- The Angel Investor Tax Credit Program, which provides a tax credit for angel investors that support New Jersey businesses. The Economic Recovery Actincreases the legislative cap on this program from $25 million to $35 million for the 2021 program year and going forward.
- The Net Operating Loss Program, which enables unprofitable New Jersey-based technology or biotechnology companies with fewer than 225 employees to sell a percentage of net operating losses (NOL) and research and development (R&D) tax credits to unrelated profitable corporations. The Economic Recovery Act increases the program’s annual cap from $60 million to $75 million. It also increased the lifetime cap for an individual applicant from $15 million to $20 million.
- NJ Ignite, which offers rent support to startups moving to a participating collaborative workspace in New Jersey. NJ Ignite had previously been a pilot program and the Economic Recovery Act made it permanent. Additionally, NJ Ignite will now provide up to $25,000 in rent support to qualifying startups, increased from $15,000 per startup that was provided during the pilot program.
NJ Capital Connections Economic Recovery Act Creates New Jersey Innovation Evergreen Fund, Expands Several Innovation-Focused Programs
According to the NJEDA, the New Jersey Economic Recovery Act of 2020 (Economic Recovery Act), which Governor Phil Murphy signed into law in January 2021, includes a number of new programs and expansions to existing programs that will drive inclusive growth in New Jersey’s innovation ecosystem.One of the most exciting additions is the creation of the New Jersey Innovation Evergreen Fund, which has been hailed as a “game-changer” by investors and entrepreneurs throughout the Garden State. The Fund is an innovative public-private partnership that will use funds raised by auctioning off tax credits to invest in New Jersey-based companies, with returns flowing back into the fund to support additional investments. Learn more about the New Jersey Innovation Evergreen fund here.
The Economic Recovery Act also expanded and improved several existing programs for the technology & life sciences sector. These include:
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