Current through Register Vol. 48, No. 38, September 20, 2024
A business entity may receive a deduction against income
subject to State taxes for a contribution to a DZO if the project for which the
contribution is made has been specifically approved by the designating
municipality and by the Department. Any DZO seeking to have a project approved
for contribution must submit an application to the Department describing the
nature and benefit of the project and its potential contributors.
a) Standard Applications. The Department
shall provide a standard application to any DZO seeking to qualify a project
for contributions eligible for tax deductions in accordance with Section 10-10
of the Act. Applications shall be processed in accordance with Section 10-10(e)
of the Act.
b) Project Approval
Period. Applications shall be approved for a period of one project fiscal year.
Continuation of project approval and eligibility for contributions in future
years shall require a new application and current documentation, including:
1) A project balance sheet showing assets and
liabilities, in accordance with the most recent accounting standards of the
Financial Standards Board of the American Institute of Certified Public
Accountants as contained in the publication entitled AICPA Professional
Standards, American Institute of Certified Public Accountants, Harborside
Financial Center, 201 Plaza 3, Jersey City, New Jersey 07311 (June 2001, no
later editions are incorporated);
2) A project budget; and
3) Information regarding the extent to which
project objectives have been accomplished.
c) Renewal Applications
1) All renewal applications shall be
submitted at least 90 days prior to the start of the budget fiscal year or
program year for which approval is requested.
2) Within 15 days after receipt of the
application, the Department shall notify the DZO in writing regarding project
renewal. In the event the renewal application is determined deficient, the
Department will notify the DZO of the deficiencies. The DZO shall have 15 days
from the date of the notice of deficiency to submit corrected or additional
information.
3) Within 5 days after
the start of the budget fiscal year for which the project renewal is requested,
the Department shall notify the DZO that the application is accepted and that
the project will be renewed or that the application is deficient and the
renewal is denied.
d)
Written Endorsement Requirement. In no case shall a project be approved by the
Department that does not have the written endorsement of the designating units
of government.
e) Project Proposal.
A proposed project shall enhance the River Edge Redevelopment Zone in
accordance with Section 10-10(c) of the Act. In describing how the proposed
project will enhance the River Edge Redevelopment Zone, the DZO shall address
the following:
1) Assessment of Need. The
applicant shall identify the specific need, problem or objective that will be
addressed by the proposed project.
2) Project Objectives. The applicant shall
identify how the project will offer relief from the identified problems or meet
the identified need.
3) Project
Criteria. In accordance with Section 10-10(b) of the Act, a DZO must
demonstrate that the proposed project meets all of the following criteria:
A) That the project will contribute to the
self-help efforts of zone residents. (Self-help means the project can
reasonably be expected to improve the ability of participating residents to
live and/or work in the River Edge Redevelopment Zone.);
B) That the zone residents will actively
participate in the project's planning and implementation;
C) That the project lacks sufficient
resources; and
D) That the DZO will
be fiscally responsible for the project.
f) Project Modifications. Project
modifications, either programmatic or budgetary, require the prior approval of
the Department.
g) DZO Project
Administrative Responsibility. The DZO shall furnish the Department an annual
status report on each project. The report must be submitted no later than 30
calendar days following the anniversary and shall consist of the following
information:
1) A financial statement, in
accordance with the most recent generally accepted accounting principles of the
AICPA; and
2) A statement
describing the project's success in achieving the objectives outlined in the
approved application.
