N.J. Admin. Code § 19:31R-1.3

Current through Register Vol. 56, No. 12, June 17, 2024

Section 19:31R-1.3 - Eligibility criteria

(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.

N.J. Admin. Code § 19:31R-1.3

Amended by R.2017 d.010, effective 1/3/2017.
See: 48 N.J.R. 2031(a), 49 N.J.R. 134(a).
In (b), substituted "six months" for "one year".
Amended by R.2018 d.122, effective 6/4/2018.
See: 49 N.J.R. 3576(a), 50 N.J.R. 1374(a).
Rewrote the section.
Amended by R.2021 d.139, effective 12/6/2021.
See: 53 N.J.R. 1481(a), 53 N.J.R. 2072(c).
In (a), inserted a comma following the first occurence of "business", and inserted ", or a qualified venture fund"; in (b), inserted a comma following the first occurence of "companies", and inserted the last sentence; rewrote (d); and added (f).

Recodified from 19:31-19.3 56 N.J.R. 807(a), effective 5/6/2024