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.