CHRISTIE ADMINISTRATION PROVIDES UNPRECEDENTED SUPPORT TO NEW JERSEY’S GREATER TECHNOLOGY INDUSTRIES IN 2013
The Christie Administration’s efforts to grow the state’s technology, biotechnology and life sciences sectors flourished in 2013 with an unprecedented amount of support in various forms to these sectors spanning the last four years. In 2013, the New Jersey Economic Development Authority (EDA) Board approved more than 70 projects to support our “innovation” economy, leading to an estimated 1,770 new jobs in the clean energy, technology and life sciences sectors. Please click here for infographic which illustrates the statewide impact of technology support.
Following the launch of the Angel Investor Tax Credit program in July, the New Jersey Economic Development Authority (EDA) has approved 28 investments, representing a total of more than $14 million in private investment in start-up tech and biotech companies. Signed into law by Governor Christie in January, the program was developed as a tool to create an innovation-friendly atmosphere, providing 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. Businesses with fewer than 225 employees, 75 percent of whom must work in New Jersey, are encouraged to apply for this program.
“Programs and initiatives that spur innovation and job creation, such as the Angel Investor Tax Credit, demonstrate the Christie Administration’s continuing focus on nurturing early-stage technology businesses and ensuring that the next scientific advancements take place right here in New Jersey,” said EDA Chief Executive Officer Michele Brown.
Another state initiative used to assist early stage companies is the Technology Business Tax Certificate Transfer (NOL) Program. This competitive program allocates $60 million annually to technology and biotechnology companies to sell New Jersey tax losses and/or research and development tax credits to raise cash to finance their growth and operations. Since the program was established in 1999, more than 490 different businesses state-wide have been approved for awards totaling $770 million. Fifty-four companies will receive a share of the $60 million allocation for 2013. Advocates of the program said the ability to sell losses for cash through the NOL program has been critical to keeping their growing business on track during the early years.
The EDA helps increase available capital for emerging technology companies by investing as a limited partner in venture capital firms. This year, the EDA Board approved an investment of $2.5 million in ff Rose Venture Capital Fund, L.P., as well as an investment of up to $1.3 million in Milestone Venture Partners IV. The funds are expected to raise a combined $87 million to invest in technology companies.
“The interest from these two traditionally New York-focused venture firms is a testament to the strong ecosystem for entrepreneurs who are growing businesses in NJ,” Kathleen Coviello, Director of the EDA’s Technology and Life Sciences department said.
The EDA additionally approved several projects that also seek to capitalize on the talent in our region and provide an environment that catalyzes innovation, entrepreneurship and job creation. This includes approving leases and lease extensions at the EDA’s facilities at the Technology Centre of New Jersey and Commercialization Center for Innovative Technologies (CCIT) in North Brunswick as well as the Waterfront Technology Center in Camden. Rutgers University finalized a 64-month lease in Camden this year and CCIT saw ten new tenants this year, as well as 12 lease renewals. In August, a lease with Orthobond Corporation helped ensure that CCIT’s largest tenant also remained on the North Brunswick campus, bringing CCIT’s total occupancy to 30 tenants. To support its growth and the expected creation of eight additional jobs, Orthobond plans to move into its larger space at the campus’ Biotechnology Development Center II later this month.
The EDA is part of the state’s results-driven Partnership for Action. Created by Governor Christie and led by Lt. Governor Guadagno, the Partnership is the hub for all economic development activity in New Jersey and is comprised of four interconnected and highly focused organizational elements: Choose New Jersey, the Business Action Center, the Office of the Secretary of Higher Education and the EDA.