Angel investor tax credit bill passes Senate

TRENTON – The Senate passed a bill that would benefit so-called angel investors but put a dent in the state coffers.

S581: the “New Jersey Angel Investor Tax Credit Act,” passed 32-0, offers credits against corporation business and gross income taxes for investments made in emerging technology companies.

The credit would equal 10 percent of an investment in an eligible company that has fewer than 225 employees. At least 75 of the workers would have to be in New Jersey.

Overall, the Angel Investor program would be capped at $25 million a year, and credits for investment in a single business would be capped at $500,000.

In a fiscal estimate, the Office of Legislative Services theorized that the bill might lead to a loss of $1.1 million to $2.5 million a year from the general revenue fund.