New Jersey Angel Investor Credit Encourages Investment in Emerging Businesses
On January 31, Governor Christie signed legislation creating an Angel Investor Tax Credit Program. This program is intended to stimulate job creation and growth in emerging technology industries by creating an additional incentive for private investment within the industry. The bill provides tax credits for up to 10% of a qualified investment in an emerging technology business with a physical presence in New Jersey and that conducts research, manufacturing, or technology commercialization in the state. Qualified businesses can have no more than 225 employees and 75% of these employees must be working within New Jersey. The company must also be operating in the fields of advanced computing, advanced materials, biotechnology, electronic device technology, information technology, life sciences, medical device technology, mobile communications technology, or renewable energy technology. Lastly, the company will also be required to meet one of the following work or research criteria in New Jersey: a) have qualified research expenses paid or incurred for research conducted in New Jersey or 2) conduct pilot scale manufacturing in this state or 3) conduct technology commercialization in the state. The maximum credit allowable per qualified investment will be $500,000. The total amount the state has provided for up to $25 million in credits. This credit will serve to continue the state’s efforts to be one of the leading regions for fostering innovation and research.
Here is a related article on the credit, in which we further define the industries affected. You can read New Jersey 10% Angel Investor Tax Credit here.