New Jersey Administrative Code › Title 19 - OTHER AGENCIES › NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY › Chapter 31R - ANGEL INVESTOR TAX CREDIT PROGRAM › Subchapter 1 - ANGEL INVESTOR TAX CREDIT PROGRAM › Section 19:31R-1.3 - Eligibility criteria

Current through Register Vol. 56, No. 14, July 15, 2024
(a) In order to be
				  considered for tax credits under the Angel Investor Tax Credit Program, an
				  investor shall make a qualified investment in a New Jersey emerging technology
				  business, or a New Jersey emerging technology business holding company, or a
				  qualified venture fund.
(b) The
				  Program applies to privilege periods and taxable years beginning on or after
				  January 1, 2012, except that the Program applies to qualified investments in
				  New Jersey emerging technology businesses, and in New Jersey emerging
				  technology business holding companies, that make verified transfers of funds to
				  New Jersey emerging technology businesses that conduct technology
				  commercialization in this State in the field of carbon footprint reduction
				  technology for privilege periods and taxable years beginning on or after May 1,
				  2017. For qualified investments made on or before July 1, 2013, an investor
				  must submit a completed application by July 1, 2014, except that a completed
				  application for qualified investments in New Jersey emerging technology
				  business holding companies made before May 1, 2017, must be submitted by
				  December 31, 2017. For all other qualified investments in a New Jersey emerging
				  technology business, an investor must submit a completed application within six
				  months of the date of the qualified investment, and for all other qualified
				  investments in a New Jersey emerging technology business holding company,
				  within six months of the date of the verified transfer of funds. For all
				  qualified investments in a qualified venture fund, an investor must submit a
				  completed application within six months of executing an irrevocable contractual
				  commitment to a qualified venture fund.
(c) A credit shall not be allowed pursuant to
				  section 1 at P.L. 1993, c. 175 (N.J.S.A.
				  54:10A-5.24), for expenses paid from funds
				  for which a credit is allowed, or which are includable in the calculation of a
				  credit allowed, under this subchapter.
(d) For a qualified investment to a qualified
				  venture fund, the contract containing the irrevocable contractual commitment
				  must be a fully executed document in writing. For any other qualified
				  investment, any asset received and any agreement entered into by the investor
				  in connection with the non-refundable transfer of cash that serves as a
				  qualified investment must be a fully executed document in writing.
(e) For qualified investments in a New Jersey
				  emerging technology business holding company, the verified transfer of funds
				  shall be evidenced by documentation, which provides proof of a cash transaction
				  originating with a taxpayer and concluding with a New Jersey emerging
				  technology business, provided that the transactions from origin to destination
				  occur within the same tax year.
(f)
				  A qualified venture fund shall not be eligible as an investor for a qualified
				  investment in a New Jersey emerging technology business or a New Jersey
				  emerging technology holding business if an investor has previously been
				  approved tax credits for a qualified investment in that qualified venture fund.
				  An investor that applies for a qualified investment in a qualified venture fund
				  shall not be eligible if that qualified venture fund has previously been
				  approved tax credits for a qualified investment in a New Jersey emerging
				  technology business or a New Jersey emerging technology holding
				  business.