34:1B-262 Application of tax credit against tax liability.
7. a. The total tax credit amount calculated and credited to the business annually for each year of the eligibility period may be applied against the tax liability otherwise due and required to be paid by the business pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5), 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 for the privilege period or the tax accounting period of the business that coincides with the year of the business's eligibility period for which the tax credit has been issued.
b. The order of priority of the application of the tax credit issued to a business by the authority pursuant to section 5 of P.L.2017, c.282 (C.34:1B-260), and any other tax credits allowed by law, shall be as prescribed by the director. The amount of the tax credit applied under this section against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5), 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 for the privilege period or the tax accounting period, with any other credits allowed by law, shall not reduce the tax liability otherwise due and required to be paid to an amount less than zero. If the tax credit issued to a business exceeds the amount of tax otherwise due and required to be paid, the amount of that excess may be carried over, if necessary, to the 50 privilege periods or tax accounting periods following the privilege period or taxable year for which the tax credit is first allowed to be applied.
c. A business issued an annual installment of a tax credit may apply to the authority and the director for a tax credit transfer certificate in lieu of the business being allowed any amount of the tax credit against the tax liability otherwise due and required to be paid by the business, subject to the limitations on the annual and total amounts of tax credits that may be sold pursuant to paragraph (3) of subsection e. of section 4 of P.L.2017, c.282 (C.34:1B-259). The tax credit transfer certificate, upon receipt thereof by the business from the authority and the director, 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), 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. The certificate issued to the business shall include a statement waiving the business's right to claim that amount of the annual installment of the tax 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 pursuant to this subsection shall not be sold or exchanged for consideration received by the business of less than 75 percent of the transferred tax credit amount. The amount of any tax credit transfer certificate used by a purchaser or assignee against a tax liability otherwise due and required to be paid shall be subject to the same limitations and conditions that apply to the use of the credit by the business that was issued the annual installment of the tax credit.
L.2017, c.282, s.7.