Bill Text: NJ S848 | 2018-2019 | Regular Session | Amended
Bill Title: Establishes innovation zone program to stimulate technology industry clusters around New Jersey's research institutions; allows certain high-technology businesses located in innovation zones to receive certain tax credits. *
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2018-05-14 - Referred to Senate Budget and Appropriations Committee [S848 Detail]
Download: New_Jersey-2018-S848-Amended.html
SENATE, No. 848
STATE OF NEW JERSEY
218th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2018 SESSION
Sponsored by:
Senator SHIRLEY K. TURNER
District 15 (Hunterdon and Mercer)
Senator NILSA CRUZ-PEREZ
District 5 (Camden and Gloucester)
SYNOPSIS
Establishes innovation zone program to stimulate technology industry clusters around New Jersey's research institutions; allows certain high-technology businesses located in innovation zones to receive certain tax credits.
CURRENT VERSION OF TEXT
As reported by the Senate Economic Growth Committee on May 14, 2018, with amendments.
An Act establishing an innovation zone program in the New Jersey Economic Development Authority, 1[amending and supplementing] and supplementing and amending1 P.L.1974, c.80 (C.34:1B-1 et seq.) 1[, and amending P.L.2011, c.149]1.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. (New section) a. The Legislature finds and declares that:
(1) New Jersey's historic legacy of innovation and invention has contributed to its national reputation as the home of numerous advanced technology industries;
(2) New Jersey must continue to meet the challenges and opportunities of the global marketplace by fostering the creation of high-quality jobs that will sustain a knowledge-based economy that thrives on innovation and entrepreneurship in order to bring advanced technologies to market;
(3) New Jersey should capitalize on its competitive advantage through economic development initiatives that support the State's world-class academic research universities, colleges, and science and technology industries;
(4) Relationships between industrial and academic research in the State must be strengthened to sustain New Jersey's economy and to propel it to an even higher level of performance;
(5) The State of New Jersey and the New Jersey Economic Development Authority (authority) have supported the research and development efforts of technology companies by developing financial assistance programs and laboratory space in commercialization centers underway in Camden, the New Brunswick area, and Newark;
(6) The authority has the ability to acquire land and develop shared infrastructure that is specialized to the needs of later stage businesses such as pilot scale production centers;
(7) Pursuant to Executive Order No. 128 of 2004, Governor McGreevey created three "innovation zones" to stimulate industry clusters around certain research universities and research hospitals (research institutions) ; and
(8) The Legislature 1has1 enacted 1[the "Economic Opportunity Act of 2013," P.L.2013, c.161 (C.52:27D-489p et al.) and other]1 laws that lead to job creation, innovation, and economic growth in the high-technology industry in this State.
b. The Legislature determines that it is in the public interest to establish three expanded innovation zones surrounding New Jersey's research institutions, to be located in Greater Camden, Greater New Brunswick, and Greater Newark and that:
(1) The goal of the innovation zones 1[program]1 is to attract high-technology businesses and research scientists to these defined areas, where proximity to research institutions will increase the collaborative research effort between the academic communities and New Jersey's high-technology industry, resulting in business and job growth;
(2) These innovation zones will serve to spur partnerships between New Jersey's research institutions, and industries, and will encourage the more rapid transfer of discoveries from New Jersey's laboratories to the marketplace;
(3) The creation of the innovation zones will require the focusing of resources on geographic areas where research clusters presently exist or have the potential to form because of the location of research institutions; and
(4) These geographic areas will also be made more attractive to businesses, entrepreneurs, and researchers by the availability of alternative housing opportunities, access to public transportation, and workforce development initiatives that provide customized training for all level of employees.
2. (New section) As used in P.L. , c. (C. ) (pending before the Legislature as this bill):
"Authority" means the New Jersey Economic Development Authority established pursuant to section 4 of P.L.1974, c.80 (C.34:1B-4).
1"Commitment period" means a period of time under an agreement under the "Innovation Zone Tax Credit" that is 1.5 times the eligibility period.
"Eligibility period" means the period in which a business may claim a tax credit under the "Innovation Zone Tax Credit," established pursuant to section 10 of P.L. , c. (C. ) (pending before the Legislature as this bill), beginning with the tax period in which the authority accepts certification of the business that it has met the employment requirements of the "Innovation Zone Tax Credit" and extending thereafter for a term of not more than 10 years, with the term to be determined solely at the discretion of the applicant.
"Full-time job" means a new full-time position located at a business facility in an innovation zone, which a high-technology business has filled with a full-time employee of that business.
"Full-time employee" means a person:
a. who is 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; and
b. who is provided, by the high-technology business, with employee health benefits under a health benefits plan authorized pursuant to State or federal law.
"Full-time employee" shall not include any person who works as an independent contractor or on a consulting basis for the high-technology business. Full-time employee shall also not include any person who, at the time of an application for an innovation zone tax credit, works in New Jersey for the high-technology business for consideration for at least 35 hours per week, or who renders any other standard of service generally accepted by custom or practice as full-time employment but who prior to the application was not provided, by the high-technology business, with employee health benefits under a health benefits plan authorized pursuant to State or federal law.1
"Greater Camden" me1ans Camden City, Egg Harbor Township, Galloway Township, Glassboro Borough, Harrison Township in Gloucester County, Mantua Township, and Stratford Borough.
