This bill amends the New Jersey Angel Investor Tax Credit Act to significantly increase the tax credits available for investments in certain technology business ventures. The tax credit is raised from 20% to 60% of the qualified investment made by taxpayers in New Jersey emerging technology businesses, holding companies, or qualified venture funds. Additionally, taxpayers who invest in businesses located in qualified opportunity zones or those certified as minority or women's businesses may qualify for an increased tax credit of up to 65%. The maximum allowable tax credit for each qualified investment is capped at $500,000, and the cumulative total of credits approved in any calendar year is limited to $35 million to ensure sustainability.

The bill also revises the definitions of "New Jersey based business" and "New Jersey emerging technology business," lowering the employee threshold from 225 to 150 while maintaining the requirement that at least 75% of employees must be working in New Jersey. This change aims to broaden eligibility for tax incentives, encouraging investment in smaller, innovative companies. The New Jersey Economic Development Authority is tasked with implementing these changes and establishing necessary rules and regulations for the administration of the tax credits. The bill is set to take effect immediately and will apply to taxable years beginning on or after January 1 of the year following its enactment.

Statutes affected:
Introduced: 54:10A-5.29, 54:10A-5.30, 54A:4-13