Those interested in taking advantage of New Jersey’s Angel Investor Tax Credit Program can now access a webinar via www.njeda.com/AngelTaxCredit to learn more about the program. The site also features a newly revised application and Frequently Asked Questions.
Administered by the New Jersey Economic Development Authority in consultation with the New Jersey Division of Taxation, the program offers a 10 percent refundable tax credit against New Jersey corporation business or gross income tax for qualified investments in an emerging technology business with a physical presence in New Jersey and that conducts research, manufacturing, or technology commercialization in the state. The program is available to all eligible taxpayers, including out of state investors.
To qualify, technology businesses must employ fewer than 225 employees, 75 percent of whom must work full-time in New Jersey. Businesses must also conduct at least one of the following activities in New Jersey: incur qualified research expenses; conduct pilot scale manufacturing; or commercialize an eligible technology. Eligible technologies include: advanced computing, advanced materials, biotechnology, electronic devices, information technology, life sciences, medical devices, mobile communications, and renewable energy technology.
A maximum tax credit of $500,000 is allowed per each qualified investment, and the total program is subject to an annual cap of $25 million.
Applications must be submitted within one year of the date of investment. Completed applications, with all required documentation, must be submitted by November 15, 2015 in order to be considered for approval for a 2015 tax credit certificate. Any applications received after this date will be considered and reviewed for a potential tax credit certificate for 2016.
Since the EDA began accepting applications to the program in July 2013, more than 200 investments have been approved, representing the injection of nearly $75 million of capital into New Jersey technology and life sciences companies.Related Articles: