Welcome Guest. Register Now!  


New Jersey NJ


Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 02-13-2013, 02:17 PM
TaxGuru's Avatar
Tax Guru
 
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 2,399
Blog Entries: 3
New Jersey Announces the "Angel Investor Tax Credit Act"!

NJ Public Law 2013, Chapter 14 was signed into law on January 31, 2013 and effective for privilege periods and taxable years, as appropriate, beginning on or after January 1, 2012. This new law, cited as the "New Jersey Angel Investor Tax Credit Act,” revives the expired Small New Jersey-based High Technology Business Investment Tax Credit by establishing credits against corporation business and gross income taxes for individuals or entities investing in New Jersey emerging technology businesses.

In order to encourage and spur investment and growth in New Jersey's emerging technology businesses, the New Jersey Angel Investor Tax Credit Act was enacted into law on January 31, 2013.

If all the requirements are satisfied, then businesses and individual investors will be able to take a credit against their corporate or gross income tax of up to 10%of their investment.

The investment must be a "qualified investment", which is a non-refundable transfer of cash to a New Jersey emerging technology business or a qualified investment as follows:
  1. A transaction in exchange for stock
  2. Interest in partnerships or joint ventures
  3. Licenses (exclusive or non-exclusive)
  4. Rights to use technology
  5. Marketing rights
  6. Warrants or options
  7. Purchase, production or research agreement
The investment must be made in a "New Jersey emerging technology business" which is defined as a business which has fewer than 225 employees of whom at least 75 percent are in a position located in New Jersey and will operate in the fields of advanced computing, advanced materials, biotechnology, electronic device technology, information technology, life sciences, medical device technology, mobile communications technology, or renewable energy technology. Furthermore, the investment should be incurred for qualified research expenses in New Jersey or will conduct pilot scale manufacturing or technology commercialization in New Jersey.

The credit is subject to a maximum limitation of $500,000 per year for each qualified investment and the total benefits available under this program are subject to an overall limitation of $25,000,000 per year for all participants. Furthermore, the credit is effective for investments made on or after January 1, 2012.

__________________
Find a CPA near you!

Ask TaxGuru Please refer to the legal disclaimer.


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
IRS announces several "Tax Benefits Increase Due to Inflation Adjustments for the tax year 2012." TaxGuru Tax News 0 10-22-2011 12:49 PM
California State Announces reduced "Withholding for Foreign Partners." TaxGuru California 0 08-16-2011 07:48 PM
IRS announces expansion of "Health Coverage for Older Children". TaxGuru Medical 0 07-14-2010 09:03 AM
IRS announces "it will receive Unprecedented Amount of Information in UBS Agreement" TaxGuru General 0 09-07-2009 02:56 PM
The IRS announces "Increased Estate Tax Applicable Exclusion Amount" for 2009! TaxGuru Trusts and Gift Tax Returns 0 07-15-2009 02:31 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning