Legislation expanding the credit was released from the Senate Economic Growth Committee earlier today.
“Small and emerging technology companies will help drive New Jersey’s economy today and into the future, and these companies put a high priority on being able to access capital,” said Andrew Musick, NJBIA director of Taxation and Economic Development. “Expanding the Angel Investor tax credit program would make it that much easier for companies to raise the capital needed to take an idea from the laboratory to the market.
Specifically, the bill would expand eligibility to include investments in the holding companies of qualified New Jersey emerging technology businesses.
Angel investors would be able to invest in emerging technology through the holding companies that control those businesses, rather than requiring investors to identify a means of providing funding directly to the subsidiary business.
Also, when an S corporation makes a qualified investment in an emerging technology, owners of that company could claim their tax credits on their own personal income tax returns.
The recommendation was included in the 2010 NJPRO report “Building Bridges Between Academic Institutions, Business and Government to Bring Innovation to the Marketplace.”