The bill seeks to enhance the New Jersey Angel Investor Tax Credit Act by significantly increasing the tax credits available for investments in emerging technology businesses. It raises the tax credit from 20% to 60% of the qualified investment made by taxpayers, with the potential for a higher credit of 65% for those investing in businesses located in qualified opportunity zones or those certified as minority or women-owned. The maximum allowable tax credit for each qualified investment remains capped at $500,000. Additionally, the bill revises the definitions of "New Jersey based business" and "New Jersey emerging technology business," lowering the employee threshold from 225 to 150 while ensuring that at least 75% of employees work in New Jersey.

Moreover, the bill outlines that partnerships cannot directly claim credits but may allocate them based on distributive shares of partnership income. The New Jersey Economic Development Authority is designated to adopt necessary regulations for the effective administration of these tax credits, with a cumulative cap of $35 million on the total credits approved in any calendar year. 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