, residential, or public structures or improvements within a qualifying economic redevelopment and growth grant incentive area or a transit village.

     "Redevelopment project" means a specific [work] investment or improvement, including lands, buildings, improvements, real and personal property or any interest therein, including lands under water, riparian rights, space rights and air rights, acquired, owned, leased, developed or redeveloped, constructed, reconstructed, rehabilitated or improved, undertaken by a developer, owner or tenant, or both, within a project area and any ancillary infrastructure project [associated therewith] including infrastructure improvements in the public right of way, as set forth in an application to be made to the authority.  The use of the term “redevelopment project” in sections 3 through 18 of P.L.2009, c.90 (C.52:27D-489c et al.) shall not be limited to only redevelopment projects located in areas determined to be in need of redevelopment pursuant to sections 5 and 6 of P.L. 1992, c.79 (C.40A:12A-5 and 40A:12A-6).

     "Redevelopment utility" means a self-liquidating fund created by a municipality pursuant to section 12 of P.L.2009, c.90 (C.52:27D-489l) to account for revenues collected and incentive grants paid pursuant to section 11 of P.L.2009, c.90 (C.52:27D-489k), or other revenues dedicated to a redevelopment project.

     "Revenue increment base" means the amounts of all eligible revenues from sources within the redevelopment project area in the calendar year preceding the year in which the redevelopment incentive grant agreement is executed, as certified by the State Treasurer for State revenues, and the chief financial officer of the municipality for municipal revenues.

     “Tourism destination project” means a redevelopment project that will be among the most visited privately owned or operated tourism or recreation sites in the State as determined at the discretion of the authority.

     “Transit project” means a redevelopment project located within a 1/2-mile radius surrounding the mid-point of a New Jersey Transit Corporation, Port Authority Transit Corporation, or Port Authority Trans-Hudson Corporation rail, bus, or ferry station platform area, including all light rail stations.

     "Transit village" means a community with a bus, train, light rail, or ferry station that has developed a plan to achieve its economic development and revitalization goals and has been designated by the New Jersey Department of Transportation as a transit village.

     “Urban transit hub sites” means project locations within a 1/2-mile radius surrounding the mid-point of a New Jersey Transit Corporation, Port Authority Transit Corporation or Port Authority Trans-Hudson Corporation rail, bus, or ferry station platform area, including all light rail stations, or adjacent to freight rail, in any municipality considered an "eligible municipality," as defined in section 2 of P.L.2007, c.346 (C.34:1B-208), as of December 31, 2012.

     “Vacant commercial building” means any commercial building or complex of commercial buildings having over 400,000 square feet of office, laboratory, or industrial space that is more than 70 percent unoccupied at the time of application to the authority or is negatively impacted by the approval of a “qualified business facility,” as defined pursuant to section 2 of P.L.2007, c.346 (C.34:1B-208).

     “Vacant health facility project” means a redevelopment project where a health facility currently exists and is considered vacant.  A health facility shall be considered vacant if at least 70 percent of that facility is not been open to the public or utilized to serve any patients at the time of application to the authority.

     “Workforce housing” means housing affordable according to federal Department of Housing and Urban Development or other recognized standards for home ownership and rental costs and occupied or reserved for occupancy by households with a gross household income equal to more than 50 percent but less than 120 percent of the median gross household income for households of the same size within the housing region in which the housing is located.

(cf: P.L.2011, c.89, s.6)

 

