Since the 1880s, when Johnson & Johnson first opened its doors in New Brunswick, New Jersey has been a leader in innovation. Home to 13 of the world’s 20 largest biopharmaceutical companies and 12 of the top 22 research & development (R&D) companies, the Garden State is the perfect location for emerging life sciences companies.
As the state’s financing arm, the New Jersey Economic Development Authority (EDA) assists small and mid-sized businesses with low-cost financing options, administers tax incentives to retain and grow jobs, revitalizes communities through redevelopment initiatives, and supports entrepreneurial development through training, networking and mentoring programs. To stimulate New Jersey’s innovative ecosystem, the EDA offers a continuum of assistance designed to help technology and life sciences companies at every stage of growth. EDA programs support hundreds of entrepreneurs, emerging businesses, and established companies each year.
The EDA’s Commercialization Center for Innovative Technologies (CCIT), New Jersey’s leading life sciences incubator, is ideal for biotechnology and life science companies seeking to grow in the Garden State. Located between Princeton and Rutgers universities, CCIT has 27 wet labs and offers access to offices, conference rooms, dedicated staff, and additional resources. New Jersey Founders & Funders events hosted by CCIT introduce emerging technology and life sciences companies to angel and venture capital investors, through personally identified and scheduled one-on-one meetings.
Qualifying early-stage companies can take advantage of New Jersey’s Technology Business Tax Certificate Transfer Program, enabling them to sell unused net operating losses or R&D tax credits to unrelated profitable corporations to raise cash to finance their growth and operations. This funding source provides meaningful non-dilutive capital, with average awards exceeding $1 million annually. Additionally, the state’s Angel Investor Tax Credit Program provides refundable tax credits against New Jersey corporation business or gross income tax for 10 percent of a qualified investment in an emerging biotechnology business – with 75 percent of its employees in New Jersey and that conducts research, manufacturing, or technology commercialization in the state.
Through the state’s Edison Innovation Fund, the EDA provides funding opportunities to companies that have attracted capital from angel and venture capital investors. The fund helps businesses directly finance uses such as hiring key staff, product marketing, and sales. The EDA also helps increase available capital for companies by investing as a limited partner in venture capital funds that invest in New Jersey-based businesses.
For more established companies, the New Jersey Economic Opportunity Act (EOA) strengthened the state’s ability to support growth in technology and life sciences, and technology companies with a minimum of 10 jobs may be eligible for a host of powerful incentives in the form of transferable tax credits. Grow NJ is the primary program for job creation and retention under the EOA.
To learn more about resources available to New Jersey’s technology and biotechnology companies, visit http://www.njeda.com/tls. and follow @NJEDATech on Twitter and LinkedIn.
New Jersey Economic Development Authority
PO Box 990
Trenton, NJ 08625-0990
36 West State Street
Trenton, NJ 08625