N.J. Admin. Code § 19:31X-1.3

Current through Register Vol. 57, No. 1, January 6, 2025

Section 19:31X-1.3 - New Jersey Innovation Evergreen Fund (Fund)

(a) The Authority shall establish and maintain a dedicated fund to be known as the New Jersey Innovation Evergreen Fund (Fund). The Authority shall use the money in the Fund to carry out the purposes enumerated in the Act and this subchapter.

(b) The Authority shall credit the Fund with money paid by tax credit purchasers from the sale of tax credits pursuant to N.J.A.C. 19:31X-1.4; distributions from payments or repayments made to the Authority, in accordance with subsection c. of section 31 at P.L. 2020, c. 156 (N.J.S.A. 34:1B-299) and N.J.A.C. 19:31X-1.8( l); earnings received, if any, from the investment or reinvestment of money credited to the Fund; money received pursuant to payments, repayments, or redemptions required pursuant to N.J.A.C. 19:31X-1.10, except for the recapture of tax credits pursuant to N.J.A.C. 19:31X-1.10(b); and any money that, from time to time, may otherwise become available for the purposes of the Fund.

(c) Subject to availability of funds, the Authority shall allocate the money in the Fund to qualified venture firms to make qualified investments in qualified businesses through an Evergreen special purpose vehicle, in accordance with section 30 at P.L. 2020, c. 156 (N.J.S.A. 34:1B-298) and N.J.A.C. 19:31X-1.8 and to pay the administrative, legal, and auditing expenses of the Authority incurred in the administration of the program. In addition, the Authority shall use 75 basis points of the total amounts deposited in the Fund, calculated on an annual basis, for programs administered by the Authority that create an innovation ecosystem that supports and promotes high-growth businesses in the State.

(d) The Authority shall deposit into the Fund dividends and returns on investments paid to the Authority by, or on behalf of, a qualified business. Upon the Fund receiving total deposits from such Fund dividends and returns from qualified investments of $ 500,000,000, the Authority shall pay 50 percent of any return on investment in excess of twice the original and follow-on investment to the General Fund of the State.

(e) The Authority shall account for, and calculate reserves for, follow-on investments and qualified venture firm management fees and direct expenses as set forth at N.J.A.C. 19:31X-1.8(k); programs that support the State's innovation ecosystem pursuant to (c) above; and administrative, legal, and auditing expenses of the Authority in administering the program, plus such other amounts as shall be determined by the Authority. The Authority may also reserve such amounts as it considers necessary to achieve the goal set forth at N.J.A.C. 19:31X-1.8(b) and any goals that may be developed pursuant to the disparity study completed and performed, in accordance with N.J.A.C. 19:31X-1.8(c). The Authority shall not include these reserves when calculating the amount in the Fund available for new qualified investments.

N.J. Admin. Code § 19:31X-1.3

Recodified from 19:31-25.3 56 N.J.R. 807(a), effective 5/6/2024