Edison Innovation Fund

The Edison Innovation Fund seeks to develop, sustain, and grow technology and life sciences businesses that will lead to well-paying job opportunities for New Jersey residents.

The Fund is an integrated set of state resources that provides qualified New Jersey companies with financing assistance, real estate development services, and technical assistance, such as assembling land and structuring financing to help create, sustain and grow business.

Financing under the following programs is subject to available funding:

• Edison Innovation Clean Energy Manufacturing Fund:  Two separate program components offer up to $3.3 million as a grant and interest-free loan for New Jersey manufacturers of Class I renewable energy and energy efficiency technologies.  Up to $300,000 is available as a grant to assist with the manufacturing site identification and procurement, design, and permits.  Up to $3 million is available as an interest-free loan to support site improvements, equipment purchases, and facility construction and completion.  One-third of the loan may convert to a performance grant if certain business and technology-based milestones are met.
  
  
• Edison Innovation Commercialization Fund: Up to $200,000 in the form of a subordinated, convertible note. Includes negative pledge on intellectual property. Warrants taken.
  
  
• Edison Innovation Digital Media Tax Credit Program:  Qualified companies involved with the production of digital media content, with at least $2 million in expenditures in New Jersey, may be eligible for a corporation business tax credit of 20 percent for certain digital media content production expenses, including, but not limited to, wages and salaries of individuals involved in the production; costs of computer hardware and software, data processing, visualization technologies, sounds synchronization, and editing; and the rental of facilities and equipment.  Applicants are approved on a first-come, first-serve basis.
  
  
• Edison Innovation Growth Fund: Up to $1 million available, with 1:1 cash match. Financing has similar structure to Commercialization Fund. Companies must have delivered “proof of concept” and achieved successful, referencable, independent beta results.

New Jersey also offers tax credit programs and job creation incentives to spur the growth of our State’s technology industry, including:

• Technology Business Tax Certificate Transfer Program: Qualified biotechnology and technology companies may be eligible to sell unused net operating losses and R&D tax credits to unrelated profitable corporations for at least 80% of their value, up to a maximum lifetime benefit of $15 million.  To qualify, the applicant must have at least one full-time employee working in New Jersey if incorporated less than three years, five full-time employees in New Jersey if incorporated more than three years but less than five years, and 10 full-time employees in New Jersey if incorporated more than five years.  Please note eligibility requirements have been updated for 2010 and this description is not applicable to companies that have applied prior to 2010. 
  
  
• Business Employment Incentive Program (BEIP): Companies seeking to relocate to or expand in New Jersey may be eligible for grants based on the number of new jobs created. By adding at least 10 jobs within two years, eligible technology or life sciences companies can be reimbursed for up to 80 percent of gross withholding tax paid by new employees for up to 10 years, to a maximum of $50,000 per employee over the course of the grant. Companies must demonstrate that the BEIP grant is a material factor in their decision to relocate to or expand in New Jersey.
  

Tax-Exempt Bonds, Loan and Guarantees

For manufacturers that are about to use their net income to service debt, the EDA may provide traditional financing options, including the issuance of tax-exempt bonds.

The EDA issues bonds for manufacturers to finance projects such as real estate acquisitions, machinery and equipment purchases, and for building construction and renovations.   Manufacturers can borrow from approximately $500,000 to $10 million. Terms range up to 10 years for equipment and up to 20 years for real estate.

As companies mature, the EDA can provide direct loans, or partner with banks and other lenders to provide loans and guarantees to sustain business growth.

Edison Innovation Zones

Edison Innovation Zones are “technology neighborhoods” established in Camden, the greater New Brunswick area and Newark where academic and research institutions can work collaboratively with companies to develop and market new products or services while enjoying certain financial incentives and other benefits. These zones offer state-of-the-art technology facilities and convenient access to some of the best researchers, technology companies and service providers in New Jersey.   And because they provide special benefits and financial incentives for resident businesses, Innovation Zones are also proving to be powerful economic engines for local economies. Technology and life sciences companies relocating within Edison Innovation Zones are eligible for enhanced financial benefits through the EDA.