“This law will promote investments that provide technology startups with the crucial capital they need to bring their innovative products to the marketplace,” said Andrew Musick, NJBIA’s vice president of Taxation and Economic Development.
“Since the program began in 2013, the program has approved over $220 million in investments made to 51 New Jersey technology and life sciences companies,” Musick said. “By extending the program to holding companies, the Angel Investor Tax Credit Program will be better able to spur investment in New Jersey companies.
“Small science and technology businesses need access to capital to grow, create jobs, and keep New Jersey’s high-tech economy moving forward,” Musick said.
For investments made by New Jersey S corporations, shareholders receiving a distributive credit can claim those credits to reduce gross income tax liability.
Under the program, taxpayers seeking to claim the Angel Investor Tax Credit must receive approval from the New Jersey Economic Development Authority (NJEDA), which is permitted to make up to $25 million in tax credits available for qualified investments.
In 2016, the state approved 251 applications through the program, which represented over $96 million in private capital into technology and life sciences companies throughout the Garden State.