ASSEMBLY ENVIRONMENT, SCIENCE AND TECHNOLOGY COMMITTEE

 

STATEMENT TO

 

ASSEMBLY, No. 1509

 

with committee amendments

 

STATE OF NEW JERSEY

 

DATED: FEBRUARY 22, 1996

 

      The Assembly Environment, Science and Technology Committee favorably reports Assembly Bill No. 1509 with committee amendments.

      The bill requires the New Jersey Economic Development Authority (EDA) to administer, within the New Jersey Emerging Technology and Biotechnology Financial Assistance Program (P.L.1995, c.137; C.34:1B-7.37 et seq.), a corporation business tax benefit certificate transfer program to allow new or expanding emerging technology and biotechnology companies in this State with unused carryover of research and development tax credits and/or unused net operating loss carryover to transfer those tax benefits to other corporation business taxpayers.

      The transfer of these unused tax benefits will be based upon the tax benefit recipient-corporation providing private financial assistance to the new or expanding emerging technology and biotechnology company under written financial assistance agreements negotiated under the auspices of the authority. The financial assistance to be provided must be equal to at least 75% of the value of the transferred tax benefit. The financial assistance may be used for construction, acquisition and development of real estate, purchase of materials, start-up costs, tenant fit-out, working capital, salaries, research and development expenditures and any other expenses determined by the EDA to be necessary to carry out the purposes of the New Jersey Emerging Technology and Biotechnology Financial Assistance Program.

      The bill requires a corporation business taxpayer that acquires a corporation business tax benefit certificate to enter into a written agreement with the new or expanding emerging technology or biotechnology company concerning the terms and conditions of the private financial assistance made in exchange for the certificate.

      The committee made technical amendments to the bill.