CHRISTIE ADMINISTRATION ANNOUNCES JULY 1 LAUNCH OF ANGEL INVESTOR TAX CREDIT
Program Will Spur Investment in New Jersey’s Emerging Technology Businesses
TRENTON, N.J. (June 11, 2013) – The Christie Administration today announced the Angel Investor Tax Credit Program will launch on July 1, 2013. The program is a result of the Angel Investor Tax Credit Act, which Governor Christie signed into law in January to spur job creation and growth in New Jersey’s current and next generation of high-skill, high-wage emerging technology industries.
The Angel Investor Tax Credit Program will provide credits against New Jersey corporation business or gross income tax for 10 percent 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. The program, which will be administered by the New Jersey Economic Development Authority (EDA) in consultation with the New Jersey Department of the Treasury, will be available to taxpayers who invested in an emerging technology business in calendar year 2012 or after.
“The Angel Investor Tax Credit demonstrates the Christie Administration’s continuing focus on nurturing New Jersey’s early-stage technology businesses,” EDA Chief Executive Officer Michele Brown said. “This program will serve to strengthen New Jersey’s competitive edge, incentivize significant private investment in our most promising companies and create jobs of the 21st century.”
To qualify, technology businesses must employ fewer than 225 employees, 75 percent of whom must work in New Jersey. Businesses must also conduct at least one of the following in New Jersey: incur qualified research expenses; conduct pilot scale manufacturing; or commercialize an eligible technology. Eligible technologies include advanced computing, advanced materials, biotechnology, electronic devices, information technology, life sciences, medical devices, mobile communications, and renewable energy technology.
Credits will be capped at $500,000 per tax year for each qualified investment, and the total program is subject to an annual cap of $25 million.
The implementation of the program was approved at today’s EDA Board meeting. The Board meeting schedule, as well as Board agendas and minutes, are available at www.njeda.com. All Board actions will take effect at the expiration of the statutory period for the Governor’s review and consideration of the meeting minutes.
For more information on the Angel Investor Tax Credit Program, visit www.njeda.com/angeltaxcredit. Beginning July 1, 2013, applications will be available.