46. a. The New Jersey Community-Anchored Development Program is established as a program under the jurisdiction of the New Jersey Economic Development Authority. The authority shall administer the program to invest in and incentivize the expansion of targeted industries in the State and the continued development of certain areas of the State through the provision of tax credits to an anchor institution and, if applicable, partner anchor institutions. The board shall certify a qualified anchor institution and, if applicable, qualified partner anchor institutions based on the requirements of sections 43 through 53 of P.L.2020, c.156 (C. 34:1B-311 through C. 34:1B-321), and may approve the award of a tax credit to an anchor institution pursuant to section 49 of P.L.2020, c.156 (C. 34:1B-317). The value of all tax credits approved by the authority to an anchor institution and, if applicable, partner anchor institutions under the program shall be subject to the limitations set forth in section 98 of P.L.2020, c.156 (C. 34:1B-362).

b. (1) The authority shall administer the program to invest in, and incentivize the establishment of, community-anchored projects by an anchor institution and, if applicable, partner anchor institutions, independently or in collaboration with one or more partner businesses or governmental entities. The authority’s investment in community-anchored projects shall be in the form of the award of tax credits to an anchor institution and, if applicable, partner anchor institutions.

(2) (a) The authority may award a tax credit to an anchor institution and, if applicable, one or more partner anchor institutions under the program, which the anchor institution and, if applicable, each partner anchor institution shall convert into an investment by the authority in a community-anchored project, subject to the condition that the anchor institution and, if applicable, each partner anchor institution either sell and transfer the tax credits, or adopt a plan to use the tax credits in order to finance the completion of the community-anchored project, which condition shall be included in the tax credit agreement entered into pursuant to section 50 of P.L.2020, c.156 (C. 34:1B-318). An anchor institution and, if applicable, each partner anchor institution receiving tax credits under the program shall use the proceeds derived from the sale or financing of the tax credits to make an equity investment in or to provide a loan or other financial support for the community-anchored project that will permit the anchor institution, and, if applicable, a partner business, a partner anchor institution, or both to develop the community-anchored project and to attract tenants, owners, investors, lenders, partners, collaborators, and other beneficial parties to the community-anchored project. A tax credit agreement, entered into pursuant to section 50 of P.L.2020, c.156 (C. 34:1B-318) shall detail the terms by which an anchor institution and, if applicable, each partner anchor institution will convert the award of tax credits into an investment by the authority into the community-anchored project, subject to potential returns on investment to the authority based on an agreed-upon formula for the distribution of returns, including upon the sale of a community-anchored project or at the end of the commitment period. For community-anchored projects financed solely by governmental and nonprofit entity investments, the authority shall negotiate an agreed upon formula which shall include, but not be limited to, the potential recapture of the value of the tax credits awarded. For community-anchored projects that are not financed solely by governmental and nonprofit entity investments, the authority shall negotiate an agreed upon formula which shall include, but not be limited to, the potential recapture of the value of the tax credits awarded and additional returns on investment. The tax credit agreement shall, however, specify that the authority’s interest in the community-anchored project shall be subordinate to the investments made by an anchor institution and, if applicable, each partner anchor institution and partner businesses. References to investments and returns in sections 43 through 53 of P.L.2020, c.156 (C. 34:1B-311 through C. 34:1B-321) shall also include loans and other financial support and their corresponding returns.

(b) Consistent with an applicable tax credit agreement, a tax credit awarded to an anchor institution and, if applicable, each partner anchor institution for conversion into an authority investment, as provided pursuant to subparagraph (a) of this paragraph, may be applied against 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 C. 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

(3) The authority shall develop protocols for assumptions testing relating to projected and actual returns on investment under the program and regularly analyze the returns on investment received by the authority under the program, and shall evaluate future applications and projections considering the results of the assumptions testing and analysis.

c. The authority shall engage in program evaluation and assumptions testing to ensure that the authority at least recaptures the value of the tax credits awarded to all anchor institutions and, if applicable, partner anchor institutions and realizes additional returns on investment under the program; provided, however, that for community-anchored projects financed solely by governmental and nonprofit entity investments, the authority may negotiate a potential return on investment, the calculation of which would include, but not be limited to, recapture of the value of the tax credits awarded for those community-anchored projects financed solely by governmental and nonprofit entities.

d. Any funds distributed to the authority as a return on investment pursuant to the program shall be deposited into the General Fund of the State.

L.2020, c.156, s.46.