"Greater New Brunswick" means East Windsor Township, Ewing Township, Franklin Township in Somerset County, Hopewell Township and Lawrence Township in Mercer County, New Brunswick City, North Brunswick Township, Piscataway Township, Plainsboro Township, Princeton Borough, South Brunswick Township, Trenton City, and West Windsor Township.
"Greater Newark" means Belleville Township, Clifton City, East Orange City, 1Hoboken City,1 Little Falls Township, Livingston Township, Montclair Township, Newark City, Nutley Township, and Orange City.
1"High-technology job" means a full-time job with a high-technology business which provides an annual salary of at least $40,000 and specializes within a field in a high-technology industry.
"High-technology business" means a business entity that is primarily engaged in a high-technology industry, which shall include, but is not limited to, the industries of advanced computing, advanced materials, biotechnology, electronic device technology, information technology, life sciences, medical device technology, mobile communications technology, or renewable energy technology.1
"Innovation zone" means a geographic area that surrounds a research institution, which has the potential of attracting a collaborative research effort between the academic communities, research institutions, and New Jersey's high-technology industry, resulting in business and job growth.
"Research institution" means an institution of higher education, as defined in section 2 of P.L.1977, c.123 (C.18A:68-11.2), a research hospital, or any combination thereof.
"Secretary" means the Secretary of Higher Education.
3. (New section) The
authority shall establish an "innovation zone" program within the
authority which shall consist of three innovation zones, with each zone
surrounding all research institutions located in Greater Camden, Greater New
Brunswick, and Greater Newark.
4. (New section) An innovation zone may consist of one or more subzones established by the authority where an innovation zone consists of geographic areas or municipalities that are non-contiguous so long as a subzone surrounds a research institution. The executive director of the authority shall recommend the precise geographic boundaries of the innovation zones and subzones, which shall surround all research institutions within Greater Camden, Greater New Brunswick, and Greater Newark, to the board members of the authority, who shall have final approval to the geographic boundaries of the innovation zones and subzones. An innovation zone or subzone's geographic boundaries shall be established in order to accommodate the targeting of financial resources to those geographic areas surrounding a research institution, as provided pursuant to section 5 of P.L. , c. (C. ) (pending before the Legislature as this bill).
5. (New section) The authority, with the approval of the State Treasurer, shall modify its existing business assistance programs, if permissible by law, to give bonuses or other enhanced incentives to high-technology businesses that locate in an innovation zone, so long as the business location is within the surroundings of a research institution, as determined by the authority in the designation of the innovation zone.
6. (New section) The authority and the secretary shall modify their programs, if permissible by law, to promote and support networks and collaboration between high-technology businesses and research institutions in the innovation zones, to increase federal funding to research institutions in areas of strategic importance to New Jersey's high-technology industry, to promote the transfer of technology and commercialization of new ideas in the innovation zones, and to further develop support for high-technology companies in the innovation zones including, but not limited to, business incubation and grant writing assistance services.
7. (New section) The authority shall work cooperatively with other State departments, agencies, boards, commissions, and authorities to explore and implement opportunities to direct resources to those areas within the innovation zones that surround a research institution, as determined by the authority pursuant to section 5 of P.L. , c. (C. ) (pending before the Legislature as this bill) and may provide technology, financial, and workforce development opportunities, infrastructure, and housing elsewhere within the innovation zones. With the assistance of these State entities, the executive director of the authority and the secretary may recommend potential future innovation zones or subzones surrounding other research institutions to the board members of the authority to enhance cluster-based economic development strategies anchored by research institutions.
8. (New section) a. The authority and the secretary are authorized to call upon any department, authority, commission, board, office, division, or agency of the State to provide any information, resources, or other assistance deemed necessary to discharge their responsibilities under P.L. , c. (C. ) (pending before the Legislature as this bill), including, but not be limited to: the Department of Treasury for assistance with high-technology business funding assistance programs; the Department of Labor and Workforce Development for assistance in developing workforce development strategies; the Department of Transportation and the New Jersey Transit Corporation for assistance in enhancing public transportation networks and infrastructure; the New Jersey Business Action Center to assist in business attraction efforts and advising on smart growth development strategies; and the Department of Community Affairs for assistance in expanding housing opportunities and the coordination with the Urban Enterprise Zone program.
b. Each department, authority, commission, board, office, division, and agency of the State is hereby required to cooperate with the authority and the secretary to furnish the authority and commission with any information, personnel, and assistance as is necessary to accomplish the purposes of P.L. , c. (C. ) (pending before the Legislature as this bill).
9. (New section) The authority shall establish an advisory committee for each innovation zone whose membership shall selected by the executive director of the authority. The advisory committee shall consist of local technology business leaders and representatives from the research community. Each advisory committee shall meet quarterly to advise the authority and the secretary with respect to the functioning of the innovation zones and the needs of the local high-technology industry. Members of the advisory committee shall serve without compensation, but may be reimbursed for their actual and necessary expenses incurred in the performance of their duties pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill) within the limits of funds appropriated or otherwise made available by the authority to the advisory committee for its purposes.
