In January 2013, Governor Chris Christie signed legislation creating an angel investor tax credit program to spur job creation and growth in New Jersey’s current and next generation of high-skill, high-wage emerging technology industries.
New Jersey will offer a 10% investor tax credit for an individual that invests in a New Jersey emerging technology company up to a maximum of $500,000 for the tax year for each qualified investment made. A New Jersey Emerging Technology Company is defined as a company with fewer than 225 employees of whom at least 75% are filling a position in NJ and which has qualified research expenses paid or incurred for research conducted in this State; conducts pilot manufacturing in the state or conducts technology commercialization in the state in the fields of:
- Advanced computing
- Advanced materials
- Biotechnology
- Electronic device technology
- Information technology
- Life sciences
- Medical device technology
- Mobile communications technology
- Renewable energy technology
The credit cannot reduce tax liability by more than 50% of the taxpayer’s liability. The credit also must be subject to the approval of the Economic Development Authority. Individuals and partnerships are also qualified for the credit. A qualified investment must be the non-refundable transfer of cash by a taxpayer to an unrelated person.
The investor must apply through the Economic Development Authority.
To read the full press release, please click HERE.