The bill amends existing tax credit provisions to bolster support for New Jersey's emerging technology businesses and related entities. It introduces a cap of $500,000 on tax credits for each qualified investment made by a taxpayer, with a potential five percent increase if the investment is directed towards specific businesses, such as those located in qualified opportunity zones or certified as minority or women-owned. The bill also outlines the allocation of credits for partnerships and S corporations, ensuring that shareholders can apply their share of the credit against their tax liabilities. Additionally, it establishes a cumulative cap of $25 million on the total credits that can be approved in any calendar year and allows taxpayers to carry over unused credits.

Furthermore, the bill introduces a corporation business tax benefit certificate transfer program, enabling new or expanding emerging technology and biotechnology companies to surrender unused research and development tax credits for use by other corporations, provided there is no affiliation between the entities. The total transferable tax benefits are capped at $75 million per fiscal year, with a maximum lifetime value of surrendered tax benefits set at $20 million per corporation. The New Jersey Economic Development Authority is tasked with implementing the necessary regulations and procedures to support these changes, including the review and approval of applications for tax benefit transfer certificates. The act is set to take effect immediately and will apply to applications for the Angel Investor Tax Credit approved for taxable years beginning after January 1 of the year following its 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