New Jersey § 34:1b-289

§ 34:1b-289.

As used in sections 20 through 34 of P.L.2020, c. 156 ( C.34:1B-288 through C.34:1B-302 ): “ Authority ” means the New Jersey Economic Development Authority established by section 4 of

P.L.1974, c. 80 ( C.34:1B-4 ). “ Director ” means the Director of the Division of Taxation in the Department of the Treasury. “ Follow-on investment ” means a subsequent investment made by an investor who has a previous investment

in a New Jersey high-growth business. “ Fund ” means the “New Jersey Innovation Evergreen Fund” established by section 23 of P.L.2020, c. 156 ( C.34:1B-291 ). “ High-growth business ” means a business that is growing significantly faster than the average growth rate

of the economy or is a start-up company that is investing in developing a product

or new business model that will allow it to grow significantly faster than the average

growth rate of the economy within the next three to five years. “ Incentive area ” means an area in this State: (1) designated pursuant to the “State Planning Act,”

P.L.1985, c. 398 ( C.52:18A-196 et seq. ), as Planning Area 1 (Metropolitan); or (2) that has been designated as a qualified

opportunity zone pursuant to 26 U.S.C. s.1400Z-1 . “ Innovation ecosystem ” means funding, programs, and events that support the establishment and expansion

of high-growth companies in targeted sectors. Examples of such funding, programs, and events include: mentoring programs for start-ups,

meet-up or networking events, funding for locating a business in a collaborative workspace,

programs that provide business services, and entrepreneurial education to companies. “ Opportunity zone ” means a federal population census tract in this State that was eligible to be designated

as a qualified opportunity zone pursuant to 26 U.S.C. s.1400Z-1 as may be amended. “ Principal business operations ” means any of the following: (1) at least 50 percent of the business's employees not primarily engaged in retail sales reside in the State ; (2) at least 50 percent of the business's payroll for employees not primarily engaged

in retail sales is paid to individuals living in the State ; (3) at least 50 percent of the business's full-time employees not primarily engaged

in retail sales are filling a position in the State; or (4) at least 50 percent of

the business's payroll for employees not primarily engaged in retail sales is paid

to full-time employees filling a position in the State. “ Program ” means the New Jersey Innovation Evergreen Program established by section 22 of P.L.2020, c. 156 ( C.34:1B-290 ). “ Purchaser ” means an entity registered to do business in this State with the Director of the

Division of Revenue and Enterprise Services in the Department of the Treasury that

purchases an allocation of tax credits under the program. “ Qualified business ” means a business that, at the time of the first qualified investment in the business

and throughout the period of the qualified investment under the program, is registered

to do business in this State with the Director of the Division of Revenue and Enterprise

Services in the Department of the Treasury; has its principal business operations

located in the State and intends to maintain its principal business operations in

the State after receiving a qualified investment under the program; is engaged in

a targeted industry; and employs fewer than 250 persons at the time of the qualified

investment. “ Qualified investment ” means the direct investment of money by the fund in a qualified business for the

purchase of shares of stock, with an option to make an additional investment in an

option or warrant or a follow-on investment, in the discretion of the authority, all

of which is matched by an investment by a qualified venture firm. “ Qualified venture firm ” means a venture firm that is approved by the authority as a qualified venture firm

pursuant to section 29 of P.L.2020, c. 156 ( C.34:1B-297 ). “ Special purpose vehicle ” means an entity controlled by or under common control with a venture firm that is

formed solely for the purpose of investing in a New Jersey high-growth business alongside

the venture firm. “ Targeted industry ” means any industry identified from time to time by the authority which shall initially

include advanced transportation and logistics, advanced manufacturing, aviation, autonomous

vehicle and zero-emission vehicle research or development, clean energy, life sciences,

hemp processing, information and high technology, finance and insurance, professional

services, film and digital media, non-retail food and beverage businesses including

food innovation, and other innovative industries that disrupt current technologies

or business models. “ Venture firm ” means a partnership, corporation, trust, or limited liability company that invests

cash in a business during the early or expansion stages of a business in exchange

for an equity stake in the business in which the investment is made. Venture firm may include a venture capital fund, a family office fund, or a corporate

investor fund, provided that a professional manager administers the venture firm.