The bill amends existing tax credit legislation for investments in New Jersey's emerging technology sector, updating definitions for various technologies such as "advanced computing," "biotechnology," and "renewable energy technology." It establishes a tax credit of 35% for qualified investments, which can increase to 40% under certain conditions, including investments in businesses located in opportunity zones or those certified as minority or women-owned. The maximum tax credit for each investment is capped at $500,000, and the total credits approved in a calendar year are limited to $25 million. The New Jersey Economic Development Authority is tasked with approving applications and implementing necessary regulations, including documentation requirements and procedures for recapturing credits.

Additionally, the bill introduces provisions for the transfer of net operating loss carryovers among members of a combined group, allowing transactions to be treated as if between unrelated taxpayers. It establishes a framework for the New Jersey Economic Development Authority and the Division of Taxation to review applications from emerging technology and biotechnology companies seeking to surrender unused research and development tax credits in exchange for financial assistance, with a cap of $75 million on transferable tax benefits per fiscal year. The bill also sets a maximum lifetime value of surrendered tax benefits at $20 million per corporation and includes conditions for approval and recapture of benefits. It grants the Chief Executive Officer of the New Jersey Economic Development Authority temporary rule-making authority for up to 365 days and specifies that the act will take effect immediately, applying to Angel Investor Tax Credit applications approved for taxable years beginning after January 1 of the year following enactment.

Statutes affected:
Introduced: 54:10A-5.29, 54:10A-5.30, 54A:4-13
Advance Law: 54:10A-5.29, 54:10A-5.30, 54A:4-13, 34:1B-7.42, 34:1B-7.44
Pamphlet Law: 54:10A-5.29, 54:10A-5.30, 54A:4-13, 34:1B-7.42, 34:1B-7.44