The proposed new rules and regulations, which were published on Dec. 1, will become effective 10 days after publication in the register.
CDA, in consultation with the Division on Revenue and Taxation, stated that the proposed amendments to the QC rules and regulations were formulated to restate, enhance and clarify the existing regulations and are necessary to effectively carry out the intent of the Investment Incentive Act of 2000, which created the QC program.
A QC recipient is entitled to tax breaks.
The recommended changes to the rules and regulations were approved by the CDA board on Oct. 15.
Under the new rules, the CDA board may recommend the modi fication of a QC for those in compliance and may suggest suspension or renovation for the non-complying beneficiaries.
All recommendations for modifications will be made only after consultation with Revenue and Taxation and any recommendation will be accompanied by a written memorandum containing findings, conclusions, conditions, and recommendations of the CDA board to the governor.
The recommendation will be considered disapproved if the governor fails to act in 45 days.
For the modification, suspension or revocation of the QC of a non-complying member, the beneficiary will be given 15 days written notice of the opportunity for a hearing.
The hearing will determine if there are sufficient grounds to modify, suspend or revoke the beneficiary’s QC.
According to the proposed rules, the modification is only available and only applies to timely modification requests made on or after Oct. 1, 2008.
