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S 3189

Requires the office of temporary and disability assistance to make publicly available on its website information regarding waivers, rental supplement plans and shelter supplement plans

2025 Regular Session Introduced by Robert Jackson and 1 co-sponsor

Raises the basic credit to 35% (and 40% for targeted investments), expands eligibility, and reallocates unused credits, boosting incentives for NJ tech investments.

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Bill Summary · S 3189

Summary — S-3189 (P.L.2025, c.71) — Changes to New Jersey Angel Investor Tax Credit Program

Status: Enacted (approved P.L.2025, c.71 — June 30, 2025)
Primary sponsor: Sen. Roxanne J. Persaud (cosponsor Robert Jackson)
Agencies affected: New Jersey Economic Development Authority (EDA); Department of the Treasury

Main purpose

To revise the New Jersey Angel Investor Tax Credit Act and related programs to increase the tax credit available to investors in qualifying emerging-technology businesses, tighten the business-size eligibility threshold, modify annual program funding rules, and make related programmatic and statutory changes (including repeal of the New Jersey Ignite Act).

Key provisions

  • Tax credit percentages

    • Raises the basic credit from 20% to 35% of a qualified investment (credit against gross income tax and corporation business tax).
    • Raises the enhanced credit (for investments in businesses in opportunity zones/low‑income communities or certified minority/women businesses, or qualified venture funds committing ≥50% to diverse entrepreneurs) from 25% to 40%.

  • Per-investment and annual limits

    • Clarifies the maximum tax credit per qualified investment remains $500,000.
    • Amends annual program cap mechanics: reduces the direct EDA annual authorization from $35,000,000 to $25,000,000, but allows unused tax benefits from the Technology Business Tax Certificate Transfer Program (the “NOL” transfer program) to be reallocated to the Angel Investor program—so total available credits may exceed $25M depending on transfers.

  • Eligibility changes

    • Lowers the maximum employee threshold for “New Jersey based business” / “New Jersey emerging technology business” from the former ~224 to 150 employees (i.e., smaller businesses qualify).

  • Other changes

    • Repeals the New Jersey Ignite Act and eliminates the NJ Ignite Program.
    • Clarifies that awarded credits may be used in the taxable year/privilege period in which the taxpayer applied.
    • Authorizes the EDA CEO to adopt implementing regulations.

Who is affected

  • Investors/taxpayers making qualifying cash investments in eligible New Jersey emerging technology businesses or qualified venture funds (greater credit value).
  • Emerging technology businesses (smaller enterprises may now be required to meet a lower employee cap to be eligible).
  • EDA and Treasury (administration, certification, and fiscal impact).
  • Local and State finances (tax base and collections).

Fiscal impact & timing

  • Effective: immediately; applies to taxable years/privilege periods beginning January 1 following enactment (credit awards at the new rates begin for investments made in the next calendar year; FY impacts begin when returns are filed — OLS tied to FY2027).
  • Fiscal estimates:
    • Office of Legislative Services (OLS) initial estimate (first reprint): potential maximum State revenue loss of roughly $15.2–$15.7 million annually beginning FY2027 (if higher credits and caps are fully utilized).
    • Later OLS estimate (second reprint): net State revenue impact is indeterminate — dependent on (a) whether total credits approved exceed prior $35M statutory cap and (b) the amount transferred from the Technology Business Tax Certificate Transfer Program. Repeal of NJ Ignite would produce a one‑time State cost reduction (~$300,000 estimated).
    • Potential for increased local revenues and indirect economic benefits if greater investment activity is stimulated; magnitude uncertain.

Procedural history (selected)

  • Passed both houses (Senate and Assembly) and enacted as P.L.2025, c.71 on June 30, 2025. Companion: A-2365 / A-8443.

Compiled from official sources — confirm details with the bill’s official record.

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