     15.  Section 6 of P.L.2009, c.90 (C.52:27D-489f) is amended to read as follows:

     6.    a. Up to the limits established in subsection b. of this section and in accordance with a redevelopment incentive grant agreement, beginning upon the receipt of occupancy permits for any portion of the project, or upon such other event evidencing project completion as set forth in the incentive grant agreement, the State Treasurer shall pay to the developer incremental State revenues directly realized from businesses operating on or at the site of the redevelopment project [premises] , including exempt businesses, from the following taxes: the Corporation Business Tax Act (1945), P.L.1945, c.162 (C.54:10A-1 et seq.), the tax imposed on marine insurance companies pursuant to R.S.54:16-1 et seq., the tax imposed on insurers generally, pursuant to P.L.1945, c.132 (C.54:18A-1 et seq.), the public utility franchise tax, public utilities gross receipts tax and public utility excise tax imposed on sewerage and water corporations pursuant to P.L.1940, c.5 (C.54:30A-49 et seq.), those tariffs and charges imposed by electric, natural gas, telecommunications, water and sewage utilities, and cable television companies under the jurisdiction of the New Jersey Board of Utilities, or comparable entity, related to societal benefits charges assessed pursuant to section 12 of P.L.1999, c.23 (C.48:3-60), any charges paid for compliance with the "Global Warming Response Act," P.L.2007, c.112 (C.26:2C-37 et seq.), transitional energy facility assessment unit taxes paid pursuant to section 67 of P.L.1997, c.162 (C.48:2-21.34), and the sales and use taxes on public utility and cable television services and commodities, the tax derived from net profits from business, a distributive share of partnership income, or a pro rata share of S corporation income under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., the tax derived from a business at the site of a redevelopment project that is required to collect the tax pursuant to the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.), the tax imposed pursuant to P.L.1966, c.30 (C.54:32B-1 et seq.) from the purchase of furniture, fixtures and equipment, or materials [used] for the remediation, the construction of new structures [, or the construction of new residences] or residences, or the renovation of same, at the site of a redevelopment project, the tax imposed pursuant to P.L.1966, c.30 (C.54:32B-1 et seq.) from purchases of goods and services used in the ongoing operation of a business at the site of the redevelopment project, the hotel and motel occupancy fee imposed pursuant to section 1 of P.L.2003, c.114 (C.54:32D-1), or the portion of the fee imposed pursuant to section 3 of P.L.1968, c.49 (C.46:15-7) derived from the sale of real property at the site of the redevelopment project and paid to the State Treasurer for use by the State, that is not credited to the "Shore Protection Fund" or the "Neighborhood Preservation Nonlapsing Revolving Fund" ("New Jersey Affordable Housing Trust Fund") pursuant to section 4 of P.L.1968, c.49 (C.46:15-8).

     b.    Up to an average of 75 percent of the projected annual incremental revenues, averaged over the length of time during which the reimbursement shall be granted, may be pledged towards the State portion of an incentive grant.  In the case of a qualified residential project, if the actual amount of incremental revenues so pledged towards the State portion of an incentive grant shall in any year of the incentive grant be inadequate to fully fund the amount of such State portion of the incentive grant for such year specified in the incentive grant agreement, the developer shall be awarded tax credits equal to the difference between the two amounts.  The value of all credits approved by the authority pursuant to subsection b. of this section shall not exceed $500,000,000, of which $150,000,000 of such credits shall be restricted to qualified residential projects located on urban transit hub sites that are commuter rail in nature or in deep poverty pockets, $100,000,000 of such credits shall be restricted to qualified residential projects in distressed municipalities outside of urban transit hub sites or deep poverty pockets, and $100,000,000 of such credits shall be restricted to qualified residential projects that are disaster recovery projects.  Not more than $33,000,000 of credits shall be awarded to any qualified residential project in a deep poverty pocket or distressed municipality and not more than $20,000,000 of credits shall be awarded to any other qualified residential project.  The developer of a qualified residential project seeking an award of credits towards the funding of its incentive grant shall submit an incentive grant application prior to July 1, 2015 and if approved shall submit a temporary certificate of occupancy for such project no later than July 28, 2018.  Credits shall be awarded by the authority on the basis of one or more competitive solicitations.  Credits shall not be awarded to more than four qualified residential projects in any distressed municipality or to more than two qualified residential projects in any other municipality falling within a qualifying economic redevelopment and growth grant incentive area.  Credits awarded to an developer pursuant to subsection b. of this section shall be utilized or transferred by the developer as if such credits had been awarded to the developer pursuant to P.L.2009, c.90 (C.52:27D-489a et al.) for qualified residential projects thereunder.  No portion of the revenues pledged pursuant to the “New Jersey Economic Opportunity Act of 2013,” P.L.    , c.     (C.   ) (pending before the Legislature as this bill) shall be subject to withholding or retainage for adjustment, in the event the developer or taxpayer waives its rights to claim a refund thereof.

     c.     All administrative costs associated with the incentive grant shall be assessed to the applicant and be retained by the State Treasurer from the annual incentive grant payments.

     d.    The incremental revenue for the revenues listed in subsection a. of this section shall be calculated as the difference between the amount collected in any fiscal year from any eligible revenue source included in the State redevelopment incentive grant agreement, less the revenue increment base for that eligible revenue.

     e.     The municipality is authorized to collect any and all information necessary to facilitate grants under this program and remit that information, as may be required from time to time, in order to assist in the calculation of incremental revenue.

(cf: P.L.2010, c.10, s.6)

 

     16.  Section 8 of P.L.2009, c.90 (C.52:27D-489h) is amended to read as follows:

     8.    a. (1) The [New Jersey Economic Development Authority] authority, in consultation with the State Treasurer, shall promulgate an incentive grant application form and procedure for the Economic Redevelopment and Growth Grant program.

     (2)   (a) The Local Finance Board, in consultation with the [New Jersey Economic Development Authority] authority, shall develop a minimum standard incentive grant application form for municipal Economic Redevelopment and Growth Grant programs.

     (b)   Through regulation, the [Economic Development Authority] authority shall establish standards for redevelopment projects seeking State or local incentive grants based on the green building manual prepared by the Commissioner of Community Affairs pursuant to section 1 of P.L.2007, c.132 (C.52:27D-130.6), regarding the use of renewable energy, energy-efficient technology, and non-renewable resources in order to reduce environmental degradation and encourage long-term cost reduction.

     b.    Within each incentive grant application, a developer shall certify information concerning:

     (1)   the status of control of the entire redevelopment project site;

     (2)   all required State and federal government permits that have been issued for the redevelopment project, or will be issued pending resolution of financing issues;

     (3)   local planning and zoning board approvals, as required, for the redevelopment project;

     (4)   estimates of the revenue increment base, the eligible revenues for the project, and the assumptions upon which those estimates are made.

     c.     (1) With regard to State tax revenues proposed to be pledged for an incentive grant the authority and the State Treasurer shall review the [redevelopment] project costs, 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 net benefits to the State including, without limitation, both direct and indirect economic benefits and non-financial community revitalization objectives, including but not limited to, the promotion of the use of public transportation in the case of the ancillary infrastructure project portion of any transit project.

     (2)   With regard to local incremental revenues proposed to be pledged for an incentive grant the authority and the Local Finance Board shall review the [redevelopment] project costs, and except with respect to an application by a municipal redeveloper, evaluate and validate the project financing gap projected by the developer, and conduct a local fiscal impact analysis to ensure that the overall public assistance provided to the project will result in net benefits to the municipality wherein the redevelopment project is located including, without limitation, both direct and indirect economic benefits and non-financial community revitalization objectives, including but not limited to, the promotion of the use of public transportation in the case of the ancillary infrastructure project portion of any transit project.

     (3)   The authority, State Treasurer, and Local Finance Board may act cooperatively to administer and review applications, and shall consult with the Office of State Planning on matters concerning State, regional, and local development and planning strategies.

     (4)   The costs of the aforementioned reviews shall be assessed to the applicant as an application fee.

(cf: P.L.2010, c.10, s.8)

 

     17.  Section 9 of P.L.2009, c.90 (C.52:27D-489i) is amended to read as follows:

     9.    a. The authority is authorized to enter into a redevelopment incentive grant agreement with a developer for any redevelopment project located within a qualifying economic redevelopment and growth grant incentive area that does not qualify as such area solely by virtue of being a transit village.

     b.    The decision whether or not to enter into a redevelopment incentive grant agreement is solely within the discretion of the authority and the State Treasurer, provided that they both agree to enter into an agreement.

     c.     The Chief Executive Officer of the [New Jersey Economic Development Authority] authority, in consultation with the State Treasurer shall negotiate the terms and conditions of any redevelopment incentive grant agreement on behalf of the State.

     d.    The redevelopment incentive grant agreement shall specify the maximum amount of project costs, the amount of the incentive grant to be awarded the developer, the frequency of payments, and the length of time, which shall not exceed 20 years, during which that reimbursement shall be granted.  Except for redevelopment incentive grant agreements with a municipal redeveloper or with the developer of a redevelopment project solely with respect to the cost of infrastructure improvements in the public right-of-way including any ancillary infrastructure project in the public right-of-way, in no event shall the combined amount of the reimbursements under redevelopment incentive grant agreements with the State or municipality exceed [20] 35 percent of the total project cost [of the project].  The authority shall be permitted to increase the amount of the reimbursement under the redevelopment incentive grant agreement with the State by up to five percent of the total project cost if the project is: (1) located in a distressed municipality which lacks adequate access to nutritious food in the judgment of the Chief Executive Officer of the authority and will include either a supermarket or grocery store with a minimum of 15,000 square feet of selling space devoted to the sale of consumable products or a prepared food establishment selling only nutritious ready to serve meals as a result of financial inducements to be given by the developer to the operator of such premises; (2) located in a distressed municipality which lacks adequate access to health care and health services in the judgment of the Chief Executive Officer of the authority and will include a health care and health services support center with a minimum of 10,000 square feet of space devoted to the provision of health care and health services as a result of financial inducements to be given by the developer to the operator of such premises; (3) located in a distressed municipality which has a business located therein that is required to respond to a request for proposal to fulfill a contract with the federal government as set forth in subsection d. of section 3 of P.L.2011, c.149 (C.34:1B-244); (4) a transit project; (5) a qualified residential project in which at least 10 percent of the residential units are constructed as and reserved for workforce housing; or (6) a disaster recovery project.  In addition, if there remains a project financing gap with respect to a developer’s redevelopment project after the maximum combined amounts provided in this paragraph are considered, then the authority shall be permitted to make a bonus award increasing the amount of the reimbursement under the redevelopment incentive grant agreement with the State by up to 15 percent of the total project cost.  In making a bonus award to a developer, the authority shall consider any factors that are found to contribute to the remaining project financing gap, such as whether the project: (a) is located in a distressed municipality and there exists a financial gap between the fair market commercial rental rates in the relevant marketplace and the commercial rental rates that are necessary to make the redevelopment project economically feasible; (b) is located on an environmentally contaminated site requiring remediation; (c) is a qualified residential project in which at least ten percent of the residential units are constructed as and reserved for low income housing; (d) would include energy efficiency or renewable energy features, measures or upgrades in excess of the green building requirements of the Economic Redevelopment and Growth Grant program which requirements shall be as set forth in the New Jersey Green Building Manual prepared by the Department of Community Affairs; or (e) is a qualified incubator facility.  For the purposes of calculating the total project cost [of all projects], the cost of [infrastructure improvements in the public right-of-way and] publicly owned facilities, other than infrastructure improvements including any ancillary infrastructure project, shall not be included.  The amount of the redevelopment incentive grant for a municipal redeveloper or for the developer of a redevelopment project solely with respect to the cost of infrastructure improvements in the public right-of-way including any ancillary infrastructure project in the public right-of-way may include the total cost of such infrastructure improvements and publicly owned facilities.

     e.     The authority and the State Treasurer may enter into a redevelopment incentive grant agreement only if they make a finding that the State revenues to be realized from the redevelopment project will be in excess of the amount necessary to reimburse the developer for its project financing gap.  This finding may be made by an estimation based upon the professional judgment of the Chief Executive Officer of the [New Jersey Economic Development Authority] authority and the State Treasurer.

     f.     In deciding whether or not to recommend entering into a redevelopment incentive grant agreement and in negotiating a redevelopment agreement with a developer, the Chief Executive Officer of the [New Jersey Economic Development Authority] authority shall consider the following factors:

     (1)   the economic feasibility of the redevelopment project;

     (2)   the extent of economic and related social distress in the municipality and the area to be affected by the redevelopment project or the level of site specific distress to include dilapidated conditions, brownfields designation, environmental contamination, pattern of vacancy, abandonment, or under utilization of the property, or other site conditions as determined by the authority;

     (3)   the degree to which the redevelopment project will advance State, regional, and local development and planning strategies;

     (4)   the likelihood that the redevelopment project shall, upon completion, be capable of generating new tax revenue in an amount in excess of the amount necessary to reimburse the developer for project costs incurred as provided in the redevelopment incentive grant agreement , it being expressly understood that any tax revenue generated by a redevelopment project that is a disaster recovery project shall be considered new tax revenue even if the same or more tax revenue was generated at or on the site prior to the disaster;

     (5)   the relationship of the redevelopment project to a comprehensive local development strategy, including other major projects undertaken within the municipality;

     (6)   the need of the redevelopment incentive grant agreement to the viability of the redevelopment project or the promotion of the use of public transportation; and

     (7)   the degree to which the redevelopment project enhances and promotes job creation and economic development or the promotion of the use of public transportation.

     g.     (1) A developer that has entered into a redevelopment incentive grant agreement with the authority and the State Treasurer pursuant to this section may, upon notice to and consent of the authority and the State Treasurer, pledge and assign as security or support for any loan or bond, any or all of its right, title and interest in and to such agreements and in the incentive grants payable thereunder, and the right to receive same, along with the rights and remedies provided to the developer under such agreement.  Any such assignment shall be an absolute assignment for all purposes, including the federal bankruptcy code.

