TRENTON – Gov. Chris Christie signed a bill into law Thursday creating the angel investor tax credit program to spur job creation and growth in high-skill, high-wage, emerging technology industries.
The bill, S581/A1084, provides tax credits for as much as 10 percent of a qualified investment in an emerging technology business with a physical presence in New Jersey and that conducts research, manufacturing, or commercialization in the state. Up until now, the state did not offer such credits.
Credits will be capped at $500,000 for each qualified investment and the total program is subject to an annual cap of $25 million.
“Many innovations that make it to market across the world begin here in New Jersey in cornerstone industries like pharmaceuticals and the life sciences and information technology with high-skill, high-wage jobs that anchor our economy and communities,” Christie said in a statement.
“To secure our state’s leadership in these fields and foster growth and innovation in cutting-edge emerging technology industries, we must have policies that support New Jersey’s own start-ups in these fields. This Angel Investor Tax Credit program will help achieve just that by incentivizing millions of dollars in private investment in New Jersey’s entrepreneurial businesses, with jobs right here in the Garden State, to research, test, or commercialize the next advancements in our society.”
Assemblywoman Annette Quijano, (D-20), of Union and Assemblyman Gary Schaer, (D-36), of Passaic, two of the sponsors, praised the signing of the bill.
The “Start-up firms receiving such capital have a significantly higher rate of survival, faster growth and superior access to fundraising than early-stage firms devoid of angel financing,” Quijano said in a statement. “It’s in New Jersey’s best interest to encourage angel investors to examine and invest in technology start-up businesses, as successful start-ups create jobs, generate wealth and enhance the overall well-being in the state.”
“These types of investors can play a vital part in New Jersey’s economic recovery,” Schaer said in a statement. “Some angel investors do not just invest in, but also mentor, coach and assist promising start-up enterprises. This is just the kind of program we need to fill the gaps and create new jobs and economic development throughout our state.”
In order for businesses to be eligible for the credits, they cannot have more than 225 employees and 75 percent of those workers must be in New Jersey. The employees must work in fields such as advanced computing, advanced materials, biotechnology, electronic device technology, information technology, life sciences, medical device technology, mobile communications technology, or renewable energy technology.