110. (New section) a. The authority may provide a tax credit, as described in this section, as an incentive to a high-technology business that is located in an innovation zone, established by the authority pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill). The authority shall administer the tax credit. The purpose of the tax credit is to encourage job creation in high-technology industries within innovation zones in this State. To implement this purpose, the authority may provide tax credits to businesses within a high-technology industry for an eligibility period not to exceed 10 years. To be eligible for any tax credits pursuant to 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 the business will create new, high-technology jobs in an amount equal to or greater than those specified the application and maintain those jobs in an innovation zone for a specified commitment period.
b. The authority may enter into an agreement with a high-technology business to award tax credits to the business if the business creates at least 10 new, high-technology jobs for a specified commitment period at a business facility that is located within an innovation zone established pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill).
c. The base amount of the tax credit awarded pursuant to this section for each new, high-technology job shall be $4,000 per year for the eligibility period.
d. In addition to the base amount of the tax credit described in subsection b. of this section, the amount of the tax credit to be awarded for each new, high-technology job shall be increased if the job is filled by an employee who received an academic degree from an institution of higher education, as that term is defined in section 2 of P.L.1977, c.123 (C:18A:68-11.2), within the 12 months immediately preceding the date that the employee commenced employment with the business. The increase under this subsection above the base amount shall be $1,000 per year, for a period of not more five years for each employee described in this section.
e. A tax credit issued pursuant to this section may be applied against tax liability as prescribed by the tax credit agreement.
f. (1) The authority shall not award tax credits under this section in an amount that exceeds a total of $3,000,000 per year in aggregate for all innovation zones, or in an amount that exceeds a total of $1,000,000 per year to businesses within any one of innovation zone established pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill).
(2) The authority shall not award tax credits under this section to an individual business in an amount that exceeds $100,000 per year.
g. A high-technology business seeking to receive tax credits pursuant to this section shall have seven years from the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) to enter into a tax credit agreement with the authority.
h. As determined by the authority, a business which is awarded a grant of tax credits under this section shall submit annually, no later than March 1st of each year, commencing in the year in which the grant of tax credits is issued and for the remainder of the commitment period, a certificate of compliance that indicates that the business continues to maintain the number of new full-time jobs as specified in the tax credit agreement. Upon receipt and review thereof during the tax credit term, the authority shall issue a certificate of compliance indicating the amount of tax credits that the business may apply against liability pursuant to this section. Any reduction in the number of retained full-time jobs below the number prescribed under the terms of the tax credit agreement shall proportionately reduce the amount of tax credits the business may apply against liability in that tax period and the credits that may no longer be applied for that tax period shall be forfeited. However, if in any tax period, the number of new, high-technology jobs drops below the minimum number of new, high-technology jobs indicated in subsection b. of this section pursuant to which the tax credit agreement was executed, such that the high-technology business would no longer be eligible to apply the tax credits for the number of years for which it was approved, then the authority shall reduce the amount of tax credits the business may apply against liability and the number of years in which the business may apply the tax credits. The grant shall be subject to recapture provisions pursuant to the tax credit agreement.
i. The authority is authorized to pursue, and shall adopt rules in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) for, the recapture of all, or a portion of, the grant of tax credits, based on criteria established by the authority pursuant to regulation or under the terms of the tax credit agreement. The rules shall allow for the authority to pursue the full or partial recapture or, in its discretion, to notify the Director of the Division of Taxation in the Department of the Treasury, who shall issue a recapture assessment which shall be based upon the proportionate value of the grant of tax credits that corresponds to the amount and period of noncompliance, in which case, the recapture of funds shall be subject to the State Uniform Tax Procedure Law, R.S.54:48-1 et seq. Recaptured funds shall be deposited in the General Fund of the State.
j. The authority shall submit a written report to the Governor and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), to the Legislature by January 1 of the seventh year following the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), evaluating the effectiveness of the tax credit established pursuant to this section at fostering growth within high-technology industries in innovation zones and in increasing the employment rates of university and college graduates.1
1[10.] 11.1 Section 5 of P.L.1974, c.80 (C.34:1B-5) is amended to read as follows:
5. The authority shall have the following powers:
a. To adopt bylaws for the regulation of its affairs and the conduct of its business;
b. To adopt and have a seal and to alter the same at pleasure;
c. To sue and be sued;
d. To acquire in the name of the authority by purchase or otherwise, on [such] terms and conditions and [such] manner as [it] the authority may deem proper, or by the exercise of the power of eminent domain in the manner provided by the "Eminent Domain Act of 1971," P.L.1971, c.361 (C.20:3-1 et seq.), any lands or interests therein or other property which [it] the authority may determine is reasonably necessary for any project; provided, however, that the authority, in connection with any project, shall not take by exercise of the power of eminent domain any real property except upon consent thereto given by resolution of the governing body of the municipality in which [such] the real property is located; and provided further that the authority shall be limited in its exercise of the power of eminent domain in connection with any project in qualifying municipalities, as defined under the provisions of P.L.1978, c.14 (C.52:27D-178 et seq.), or to municipalities which had a population, according to the latest federal decennial census, in excess of 10,000;
