New Legislation 2013
Fraud Prevention Contractors
P.L.2013, c. 20 was signed into law on January 25, 2013 and takes effect immediately.
This law authorizes the use of fraud prevention contractors by the Division of Taxation. It provides that the director may enter into agreements with one or more private persons, companies, associations or corporations providing fraud prevention services. It further provides that the director may provide such taxpayer information as is necessary for the provider of fraud prevention services to fulfill its obligations under the fraud prevention agreement, provided that such disclosure is not contrary to the provisions of subsection (a) of section 6103 of the federal Internal Revenue Code of 1986, 26 U.S.C. s.6103.
The law is designed to expand the agency’s ability to employ subcontractors to assist in activities specifically related to fraud prevention. All persons, companies, associations or corporations providing fraud prevention services, and their employees, would be specifically subject to the confidentiality provisions of N.J.S.A. 54:50-8. Each entity is required to furnish the director with the affidavit attesting each employee’s acknowledgement of the confidentiality provisions noted in the law.
This new law takes effect immediately.
New Jersey Angel Investor Tax Credit Act
Public Law 2013, Chapter 14 was signed into law on January 31, 2013 and effective for privilege periods and taxable years, as appropriate, beginning on or after January 1, 2012.
This new law, cited as the "New Jersey Angel Investor Tax Credit Act,” revives the expired Small New Jersey-based High Technology Business Investment Tax Credit by establishing credits against corporation business and gross income taxes for individuals or entities investing in New Jersey emerging technology businesses. Subject to certain limitations, the corporation business and gross income tax credits equal 10% of qualified investment in an emerging technology company as approved by the Economic Development Authority, subject to a $25 million annual cap.
Tax credit recipients cannot claim tax credits for that part of an investment in a single company that exceeds $500,000. For gross income tax purposes, it is a refundable tax credit while a corporation business taxpayer may choose between a refund and a 15-year carryforward credit.
Angel investments are equity placements by high net worth individuals into high-risk start-up ventures.
Special Olympics New Jersey Checkoff
P.L.2013, c.13, signed into law on January 29, 2013 and effective for tax years 2012, 2013 and 2014.
This new law provides for voluntary contributions by taxpayers on gross income tax returns to support New Jersey athletes participating in the 2014 Special Olympics USA Games. It establishes a special fund in the Department of the Treasury, to be known as the “2014 NJ Special Olympics Home Team Fund,” to which all donations collected from voluntary contributions are deposited. All funds deposited in the special fund will go to Special Olympics New Jersey to help fund the training and participation of New Jersey athletes in the 2014 Special Olympics USA Games.
As the 2012 gross income tax returns and instructions have already been released, future returns and instructions will include the changes.