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. The threshold for the New Jersey Economic Development Authority to auction tax credits is raised from $15 million to $50 million, and the CEO of the authority is granted the ability to adopt necessary regulations immediately upon filing for a period of up to 365 days.

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 also streamlines reporting requirements for qualified venture firms by reducing the necessity for a certified public accountant's statement to only apply to the financials of the firm and the special purpose vehicle, which must include a consolidated summary of the firm's performance. These changes aim to enhance the operational efficiency of the New Jersey Innovation Evergreen Program while ensuring accountability for investments made under the program.

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