NJEDA – Investors Have Until November 1 to Apply for 2021 Tax Credits
The New Jersey Economic Development Authority (NJEDA) today reminded the investor community that applications for the New Jersey Angel Investor Tax Credit Program must be submitted by 11:59 p.m. on November 1 to considered for the 2021 program year. Applications received after this time will be considered for the 2022 program. The program, which is open to both in-state and out-of-state investors, is designed to encourage and incentivize investment into emerging New Jersey technology businesses.
Through the Angel Investor Tax Credit Program, an investor can receive a refundable tax credit equal to a percentage of their qualified investment made in a New Jersey early-stage company. The company’s primary business must be an eligible technology, including advanced computing, advanced materials, biotechnology, carbon footprint reduction technology, electronic device technology, information technology, life sciences, medical device technology, mobile communications technology, or renewable energy technology. In addition to commercializing one of these eligible technologies, the business receiving the investment must employ fewer than 225 employees, at least 75 percent of whom work in New Jersey. An investment in a New Jersey emerging technology business holding company may also meet the requirements for a qualified investment. All applications must be submitted within six months from the time the investment is made.
2021 is the second year that investors can benefit from the program’s expansion, which was signed into law by Governor Phil Murphy in the summer of 2019. Under enhancements to the program, which took effect January 1, 2020, investors can receive an increase in the tax credit from 10 percent to 20 percent on a qualified investment. The expansion also added a five-percent bonus for investments in businesses located in a qualified opportunity zone, low-income community, or a business that is certified by the State as minority- or women-owned.
The Angel Investor Tax Credit Program is administered by the NJEDA, with the assistance of the Department of the Treasury’s Division of Taxation. More information can be found at www.njeda.com/angeltaxcredit.