     (2)   Any pledge of incentive grants made by the developer shall be valid and binding from the time when the pledge is made and filed in the records of the authority.  The incentive grants so pledged and thereafter received by the developer shall immediately be subject to the lien of the pledge without any physical delivery thereof or further act, and the lien of any pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the developer irrespective of whether the parties have notice thereof.  Neither the redevelopment incentive grant agreement nor any other instrument by which a pledge under this section is created need be filed or recorded except with the authority.

(cf: P.L.2010, c.10, s.9)

 

     18.  Section 11 of P.L.2009, c.90 (C.52:27D-489k) is amended to read as follows:

     11.  a. The governing body of a municipality is authorized to enter into a redevelopment incentive grant agreement with a developer, which shall not be effective until adopted by ordinance, for any redevelopment project located within a qualifying economic redevelopment and growth grant incentive area.

     b.    The redevelopment incentive grant agreement shall specify the maximum amount of project costs, the amount of the incentive grant to be awarded the developer, the frequency of payments, and the length of time, which shall not exceed 20 years, during which that reimbursement shall be granted.  Except for redevelopment incentive grants with a municipal redeveloper or with the developer of a redevelopment project solely with respect to the cost of infrastructure improvements in the public right-of-way including any ancillary infrastructure project in the public right-of-way, in no event shall the combined amount of the reimbursements under redevelopment incentive grant agreements with the State or municipality exceed [20] 35 percent of the total project cost [of the project] plus any bonus award of the State portion of such combined amount as set forth in subsection d. of section 9 of P.L.2009, c.90 (C.52:27D-489i).  For the purposes of calculating the total project cost [of all projects], the cost of [infrastructure improvements in the public right-of-way and] publicly owned facilities, other than infrastructure improvements including any ancillary infrastructure project, shall not be included.  The amount of the redevelopment incentive grant for a municipal redeveloper or for the developer of a redevelopment project solely with respect to the cost of infrastructure improvements in the public right-of-way including any ancillary infrastructure project in the public right-of-way may include the total cost of such infrastructure improvements and publicly owned facilities.

     c.     The municipality may enter into a redevelopment incentive grant agreement only if the chief financial officer of the municipality makes a finding that the incremental revenues to be realized from the redevelopment project will be in excess of the amount necessary to reimburse the developer for its project financing gap.  Such finding shall be based upon appropriate documentation and calculations supporting the decision.

     d.    Within a qualifying economic redevelopment and growth grant incentive area a municipality that has entered into a local redevelopment incentive grant agreement may pledge eligible revenues it is authorized to collect as follows:

     (1)   incremental payments in lieu of taxes, with respect to property located in the district, made pursuant to the "Five-Year Exemption and Abatement Law," P.L.1991, c.441 (C.40A:21-1 et seq.), or the "Long Term Tax Exemption Law," P.L.1991, c.431 (C.40A:20-1 et al.);

     (2)   incremental revenues collected from payroll taxes, with respect to business activities carried on within the area, pursuant to section 15 of P.L.1970, c.326 (C.40:48C-15);

     (3)   incremental revenue from lease payments made to the municipality, the developer, or the developer's successors with respect to property located in the area;

     (4)   incremental revenue collected from parking taxes derived from parking facilities located within the area pursuant to section 7 of P.L.1970, c.326 (C.40:48C-7);

     (5)   incremental admissions and sales taxes derived from the operation of a public facility within the area pursuant to section 1 of P.L.2007, c.302 (C.40:48G-1);

     (6)   (a) incremental sales and excise taxes which are derived from activities within the area and which are rebated to or retained by the municipality pursuant to the "New Jersey Urban Enterprise Zones Act," P.L.1983, c.303 (C.52:27H-60 et seq.) or any other law providing for such rebate or retention;

     (b)   within Planning Area 1 (Metropolitan) under the State Development and Redevelopment Plan adopted pursuant to the "State Planning Act," sections 1 through 12 of P.L.1985, c.398 (C.52:18A-196 et seq.), a municipality may impose the entire State sales tax on business activities within a redevelopment project located in an urban enterprise zone that would ordinarily be entitled to collect reduced rate revenues under section 21 of P.L.1983, c.303 (C.52:27H-80), and pledge the excess revenues to a local redevelopment incentive grant agreement;

