The New Jersey Economic Development Authority (NJEDA) is reminding the investor community that Nov. 1 is the last day to submit applications for the New Jersey Angel Investor Tax Credit Program for the 2021 program year.
All applications received after by 11:59 p.m. on Monday, Nov. 1 will be considered for the 2022 program, the NJEDA said.
The New Jersey Angel Investor Tax Credit Program, which is open to both in-state and out-of-state investors, is designed to encourage and incentivize investment in emerging New Jersey technology businesses. The New Jersey Economic Recovery Act, which NJBIA supported, raised the annual program cap from $25 million to $35 million for 2021.
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% 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 of the time the investment is made.
This is the second year that investors can benefit from the expansion of the Angel Investor Tax Credit. The revisions that took effect on Jan. 1, 2020 increased the tax credit from 10% to 20% on qualified investments. The expansion also added a 5% bonus for investments in businesses located in a qualified opportunity zone, low-income community, or a business that is that is certified 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.