The bill amends the New Jersey Angel Investor Tax Credit Act to significantly increase the tax credits available for investments in certain technology business ventures. It raises the tax credit 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 can receive a further increase in the tax credit to 65%. The maximum allowable tax credit for each qualified investment is capped at $500,000, and the total amount of credits available in any calendar year is limited to $35 million.

The bill also revises the definitions of "New Jersey based business" and "New Jersey emerging technology business," reducing the maximum number of employees from 225 to 150, with at least 75% of those employees working in New Jersey. It specifies that partnerships cannot directly claim credits but can allocate them based on distributive shares of partnership income. The New Jersey Economic Development Authority is responsible for adopting necessary rules and regulations to implement these changes effectively. The act 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