Translate
Facebook
Twitter
Instagram
LinkedIn
Soundcloud
MEDIA CONTACT
Press Release
August 5, 2022
3 minute read

NJEDA Opens New Jersey Corporate Tax Credit Auction to Fuel New Jersey Innovation Evergreen Fund


Funding raised from auction will help first-of-its-kind ‘Innovation Evergreen Fund’ invest in Garden State early-stage businesses

Trenton, N.J. (August 5, 2022) – The New Jersey Economic Development Authority (NJEDA) today announced that it has launched the next phase in the creation of New Jersey Innovation Evergreen Fund (NJIEF) by opening the first of up to five annual New Jersey Corporate Tax Credit Auctions to fuel the fund. The NJIEF is a groundbreaking new tool to increase access to strategic resources and venture capital in New Jersey. Under the NJIEF, the State will become an equity investor in startups deploying up to $600 million into companies alongside professional venture capital groups. This strategic investment will not only support New Jersey’s entrepreneurs, but will also ensure that more companies start, grow, and stay in state.

For the 2022 auction year, a pilot amount of $30 million of tax credits will be available for purchase through the New Jersey Corporate Tax Credit Auction. Based on demand, the Authority may increase the amount of tax credits available in the current year. The funds raised from the auction will later be matched by professional venture capital firms and invested into high-growth, early-stage businesses across the Garden State.

“The NJIEF is a unique model for driving investment and other resources for bolstering the success rate of startup companies,” said NJEDA Chief Executive Officer Tim Sullivan. “Through the NJIEF, successful New Jersey corporations will help to nurture and elevate the next generation of high-growth businesses. This will lead to job creation and scientific breakthroughs, and will help to deliver on Governor Phil Murphy’s commitment to recapturing New Jersey’s global leadership position in innovation and creating the most diverse and inclusive innovation ecosystem in America.”

Sullivan noted that, in addition to benefiting from the purchase of tax credits, corporations participating in the NJIEF will help drive New Jersey’s innovation ecosystem through their strategic engagement with emerging companies in which the NJIEF will later invest.

Established by the New Jersey Economic Recovery Act of 2020, the NJIEF is an innovative tool designed to incentivize investment in emerging New Jersey companies while creating mentoring, networking, and educational opportunities to help position these companies for success.

Corporations seeking to purchase the tax credits must commit to supporting the state’s innovation economy through activities such as mentorship, internships, sales and distribution pipeline access, and availability to serve on the NJIEF Advisory Board for one year. Completed applications, including a refundable deposit, must be received by October 7, 2022.

“New Jersey has vast appeal for businesses seeking top talent, a thriving innovation community, and a prime location, and the NJIEF will be an additional tool for attracting corporations and startups choosing to start and grow within our state,” NJEDA Chief Economic Transformation Officer Kathleen Coviello said. “We look forward to seeing the growth that will result from this investment of funding and targeted sharing of intellectual capital.”

Full details on the NJIEF are available at https://www.njeda.com/evergreen.

About the NJEDA

The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.

To learn more about state resources available to New Jersey entrepreneurs and early-stage companies, visit https://www.njeda.com and follow @NewJerseyEDA on FacebookTwitterInstagram, and LinkedIn.

###

SHARE

Related Content

Press Release

November 28, 2022

Research with NJ Portal Gives Entrepreneurs and Investors Access to Research at New Jersey’s World-Class Universities

TRENTON, N.J. (November 28, 2022) – The New Jersey Commission on Science, Innovation and Technology (CSIT) today announced the expansion of ResearchwithNJ.com to provide local, national, and international innovation communities with insight into groundbreaking research being conducted at five...

Press Release

November 22, 2022

Newark-Based HAX Startup Development Program Approved for NJ Accelerate Support

TRENTON, N.J. (November 22, 2022) – HAX, LLC., a startup development program for pre-seed hard tech companies, has recently been approved for support from NJ Accelerate, New Jersey Economic Development Authority's partner accelerator program.

Press Release

November 18, 2022

NJEDA Extends Food Security Planning Grant Program Application Deadline to December 20

Trenton, N.J. (November 18, 2022) – The New Jersey Economic Development Authority (NJEDA) announced that it has extended the application deadline for its $1.5 million Food Security Planning Grant Program to December 20, 2022. This competitive program offers grants...