New Jersey Assembly Bill A1359

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24

Caption

Increases tax credits for investments made in emerging technology businesses under "New Jersey Angel Investor Tax Credit Act."

Impact

By enhancing the tax credits through A1359, New Jersey aims to stimulate economic growth and encourage the development of emerging technologies within the state. This change is expected to attract more investors and venture capital into technology sectors, thereby fostering innovation and job creation. The proposed increase in tax credits may particularly benefit companies that are in underserved or economically disadvantaged areas, potentially leading to a more equitable economic landscape.

Summary

Assembly Bill A1359 proposes to increase the tax credits available for investments made in New Jersey's emerging technology businesses. Specifically, the bill raises the standard tax credit from 20% to 30% of qualified investments and also increases the potential additional credit from 25% to 35% for taxpayers who invest in businesses located in designated opportunity zones or those certified as minority or women's businesses. This incentive aims to encourage more investment in sectors identified as critical for technological advancement in New Jersey.

Contention

However, the bill may not be devoid of contention. Critics could argue that increasing tax credits might lead to reduced state revenue, particularly if many investors begin to claim these credits. Additionally, some opponents may question whether the funds will truly impact the community or simply enrich investors without resulting in tangible benefits. The effectiveness and oversight of these tax credits are likely to be points of debate as the bill progresses through legislative discussions.