e. To enter into contracts with a person upon [such] terms and conditions as the authority shall determine to be reasonable, including, but not limited to, reimbursement for the planning, designing, financing, construction, reconstruction, improvement, equipping, furnishing, operation, and maintenance of the project and to pay or compromise any claims arising therefrom;
f. To establish and maintain reserve and insurance funds with respect to the financing of the project or the school facilities project and any project financed pursuant to the "Municipal Rehabilitation and Economic Recovery Act," P.L.2002, c.43 (C.52:27BBB-1 et al.);
g. To sell, convey, or lease to any person all or any portion of a project for [such] consideration and upon [such] terms as the authority may determine to be reasonable;
h. To mortgage, pledge, or assign or otherwise encumber all or any portion of a project, or revenues, whenever [it] the authority shall find [such] that action to be in furtherance of the purposes of [this act] P.L.1974, c.80 (C.34:1B-1 et seq.), P.L.2000, c.72 (C.18A:7G-1 et al.), the "Municipal Rehabilitation and Economic Recovery Act," P.L.2002, c.43 (C.52:27BBB-1 et al.), P.L.2007, c.137 (C.52:18A-235 et al.), and sections 3 through 18 of P.L.2009, c.90 (C.52:27D-489c et al.);
i. To grant options to purchase or renew a lease for any of [its] the authority's projects on such terms as the authority may determine to be reasonable;
j. To contract for and to accept any gifts or grants or loans of funds or property or financial or other aid in any form from the United States of America or any agency or instrumentality thereof, or from the State or any agency, instrumentality, or political subdivision thereof, or from any other source and to comply, subject to the provisions of P.L.1974, c.80 (C.34:1B-1 et seq.), section 6 of P.L.2001, c.401 (C.34:1B-4.1), P.L.2000, c.72 (C.18A:7G-1 et al.), the "Municipal Rehabilitation and Economic Recovery Act," P.L.2002, c.43 (C.52:27BBB-1 et al.), and P.L.2007, c.137 (C.52:18A-235 et al.), with the terms and conditions thereof;
k. In connection with any action undertaken by the authority in the performance of its duties and any application for assistance or commitments therefor and modifications thereof, to require and collect [such] fees and charges as the authority shall determine to be reasonable, including, but not limited to, fees and charges for the authority's administrative, organizational, insurance, operating, legal, and other expenses;
l. To adopt, amend, and repeal regulations to carry out the provisions of P.L.1974, c.80 (C.34:1B-1 et seq.), section 6 of P.L.2001, c.401 (C.34:1B-4.1), P.L.2000, c.72 (C.18A:7G-1 et al.), the "Municipal Rehabilitation and Economic Recovery Act," P.L.2002, c.43 (C.52:27BBB-1 et al.), and P.L.2007, c.137 (C.52:18A-235 et al.);
m. To acquire, purchase, manage and operate, hold, and dispose of real and personal property or interests therein, take assignments of rentals and leases, and make and enter into all contracts, leases, agreements, and arrangements necessary or incidental to the performance of [its] the authority's duties;
n. To purchase, acquire, and take assignments of notes, mortgages, and other forms of security and evidences of indebtedness;
o. To purchase, acquire, attach, seize, accept, or take title to any project or school facilities project by conveyance or by foreclosure, and sell, lease, manage, or operate any project or school facilities project for a use specified in [this act] P.L.1974, c.80 (C.34:1B-1 et seq.), P.L.2000, c.72 (C.18A:7G-1 et al.), the "Municipal Rehabilitation and Economic Recovery Act," P.L.2002, c.43 (C.52:27BBB-1 et al.), P.L.2007, c.137 (C.52:18A-235 et al.), and sections 3 through 18 of P.L.2009, c.90 (C.52:27D-489c et al.);
p. To borrow money and to issue bonds of the authority and to provide for the rights of the holders thereof, as provided in P.L.1974, c.80 (C.34:1B-1 et seq.), section 6 of P.L.2001, c.401 (C.34:1B-4.1), P.L.2000, c.72 (C.18A:7G-1 et al.), the "Municipal Rehabilitation and Economic Recovery Act," P.L.2002, c.43 (C.52:27BBB-1 et al.), P.L.2007, c.137 (C.52:18A-235 et al.), and sections 3 through 18 of P.L.2009, c.90 (C.52:27D-489c et al.);
q. To extend credit or make loans to any person for the planning, designing, acquiring, constructing, reconstructing, improving, equipping, and furnishing of a project or school facilities project, which credits or loans may be secured by loan and security agreements, mortgages, leases, and any other instruments, upon [such] terms and conditions as the authority shall deem reasonable, including provision for the establishment and maintenance of reserve and insurance funds, and to require the inclusion in any mortgage, lease, contract, loan and security agreement, or other instrument, of [such] provisions for the construction, use, operation and maintenance, and financing of a project or school facilities project as the authority may deem necessary or desirable;
r. To guarantee up to [90%] 90 percent of the amount of a loan to a person, if the proceeds of the loan are to be applied to the purchase and installation, in a building devoted to industrial or commercial purposes, or in an office building, of an energy improvement system;
s. To employ consulting engineers, architects, attorneys, real estate counselors, appraisers, and [such] other consultants and employees as may be required in the judgment of the redevelopment utility to carry out the purposes of P.L.1974, c.80 (C.34:1B-1 et seq.), section 6 of P.L.2001, c.401 (C.34:1B-4.1), P.L.2000, c.72 (C.18A:7G-1 et al.), the "Municipal Rehabilitation and Economic Recovery Act," P.L.2002, c.43 (C.52:27BBB-1 et al.), P.L.2007, c.137 (C.52:18A-235 et al.), and sections 3 through 18 of P.L.2009, c.90 (C.52:27D-489c et al.), and to fix and pay their compensation from funds available to the redevelopment utility therefor, all without regard to the provisions of Title 11A of the New Jersey Statutes;
t. To do and perform any acts and things authorized by P.L.1974, c.80 (C.34:1B-1 et seq.), section 6 of P.L.2001, c.401 (C.34:1B-4.1), P.L.2000, c.72 (C.18A:7G-1 et al.), the "Municipal Rehabilitation and Economic Recovery Act," P.L.2002, c.43 (C.52:27BBB-1 et al.), P.L.2007, c.137 (C.52:18A-235 et al.), and sections 3 through 18 of P.L.2009, c.90 (C.52:27D-489c et al.), under, through or by means of its own officers, agents, and employees, or by contract with any person;
