The nj.gov website has the document git5.pdf.
In that document, page 3 states:
- A qualified investment fund must:
- Be a regulated investment company;
- Invest 80% or more of its funds (other than cash or receivables) in securities that are exempt from New Jersey Income Tax; and
- Complete and retain Form IF-1, Certification of Qualified Investment Fund, to document its status. This certification does not need to be filed with us, but must be made available upon request.
Consider a mutual fund that invests in the municipal bonds of multiple states. That mutual fund breaks out the percentage of dividends paid by state. Are the dividends from the NJ portion of that fund tax exempt in NJ if the NJ portion is < 80% of the total dividends received? An example fund is the Invesco AMT-Free Muni Income fund. The breakdown by state is in the document at this link Invesco AMT-Free Municipal Income Fund This fund is in the 1st column of the table. NJ portion is 7.41% on page 3.
