ASSEMBLY APPROPRIATIONS COMMITTEE

STATEMENT TO

ASSEMBLY, No. 1505

STATE OF NEW JERSEY

DATED: NOVEMBER 6, 1997

      The Assembly Appropriations Committee reports favorably Assembly Bill No. 1505.

      Assembly Bill No. 1505 provides a credit under the corporation business tax for corporate taxpayer investment 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 on 10 percent of investments made in each small high-technology business with fewer than 225 employees, 75 percent of whom have jobs in New Jersey. The utilization of the credit is limited to $1 million 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.

      This bill is identical to Senate Bill No. 445.

FISCAL IMPACT:

      The Division of Taxation in the Department of the Treasury has estimated that this bill could result in an annual, continuing loss of General Fund revenue of $6.25 million per year beginning in FY 1998.