The bill amends existing legislation to enhance tax credits for investments in New Jersey's emerging technology businesses. It updates definitions for various technology sectors, including "advanced computing," "biotechnology," and "renewable energy technology." The New Jersey Economic Development Authority (EDA) is responsible for approving tax credits, which are set at 35% of qualified investments, potentially increasing to 40% under certain conditions, such as investments in qualified opportunity zones or minority and women-owned businesses. The bill establishes a cap of $25 million on the total credits available each calendar year, along with provisions for carryover and claiming credits in the event of corporate mergers or acquisitions.

Additionally, the bill introduces a framework for members of a combined group to sell prior net operating loss conversion carryover at an arm's length price and allows the EDA, in collaboration with the Division of Taxation, to approve applications from emerging technology and biotechnology companies seeking to surrender unused research and development tax credits for financial assistance. The total transferable tax benefits are capped at $75 million per fiscal year, with a maximum lifetime value of $20 million per corporation. The bill includes conditions for recapturing tax benefits if companies do not utilize the financial assistance as intended or fail to maintain operations in New Jersey for five years. It also mandates the EDA to adopt necessary regulations for implementation and repeals certain sections of previous legislation, taking effect immediately for 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