u. To procure insurance against any losses in connection with [its] authority property, operations, or assets in [such] amounts and from [such] insurers as [it] the authority deems desirable;
v. To do any and all things necessary or convenient to carry out [its] the authority's purposes and exercise the powers given and granted in P.L.1974, c.80 (C.34:1B-1 et seq.), section 6 of P.L.2001, c.401 (C.34:1B-4.1), P.L.2000, c.72 (C.18A:7G-1 et al.), the "Municipal Rehabilitation and Economic Recovery Act," P.L.2002, c.43 (C.52:27BBB-1 et al.), P.L.2007, c.137 (C.52:18A-235 et al.), and sections 3 through 18 of P.L.2009, c.90 (C.52:27D-489c et al.);
w. To construct, reconstruct, rehabilitate, improve, alter, equip, maintain or repair, or provide for the construction, reconstruction, improvement, alteration, equipping or maintenance, or repair of any development property and lot, award and enter into construction contracts, purchase orders, and other contracts with respect thereto, upon [such] terms and conditions as the authority shall determine to be reasonable, including, but not limited to, reimbursement for the planning, designing, financing, construction, reconstruction, improvement, equipping, furnishing, operation, and maintenance of [any such] the development property and the settlement of any claims arising therefrom, and the establishment and maintenance of reserve funds with respect to the financing of [such] the development property;
x. When authorized by the governing body of a municipality exercising jurisdiction over an urban growth zone, to construct, cause to be constructed, or to provide financial assistance to projects in an urban growth zone which shall be exempt from the terms and requirements of the land use ordinances and regulations, including, but not limited to, the master plan and zoning ordinances, of [such] the municipality;
y. To enter into business employment incentive agreements as provided in the "Business Employment Incentive Program Act," P.L.1996, c.26 (C.34:1B-124 et al.);
z. To enter into agreements or contracts, execute instruments, and do and perform all acts or things necessary, convenient, or desirable for the purposes of the redevelopment utility to carry out any power expressly provided pursuant to P.L.1974, c.80 (C.34:1B-1 et seq.), P.L.2000, c.72 (C.18A:7G-1 et al.), and P.L.2007, c.137 (C.52:18A-235 et al.), including, but not limited to, entering into contracts with the State Treasurer, the Commissioner of Education, districts, the New Jersey Schools Development Authority, and any other entity which may be required in order to carry out the provisions of P.L.2000, c.72 (C.18A:7G-1 et al.), P.L.2007, c.137 (C.52:18A-235 et al.), and sections 3 through 18 of P.L.2009, c.90 (C.52:27D-489c et al.);
aa. (Deleted by amendment, P.L.2007, c.137);
bb. To make and contract to make loans to local units to finance the cost of school facilities projects and to acquire and contract to acquire bonds, notes, or other obligations issued or to be issued by local units to evidence the loans, all in accordance with the provisions of P.L.2000, c.72 (C.18A:7G-1 et al.), and P.L.2007, c.137 (C.52:18A-235 et al.);
cc. Subject to any agreement with holders of [its] authority bonds issued to finance a project or school facilities project, to obtain as security, or to provide liquidity for payment of all or any part of the principal of and interest and premium on the bonds of the authority or for the purchase upon tender or otherwise of the bonds, lines of credit, letters of credit, reimbursement agreements, interest rate exchange agreements, currency exchange agreements, interest rate floors or caps, options, puts, or calls to hedge payment, currency, rate, spread, or similar exposure or similar agreements, float agreements, forward agreements, insurance contract, surety bond, commitment to purchase or sell bonds, purchase, or sale agreement, or commitments or other contracts or agreements, and other security agreements or instruments in any amounts and upon any terms as the authority may determine and pay any fees and expenses required in connection therewith;
dd. To charge to and collect from local units, the State, and any other person, any fees and charges in connection with the authority's actions undertaken with respect to school facilities projects, including, but not limited to, fees and charges for the authority's administrative, organization, insurance, operating, and other expenses incident to the financing of school facilities projects;
ee. To make loans to refinance solid waste facility bonds through the issuance of bonds or other obligations and the execution of any agreements with counties or public authorities to effect the refunding or rescheduling of solid waste facility bonds, or otherwise provide for the payment of all or a portion of any series of solid waste facility bonds. Any county or public authority refunding or rescheduling its solid waste facility bonds pursuant to this subsection shall provide for the payment of not less than fifty percent of the aggregate debt service for the refunded or rescheduled debt of the particular county or public authority for the duration of the loan; except that, whenever the solid waste facility bonds to be refinanced were issued by a public authority and the county solid waste facility was utilized as a regional county solid waste facility, as designated in the respective adopted district solid waste management plans of the participating counties as approved by the department prior to November 10, 1997, and the utilization of the facility was established pursuant to tonnage obligations set forth in their respective interdistrict agreements, the public authority refunding or rescheduling its solid waste facility bonds, pursuant to this subsection, shall provide for the payment of a percentage of the aggregate debt service for the refunded or rescheduled debt of the public authority not to exceed the percentage of the specified tonnage obligation of the host county for the duration of the loan. Whenever the solid waste facility bonds are the obligation of a public authority, the relevant county shall execute a deficiency agreement with the authority, which shall provide that the county pledges to cover any shortfall and to pay deficiencies in scheduled repayment obligations of the public authority. All costs associated with the issuance of bonds pursuant to this subsection may be paid by the authority from the proceeds of these bonds. Any county or public authority is hereby authorized to enter into any agreement with the authority necessary, desirable, or convenient to effectuate the provisions of this subsection.
