ASSEMBLY ENVIRONMENT, SCIENCE AND TECHNOLOGY COMMITTEE

STATEMENT TO

ASSEMBLY, No. 1505

STATE OF NEW JERSEY

DATED: FEBRUARY 22, 1996

      The Assembly Environment, Science and Technology Committee favorably reports Assembly Bill No. 1505.

      This bill provides a credit under the Corporation Business Tax for investment by corporate taxpayers in small New Jersey-based high-technology businesses that conduct research in New Jersey in certain fields of science and technology or that conduct pilot scale manufacturing in New Jersey in order to bring their high-technology innovations into market production.

      The tax credit is based upon 10% of investments made in each small high-technology business with less than 225 employees, 75% of whom have jobs in New Jersey. The utilization of the credit is limited to $1,000,000 per investment, per year, with carryforwards available for unutilized credits. The investment must be a non-refundable investment at risk in the small high-technology business. The small high-technology business must conduct pilot scale manufacturing or qualified research in New Jersey in the fields of advanced computing, advanced materials, biotechnology, electronic device technology, environmental technology, and medical device technology.