     (7)   incremental parking revenue collected, pursuant to section 7 of P.L.1970, c.326 (C.40:48C-7), from public parking facilities built as part of a redevelopment project, except for public parking facilities owned by parking authorities pursuant to the "Parking Authority Law," P.L.1948, c.198 (C.40:11A-1 et seq.);

     (8)   incremental revenues collected, pursuant to section 3 of P.L.2003, c.114 (C.40:48F-1), P.L.1981, c.77 (C.40:48E-1 et seq.), or P.L.1947, c.71 (C.40:48-8.15 et seq.), from hotel and motel taxes;

     (9)   upon approval by the Local Finance Board, other incremental municipal revenues that may become available;

     (10) the property tax increment.

     The incremental revenue for the revenues listed in this subsection, when applicable, shall be calculated as the difference between the amount collected in any fiscal year from any eligible revenue source included in the local redevelopment incentive grant agreement, less the revenue increment base for that eligible revenue.

     e.     (1) In calculating the general tax rate of a municipality each year, the aggregate amount of the incremental ratable value over the property tax increment base in the redevelopment project area that is pledged as part of a redevelopment incentive grant agreement shall be excluded from the ratable base of a municipality.

     (2)   The amount of property tax increment not pledged toward a redevelopment incentive grant agreement shall be allocated pursuant to the normal tax rate distribution.

     The full incremental value of a project area shall be included in the value used for county and regional school tax apportionment until such time that the Director of the Division of Taxation in the Department of the Treasury can certify that property tax management systems are capable of handling the technical and legal requirements of treating parcels in areas of redevelopment as exempt from county and regional school apportionment.

     f.     In addition to the incremental revenues that may be pledged in subsection d. of this section, any amount of tax proceeds collected from the tax on the rental of motor vehicles pursuant to section 20 of P.L.2009, c.90 (C.40:48H-2), may be included in a redevelopment incentive grant agreement with a developer, regardless of whether or not the redevelopment project area is within or outside of the designated industrial zone from which the tax on the rental of motor vehicles is collected.

     g.     (1) A developer that has entered into a redevelopment incentive grant agreement with a municipality pursuant to this section may, upon notice to and consent of the municipality, pledge and assign as security or support for any loan or bond, any or all of its right, title and interest in and to such agreements and in the incentive grants payable thereunder, and the right to receive same, along with the rights and remedies provided to the developer under such agreement.  Any such assignment shall be an absolute assignment for all purposes, including the federal bankruptcy code.

     (2)   Any pledge of incentive grants made by the developer shall be valid and binding from the time when the pledge is made and filed in the office of the municipal clerk.  The incentive grants so pledged and thereafter received by the developer shall immediately be subject to the lien of the pledge without any physical delivery thereof or further act, and the lien of any pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the developer irrespective of whether the parties have notice thereof.  Neither the redevelopment incentive grant agreement nor any other instrument by which a pledge under this section is created need be filed or recorded except with the municipality.

(cf: P.L.2010, c.10, s.10)

 

     19.  This act shall take effect immediately, but shall remain inoperative for 60 days following the date of enactment.

 

 

STATEMENT

 

     This bill, designated as the “New Jersey Economic Opportunity Act of 2013,” expands two economic development incentive programs administered by the New Jersey Economic Development Authority (authority).  They are: (1) the Grow New Jersey Assistance Program that would be the State's premiere business attraction and retention incentive, sized and scaled to better match or surpass the financial incentive packages being offered by neighboring and other competing states without unnecessarily exceeding that goal, while also providing bonuses to drive development to smart growth areas in the State; and (2) the Economic Redevelopment and Growth Grant program that would be the State's sole redeveloper incentive, sized and scaled to more readily close project financing gaps and build public infrastructure critical to redevelopment projects while also providing bonuses to achieve public policy objectives, such as bringing fresh produce to urban “food deserts,” and rebuilding tourism destinations that were destroyed due to the effects of Hurricane Sandy.  In doing so, the bill phases out the provisions of the Business Retention and Relocation Assistance Grant Program, the Business Employment Incentive Program, and the Urban Transit Hub Tax Credit Program, all of which are also administered by the authority.