The authority shall not issue bonds or other obligations to effect the refunding or rescheduling of solid waste facility bonds after December 31, 2002. The authority may refund its own bonds issued for the purposes herein at any time;
ff. To pool loans for any local government units that are refunding bonds and do and perform any and all acts or things necessary, convenient, or desirable for the purpose of the authority to achieve more favorable interest rates and terms for those local governmental units;
gg. To finance projects approved by the board, provide staff support to the board, oversee and monitor progress on the part of the board in carrying out the revitalization, economic development, and restoration projects authorized pursuant to the "Municipal Rehabilitation and Economic Recovery Act," P.L.2002, c.43 (C.52:27BBB-1 et al.) and otherwise fulfilling its responsibilities pursuant thereto;
hh. To offer financial assistance to qualified film production companies as provided in the "New Jersey Film Production Assistance Act," P.L.2003, c.182 (C.34:1B-178 et al.); [and]
ii. To finance or develop private or public parking facilities or structures, which may include the use of solar photovoltaic equipment, in municipalities qualified to receive State aid pursuant to the provisions of P.L.1978, c.14 (C.52:27D-178 et seq.) and municipalities that contain areas designated pursuant to P.L.1985, c.398 (C.52:18A-196 et al.) as Planning Area 1 (Metropolitan), Planning Area 2 (Suburban), or a town center, and to provide appropriate assistance, including but not limited to, extensions of credit, loans, and guarantees, to municipalities qualified to receive State aid pursuant to the provisions of P.L.1978, c.14 (C.52:27D-178 et seq.) and municipalities that contain areas 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 town center, and their agencies and instrumentalities or to private entities whose projects are located in those municipalities, in order to facilitate the financing and development of parking facilities or structures in such municipalities. The authority may serve as the issuing agent of bonds to finance the undertaking of a project for the purposes of this subsection; and
jj. To establish and maintain an "innovation zone program" pursuant to sections 1 through 9 of P.L. , c. (C. ) (pending before the Legislature as this bill) for the purposes set forth therein.
(cf: P.L.2010, c.28, s.3)
1[11. Section 5 of P.L.2011, c.149 (C.34:1B-246) is amended to read as follows:
5. a. The total amount of the tax credit for an eligible business for each new or retained full-time job shall be as set forth in subsections b. through f. of this section. The total tax credit amount shall be calculated and credited to the business annually for each year of the eligibility period. Notwithstanding any other provisions of P.L.2013, c.161 (C.52:27D-489p et al.), a business may assign its ability to apply for the tax credit under this subsection to a non-profit organization with a mission dedicated to attracting investment and completing development and redevelopment projects in a Garden State Growth Zone. The non-profit organization or organization operating a qualified incubator facility may make an application on behalf of a business which meets the requirements for the tax credit, or a group of non-qualifying businesses or positions, located at a qualified business facility, that shall be considered a unified project for the purposes of the incentives provided under this section. For any project located in a Garden State Growth Zone that qualifies under the "Municipal Rehabilitation and Economic Recovery Act," P.L.2002, c.43 (C.52:27BBB-1 et al.), or any project located in a Garden State Growth Zone which contains a Tourism District as established pursuant to section 5 of P.L.2011, c.18 (C.5:12-219) and regulated by the Casino Reinvestment Development Authority, and which will include a retail facility of at least 150,000 square feet, of which at least 50 percent will be occupied by either a full-service supermarket or grocery store, a business may assign its ability to apply for the tax credit under this subsection to the developer of the facility. The developer may make an application on behalf of the business which meets the requirements for the tax credit, or a group of non-qualifying businesses located at the business facility, that shall be considered a unified project for the purposes of the incentives provided under this section, and the developer may apply for tax credits available based on the number of jobs provided by the business or businesses and the total capital investment of the business or businesses and the developer.
b. The base amount of the tax credit for each new or retained full-time job shall be as follows:
(1) for a qualified business facility located within an urban transit hub municipality [or], a Garden State Growth Zone, an innovation zone established pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill) and located in Greater Camden as defined in P.L. , c. (C. ) (pending before the Legislature as this bill), or is a mega project, $5,000 per year;
(2) for a qualified business facility located within a distressed municipality but not qualifying under paragraph (1) of this subsection, $4,000 per year;
(3) for a project in a priority area, $3,000 per year; and
(4) for a project in other eligible areas, $500 per year.
