BioNJ Stresses Need for Enhanced Angel Investor Tax Credit
As other states compete to attract biotechnology companies via favorable tax credits and funding assistance programs, it has become increasingly important for New Jersey to implement similar programs to retain its growing presence within the industry. The current proposal, Senate Bill 581, would provide a tax credit to Angel Investors equal to ten percent of their qualified investment in emerging technology companies up to a maximum of $500,000. In order to make these types of investments more attractive and to remain competitive with programs implemented by other states, BioNJ as well as other commentators have asserted that there is a need for an enhancement of the credit amount to 25%. They assert that this increased credit would be more effective at attracting investors to make investments in early stage companies by mitigating some of the risk associated with the uncertainties that exist when making these types of investments.