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The future of New Jersey’s economy is linked to the state’s ability to attract innovative high-tech companies: the kinds that rely on research and development as much as marketing and sales for their success. That’s why NJBIA has been steadily working to build up New Jersey’s innovation ecosystem for the last six years. That effort continues today through additional tax incentives that directly support innovation.
Last week, the Assembly Commerce and Economic Development Committee approved a bill to extend the Angel Investor Tax Credit program to holding companies that are making investments in high-tech businesses. The bill, A-3631/S-158, would expand the New Jersey Angel Investor Tax Credit Act to allow the tax credit for qualified investments in a New Jersey emerging technology business to also be taken by holding companies that make a verified transfer of funds to their high-tech subsidiary in the same taxable year. In addition, the bill allows for the distributions of tax credits in connection with qualified investments made by New Jersey S corporations. Shareholders receiving a distributive credit may then claim those credits to reduce gross income tax liability.
For details, see my colleague Andrew Musick’s testimony and press release. The bill is now headed to Assembly Appropriations; it has already passed the Senate.
Additionally, the Assembly Appropriations Committee approved a bill that would create tax credits and small business loans for companies that work with and are in close proximity to New Jersey’s five military installations. Under A-2516 defense-related businesses on commercial property within five miles of a military base would be eligible for a tax credit bonus per employee under the Grow New Jersey Assistance Program and eligible for additional small business loans from the New Jersey Economic Development Authority. In addition, the legislation would require the N. J. Department of State to provide businesses near military bases with a single contact person responsible for assisting the company throughout the permit and application approval processes.
For details, see my testimony and press release. The bill is now headed to the Assembly Floor and the Senate version, S-2119, is still in the Senate Economic Growth Committee.
By expanding a tax credit for investing in high-tech startups and creating a friendlier environment for companies around our military installations, New Jersey is specifically investing in our aerospace and defense industries while encouraging new companies to start here. These bills continue our states upward innovation trend to foster collaboration and improve the partnerships between academia, business and government.