c. In addition to the base amount of the tax credit, the amount of the tax credit to be awarded for each new or retained full-time job shall be increased if the qualified business facility meets any of the following priority criteria or other additional or replacement criteria determined by the authority from time to time in response to evolving economic or market conditions:
(1) for a qualified business facility 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 qualified business facility located in a qualified incubator facility, an increase of $500 per year;
(3) for a qualified business facility located in a mixed-use development that incorporates sufficient moderate income 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 qualified business facility located within a transit oriented development, an increase of $2,000 per year;
(5) for a qualified business facility, other than a mega project, at which the capital investment in industrial premises for industrial use by the business is in excess of the minimum capital investment required for eligibility pursuant to subsection b. of section 3 of P.L.2011, c.149 (C.34:1B-244), an increase of $1,000 per year for each additional amount of investment that exceeds the minimum amount required for eligibility by 20 percent, with a maximum increase of $3,000 per year;
(6) for a business with new full-time jobs and retained full-time jobs at the project with an average salary in excess of the existing average salary for the county in which the project is located, or, in the case of a project in a Garden State Growth Zone, a business that employs full-time positions at the project with an average salary in excess of the average salary for the Garden State Growth Zone, 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 or Garden State Growth Zone average salary, with a maximum increase of $1,500 per year;
(7) for a business with large numbers of new full-time jobs and retained full-time jobs during the commitment period, the increases shall be in accordance with the following schedule:
(a) if the number of new full-time jobs and retained full-time jobs is between 251 and 400, $500 per year;
(b) if the number of new full-time jobs and retained full-time jobs is between 401 and 600, $750 per year;
(c) if the number of new full-time jobs and retained full-time jobs is between 601 and 800, $1000 per year;
(d) if the number of new full-time jobs and retained full-time jobs is between 801 and 1,000, $1,250 per year;
(e) if the number of new full-time jobs and retained full-time jobs is in excess of 1,000, $1,500 per year;
(8) for a business in a targeted industry, an increase of $500 per year;
(9) for a qualified business facility exceeding the Leadership in Energy and Environmental Design's "Silver" rating standards or completes substantial environmental remediation, an additional increase of $250 per year;
(10) for a mega project or a project located within a Garden State Growth Zone at which the capital investment in industrial premises for industrial use by the business is in excess of the minimum capital investment required for eligibility pursuant to subsection b. of section 3 of P.L.2011, c.149 (C.34:1B-244), an increase of $1,000 per year for each additional amount of investment that exceeds the minimum amount by 20 percent, with a maximum increase of $5,000 per year;
(11) for a project in which a business retains at least 400 jobs and is located within the municipality in which it was located immediately prior to the filing of the application hereunder and is the United States headquarters of an automobile manufacturer, an increase of $1,500 per year;
(12) for a project located in a municipality in Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Ocean, and Salem counties with a 2007 Municipality Revitalization Index greater than 465, an increase of $1,000 per year;
(13) for a project located within a half-mile of any light rail station constructed after the effective date of P.L.2013, c.161 (C.52:27D-489p et al.), an increase of $1,000 per year;
(14) for a marine terminal project in a municipality located outside the Garden State Growth Zone, but within the geographical boundaries of the South Jersey Port District, an increase of $1,500 per year;
(15) for a project located within 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 which is located within a quarter mile of at least one United States Highway and at least two New Jersey State Highways, an increase of $1,500 per year;
(16) for a project that generates solar energy on site for use within the project of an amount that equals at least 50 percent of the project's electric supply service needs, an increase of $250 per year; and
(17) for a qualified business facility that includes a vacant commercial building having over 1,000,000 square feet of office or laboratory space available for occupancy for a period of over one year, an increase of $1,000 per year.
d. The gross amount of the tax credit for an eligible business for each new or retained full-time job shall be the sum of the base amount as set forth pursuant to subsection b. of this section and the various additional bonus amounts for which the business is eligible pursuant to subsection c. of this section, subject to the following limitations:
(1) for a mega project , an innovation zone established pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill) and located in Greater Camden as defined in P.L. , c. (C. ) (pending before the Legislature as this bill), or a project in a Garden State Growth Zone, the gross amount for each new or retained full-time job shall not exceed $15,000 per year;
(2) for a qualified business facility located within an urban transit hub municipality, the gross amount for each new or retained full-time job shall not exceed $12,000 per year;
(3) for a qualified business facility in a distressed municipality the gross amount for each new or retained full-time job shall not exceed $11,000 per year;
(4) for a qualified business facility in other priority areas, the gross amount for each new or retained full-time job shall not exceed $10,500 per year;
(5) for a qualified business facility in other eligible areas, the gross amount for each new or retained full-time job shall not exceed $6,000 per year; and
(6) for a disaster recovery project, the gross amount for each new or retained full-time job shall not exceed $2,000 per year.
Notwithstanding anything to the contrary set forth herein and in the provisions of subsections a. through f. of this section, but subject to the provisions of paragraph (1) of subsection f. of this section, for a project located within a Garden State Growth Zone which qualifies for the "Municipal Rehabilitation and Economic Recovery Act," P.L.2002, c.43 (C.52:27BBB-1 et al.), which creates 35 or more full-time jobs new to the municipality, the total tax credit shall be:
(a) for a project which creates 35 or more full-time jobs new to the municipality and makes a capital investment of at least $5,000,000, the total tax credit amount per full-time job shall be the greater of: (i) the total tax credit amount for a qualifying project in a Garden State Growth Zone as calculated pursuant to subsections a. through f. of this section; or (ii) the total capital investment of the project divided by the total number of full-time jobs at that project but not greater than $2,000,000 per year over the grant term of ten years;
(b) for a project which creates 70 or more full-time jobs new to the municipality and makes a capital investment of at least $10,000,000, the total tax credit amount per full-time job shall be the greater of: (i) the total tax credit amount for a qualifying project in a Garden State Growth Zone as calculated pursuant to subsections a. through f. of this section; or (ii) the total capital investment of the project divided by the total number of full-time jobs at that project but not greater than $3,000,000 per year over the grant term of ten years;
(c) for a project which creates 100 or more full-time jobs new to the municipality and makes a capital investment of at least $15,000,000, the total tax credit amount per full-time job shall be the greater of: (i) the total tax credit amount for a qualifying project in a Garden State Growth Zone as calculated pursuant to subsections a. through f. of this section; or (ii) the total capital investment of the project divided by the total number of full-time jobs at that project but not greater than $4,000,000 per year over the grant term of ten years;
(d) for a project which creates 150 or more full-time jobs new to the municipality and makes a capital investment of at least $20,000,000, the total tax credit amount per full-time job shall be the greater of: (i) the total tax credit amount for a qualifying project in a Garden State Growth Zone as calculated pursuant to subsections a. through f. of this section; or (ii) the total capital investment of the project divided by the total number of full-time jobs at that project but not greater than $5,000,000 per year over the grant term of ten years; or
(e) for a project which creates 250 or more full-time jobs new to the municipality and makes a capital investment of at least $30,000,000, the total tax credit amount per full-time job shall be the greater of: (i) the total tax credit amount for a qualifying project in a Garden State Growth Zone as calculated pursuant to subsections a. through f. of this section; or (ii) the total capital investment of the project divided by the total number of full-time jobs as defined herein at that project divided by the ten-year grant term.
e. After the determination by the authority of the gross amount of tax credits for which a business is eligible pursuant to subsection d. of this section, the final total tax credit amount shall be calculated as follows: (1) for each new full-time job, the business shall be allowed tax credits equaling 100 percent of the gross amount of tax credits for each new full-time job; and (2) for each retained full-time job, the business shall be allowed tax credits equaling the lesser of 50 percent of the gross amount of tax credits for each retained full-time job, or one-tenth of the capital investment divided by the number of retained and new full-time jobs per year over the grant term of ten years, unless the jobs are part of a mega project which is the United States headquarters of an automobile manufacturer located within a priority area or in a Garden State Growth Zone, in which case the business shall be entitled to tax credits equaling 100 percent of the gross amount of tax credits for each retained full-time job, or unless the new qualified business facility would replace a facility that has been wholly or substantially damaged as a result of a federally-declared disaster, in which case the business shall be entitled to tax credits equaling 100 percent of the gross amount of tax credits for each retained full-time job.
f. Notwithstanding the provisions of subsections a. through e. of this section, for each application approved by the authority's board, the amount of tax credits available to be applied by the business annually shall not exceed:
(1) $35,000,000 and provides a net benefit to the State as provided herein with respect to a qualified business facility in a Garden State Growth Zone which qualifies under the "Municipal Rehabilitation and Economic Recovery Act," P.L.2002, c.43 (C.52:27BBB-1 et al.), or which contains a Tourism District as established pursuant to section 5 of P.L.2011, c.18 (C.5:12-219) and regulated by the Casino Reinvestment Development Authority;
(2) $30,000,000 and provides a net benefit to the State as provided herein with respect to a mega project , an innovation zone established pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill) and located in Greater Camden as defined in P.L. , c. (C. ) (pending before the Legislature as this bill), or a qualified business facility in a Garden State Growth Zone;
(3) $10,000,000 and provides a net benefit to the State as provided herein with respect to a qualified business facility in an urban transit hub municipality;
(4) $8,000,000 and provides a net benefit to the State as provided herein with respect to a qualified business facility in a distressed municipality;
(5) $4,000,000 and provides a net benefit to the State as provided herein with respect to a qualified business facility in other priority areas, but not more than 90 percent of the withholdings of the business from the qualified business facility; and
(6) $2,500,000 and provides a net benefit to the State as provided herein with respect to a qualified business facility in other eligible areas, but not more than 90 percent of the withholdings of the business from the qualified business facility.
Under paragraphs (1) through (6) of this subsection, with the exception of a project located within a Garden State Growth Zone which qualifies for the "Municipal Rehabilitation and Economic Recovery Act," P.L.2002, c.43 (C.52:27BBB-1 et al.) , or which contains a Tourism District as established pursuant to section 5 of P.L.2011, c.18 (C.5:12-219) and regulated by the Casino Reinvestment Development Authority, that divides the total capital investment of the project by the total number of full-time jobs at that project, for each application for tax credits in excess of $4,000,000 annually, the amount of tax credits available to be applied by the business annually shall be the lesser of the maximum amount under the applicable subsection or an amount determined by the authority necessary to complete the project, with such determination made by the authority's utilization of 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, as applicable; 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 the amount necessary to complete the project.]1
(cf: P.L.2014, c.63, s.4)
12. This act shall take effect immediately.
