BILL TO PROMOTE INVESTMENT IN EMERGING TECHNOLOGY BUSINESSES ADVANCES

Legislation sponsored by Assembly Democrats Gary Schaer, Annette Quijano, Nelson Albano and Wayne DeAngelo to promote investment in emerging technology businesses that can create jobs and economic growth for New Jersey was released Tuesday by an Assembly panel.
The bill (A-3592) know as the New Jersey Angel Investor Tax Credit Act is part of the Democratic legislative “Back to Work NJ” program to create jobs and boost economic growth.
Angel investments are known as equity placements by wealthy individuals into high-risk start-up ventures.
“This effort is all about jobs and economic development,” said Albano (D-Atlantic/Cape May/Cumberland). “Encouraging this type of investment will go a long way toward jumpstarting our economy and positioning New Jersey as an unquestioned leader in high technology industries.”
The bill establishes credits against corporation business and gross income taxes for investing in New Jersey emerging technology businesses.
Subject to certain limitations, the corporation business and gross income tax credits would equal 10 percent of a taxpayer’s qualified investment in an emerging technology company with fewer than 225 employees, of whom at least 75 percent are filling a position in New Jersey.
Purchase, production and research agreements would qualify as creditable investments.
The program is subject to a $25 million annual cap.
The bill was released 8-2-1 by the Assembly Budget Committee.