EDA Ensures Innovation

State agency helps high-tech firms with valuable incentives.

By Melissa Orsen, CEO, New Jersey Economic Development Authority On Jun 13, 2016

New Jersey is highly educated and perfectly located. Beyond the state’s inherent strengths as a business location, New Jersey offers a multitude of resources that have been critical to creating an environment where businesses can thrive.

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 and mentoring programs.

To stimulate growth of New Jersey’s innovation economy and drive commercialization of pioneering technology within the state, the EDA offers a continuum of assistance specifically designed to help technology and biotechnology companies at every stage of growth.

From networking and mentoring to financial assistance such as loans and tax credits, hundreds of entrepreneurs, emerging businesses and established companies benefit from EDA support each year.

The EDA’s Commercialization Center for Innovative Technologies (CCIT) is New Jersey’s leading life sciences incubator. Located between Princeton and Rutgers universities, CCIT offers tenants affordable lab and office space, educational programs, and a wealth of valuable support, including assistance with identifying funding sources, and access to small business development resources and administrative support. Semi-annual New Jersey Founders & Funders events at CCIT provide emerging technology and biotechnology companies with access to angel and venture capital investors.

Created in 2013, 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. Emerging companies can take advantage of New Jersey’s Technology Business Tax Certificate Transfer Program, which enables qualified companies to sell unused net operating losses or R&D tax credits to unrelated profitable corporations to raise cash to finance their growth and operations.

Financing opportunities are also available through the Edison Innovation Fund, designed to support companies that have attracted capital through angel and venture capital investors. The Fund helps companies directly finance uses such as hiring key staff, product marketing and sales. Additionally, the EDA 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 targeted industries, including technology and biotechnology. Changes to the EOA reduced the threshold to qualify for Grow New Jersey (Grow NJ) tax credits from 100 full-time jobs to as low as 10 full-time jobs for technology startups and 25 new jobs in other targeted industries. Grow NJ is the primary program for job creation and retention under the EOA.

To learn more about opportunities available to New Jersey’s technology and biotechnology companies, visit www.njeda.com/tls and follow @NJEDATech on Twitter and LinkedIn.

---

New Jersey Economic Development Authority

Melissa Orsen
CEO

PO Box 990
Trenton, NJ 08625-0990

36 West State Street
Trenton, NJ 08625

609-858-6700
www.njeda.com

Related Articles: