The bill amends existing legislation to provide businesses participating in State economic development programs with greater flexibility regarding employee time requirements at qualified business facilities. Specifically, it allows businesses to waive the requirement that full-time employees spend at least 60% of their time at the facility for designated periods. From July 1, 2022, to March 31, 2024, businesses can opt for employees to spend at least 10% of their time at the facility, with a requirement to pay 5% of their tax credit received for the 2022 tax period to support local economic activities. Starting April 1, 2024, the waiver can be extended, allowing employees to spend at least 40% of their time at the facility, with a corresponding payment of 20% of the tax credit to the municipal affordable housing trust fund.

Additionally, the bill introduces provisions for tax certificate holders to carry forward tax credits for up to 20 successive tax periods and allows for the transfer of these credits to other entities. It establishes eligibility criteria for tax credits, including minimum capital investment thresholds and employment requirements, while ensuring that businesses cannot receive credits if they are already benefiting from other incentive programs. The legislation also includes measures to maintain employment levels for tax credit retention and outlines conditions under which businesses may forfeit their credits. Overall, the bill aims to stimulate economic growth by providing financial incentives for businesses to invest and create jobs while supporting local affordable housing initiatives.

Statutes affected:
Introduced: 34:1B-120, 34:1B-129, 34:1B-209, 34:1B-247