N.J.A.C. 18:7-3.10 - Regulated Investment Company Other Than a Captive Regulated Investment Company; Tax Payable

(a) For the privilege periods beginning before January 1, 2002, the tax payable by a regulated investment company, entitled and electing to report as such, is $ 250.00.

(b) For privilege periods beginning on and after January 1, 2002, the tax applicable to a regulated investment company shall be 500.00, provided, however, that for a taxpayer that is a member of an affiliated group or a controlled group pursuant to [I.R.C. § 1504](/navigator/019dabbf-270f-775e-bbf7-a351651b6519/title_18.chapter_7.subchapter_3.section_7_3_10) or 1563 and whose group has total payroll of 5,000,000 or more for the privilege period, the minimum tax shall be $ 2,000 for the privilege period.

(c) A regulated investment company, as defined at N.J.S.A. 54:10A-4(g), which also qualifies as an investment company, as defined at N.J.S.A. 54:10A-4(f), is not subject to the AMA. Such a company shall annually file the applicable New Jersey corporation business tax return for the respective privilege period. In addition, a statement should be attached to the taxpayer's return indicating that the regulated investment company qualifies as an investment company.

(d) A taxpayer that qualifies as both a regulated investment company and an investment company shall pay the minimum tax applicable to all taxpayers of $500.00 unless it is a member of a controlled or consolidated group having total payroll of$ 5,000,000 or more, in which case the minimum tax would rise to the level of $ 2,000.

(e) A regulated investment company that does not qualify as an investment company is subject to the alternative minimum assessment.

(f) For privilege periods ending on and after July 31, 2023, a captive regulated investment company meeting the definition at N.J.S.A. 54:10A-4(jj) shall be taxed in the same manner as a C corporation and not as a regulated investment company.