This bill amends the New Jersey Innovation Evergreen Act by introducing a new definition for "Headquarters," which designates the primary location where a business's high-level officers manage operations. It also expands the definition of "Principal business operations" to include businesses with headquarters in New Jersey that employ the largest percentage of full-time employees, excluding those primarily engaged in retail sales, within the state. Additionally, the bill increases the maximum initial investment for qualified investments from $5 million to $10 million and for certain qualifying businesses, such as university spin-offs or minority-owned businesses, from $6.25 million to $12.5 million. It raises the threshold for the New Jersey Economic Development Authority to conduct auctions of tax credits from $15 million to $50 million and allows for immediate regulatory adoption by the authority's chief executive officer.

Moreover, the bill specifies that a qualified investment must either match a venture firm's initial investment in a qualified business or occur at a higher valuation established by an independent third-party valuation or participation by a third-party investor. It prohibits the authority from conducting a tax credit auction if more than $50 million is available from prior auction proceeds, an increase from the previous limit of $15 million. The reporting requirements for qualified venture firms are also revised, requiring only a certified public accountant's statement for the audited financials of the firm and its special purpose vehicle, rather than for all information in the report. These amendments aim to enhance the effectiveness of the program in promoting innovation and economic growth in New Jersey.

Statutes affected:
Introduced: 34:1B-289, 34:1B-290, 34:1B-298, 34:1B-299, 34:1B-302