Bill > A1973

Introduced Session

This bill increases the tax credit provided for qualified investments under the "New Jersey Angel Investor Tax Credit Act" and increases the Statewide cap on credits. Currently, the Angel Investor Tax Credit Program provides a tax credit in an amount equal to 10 percent of the angel investors' qualified investment in New Jersey emerging technology companies with fewer than 225 employees, where at least 75 percent of those positions are located in the State. The bill increases the tax credit amount to 20 percent of the angel investors' qualified investment. In addition, the bill allows a tax credit of 30 percent of the qualified investment by a taxpayer engaged in the active conduct of a trade or business in an enterprise zone that was eligible for an extension of designation pursuant to N.J.S.A.52:27H-66.6 on the effective date of that statute. The five enterprise zones eligible for an extension on that effective date were Bridgeton, Camden, Newark, Plainfield, and Trenton. Qualifying retail businesses in these enterprise zones were permitted to charge and collect the State's sales and use tax at one-half of the normal rate. The designation of these enterprise zones expired on December 31, 2016 at which time qualifying businesses in the zones could no longer charge and collect the sales tax at the reduced rate. Under the "New Jersey Angel Investor Tax Credit Act," qualified investments include non-refundable transfers of cash made directly to the New Jersey emerging technology business in connection with either stock, interests in partnerships or joint ventures, licenses (exclusive or non-exclusive), rights to use technology, marketing rights, warrants, options, or any similar items, including but not limited to options or rights to acquire any of the listed or a purchase, production, or research agreement. Tax credits awarded pursuant to the Angel Investor Tax Credit Program are considered to be refundable tax credits, and the program is capped at $25 million annually. This bill raises that cap to $35 million annually. The bill is retroactive to January 1, 2018.

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Nancy Pinkin (D)*, 

Introduced, Referred to Assembly Science, Innovation and Technology Committee (on 01/14/2020)