Funded by internal resources (currently at $2 million), these programs offer growth capital to be leveraged with angel investments and venture capital investments. Funding under these programs can be used for key hires, product iteration/rollout, product enhancement or marketing/sales.
All investors that invest in a qualifying NJ emerging technology business may benefit from a tax credit through the Angel Investor Tax Credit Program.
10% of the qualified investment made in a NJ emerging technology business, up to a maximum allowed credit of $500,000 for each qualified investment
Qualified investment in a NJ emerging technology business
Credits against corporation business or gross income taxes, Stimulates investment in NJ emerging technology businesses
NJ emerging technology business must employ fewer than 225 employees, at least 75% of whom work in New Jersey. See more detailed eligibility criteria below
Applicants have six months from date of investment to submit an application to the New Jersey Economic Development Authority. Please note that this is a dual application consisting of an investor section and a section for the technology company representative to complete. An application is not considered submitted until both the investor and technology company representative have completed and submitted their respective sections, including payment of the non-refundable application fee by the investor.
Up to $25 million of Angel Investor Tax Credit may be approved per calendar year. If the cumulative credits claimed by taxpayers exceed the amount available in a given year, then credits will be applied in the order in which applications are received and complete, starting on the first day of the succeeding calendar year in which Angel Investor Tax Credits do not exceed the amount of credits available.
To be eligible, the New Jersey emerging technology business must meet the following 4 criteria:
Fees apply and are non-refundable unless otherwise stated.
* Any proposed amendments to the program rules can be found on the Proposed New Rules/Amendments page
To answer any questions you may have, please first consult with the program videos and links provided above, including the “Frequently Asked Questions.” If this does not answer your questions, please email your questions and contact information to AngelTaxCredit@njeda.com.
Administered by the EDA, this program enables unprofitable technology and biotechnology businesses with fewer than 225 US employees (including parent company and all subsidiaries) to sell unused percentage of Net Operating Losses and Research and Development Tax Credits to unaffiliated, profitable corporate taxpayers in New Jersey for at least 80 percent of the value of the tax benefits. This allows unprofitable technology and biotechnology businesses to turn their tax losses and credits into cash.
Fees apply and are non-refundable.
Program Video Presentations: https://youtu.be/ed-wbT2tu1w
* Any proposed amendments to the program rules can be found on the Proposed New Rules/Amendments page
Please email your questions and contact information to NOL@NJEDA.COM. All emailed questions and their responses are considered public knowledge. The questions and responses are reviewed by the deputy attorney general's office and posted in the program's “frequently asked questions” (link above).
NJ Founders & Funders is organized by the NJEDA Technology & Life Sciences (TLS) team to facilitate warm introductions between emerging New Jersey TLS companies and sophisticated angel & institutional investors. Our mission is to help grow the TLS ecosystem to support innovative NJ companies. Hosted twice per year, venture capital investors are invited to meet with a select group of companies for 10-minute, one-on-one sessions to discuss strategy, business models and funding opportunities.
The NJ CoVest Fund provides seed funding to New Jersey technology and life sciences companies to further commercialize their technology and scale revenues. Investments made through the NJ CoVest Fund align with the EDA’s ongoing strategy of supporting New Jersey’s entrepreneurial ecosystem.
Commitment to New Jersey:
Division of Taxation Tax Clearance Certificate required. Certificates may be requested through the State of New Jersey’s Premier Business Services (PBS) portal online.
The Edison Innovation Fund seeks to develop, sustain, and grow technology and life sciences businesses that will lead to well-paying job opportunities for New Jersey residents.
Financing under the following programs is subject to available funding:
EDA forms collaborative partnerships with venture capital fund managers active in New Jersey’s Technology and life science community. Our venture partners leverage EDA investment to increase funds available for emerging technology & life sciences companies to grow and create jobs in the State.
EDA’s average historical commitment is $2.6 million since program inception. Qualifying commitments may be up to $10 Million, or 10% of the total fund size.
Investment in early-stage technology and life science companies with revenues, generally, less than $3 million
EDA Venture Fund Investment Activity:
To date, EDA has committed over $48 million to 14 venture capital funds since 1999. Cumulatively, these partner funds invested approximately 6x the EDA’s investment into more than 60 New Jersey early-stage technology and life science companies. Including other third party investors, companies in the EDA venture fund portfolio have received $2.3 billion of funding and employed almost 2,000 full time employees as of December 31, 2016.
Current and historic venture fund partners include:
As necessitated by the long-term investment horizon of venture capital, EDA seeks to maintain active investment partnerships deploying capital across market cycles. As part of the Edison Innovation Fund, EDA has implemented guidelines to ensure that its venture capital investments consistently support the success of emerging technology companies in New Jersey. These guidelines set forth a strategy for staff to review and assess qualifications for venture capital fund commitments in a consistent and equitable manner.
Venture fund managers seeking EDA investment will apply through the online application. Applications will be assessed and scored using the guidelines outlined below:
At all times, the potential for a limited partnership investment from EDA, is subject to the available resources for a 10-15 year fund life.
Application and Policy:
Grow NJ is a powerful job creation and retention incentive program that strengthens New Jersey’s competitive edge in the increasingly global marketplace. Businesses that are creating or retaining jobs in New Jersey may be eligible for tax credits ranging from $500 to $5,000 per job, per year; with bonus credits ranging from $250 to $3,000 per job, per year (award amounts vary based on applicable criteria.)
Award amounts vary based on applicable criteria. Please see “Base Calculation of Tax Credits” and “Bonus Criteria” below for more information
Corporate business and insurance premiums tax credits
Powerful job creation and retention incentive program that strengthens New Jersey’s competitive edge against tax incentive programs in surrounding states
Please see program details below for full eligibility criteria. Please see mapping tool to determine if your project location is eligible.
In order to qualify for consideration for Grow NJ, a company must:
|Industry||New / Retained Full-time Jobs|
|Tech startups and manufacturing businesses||10 / 25|
|Other targeted Industries||25 / 35|
|All other businesses/industries||35 / 50|
|Project Type||($/Square Foot of Gross Leasable Area)|
|Industrial, Warehousing, Logistics and R&D – Rehabilitation Projects||$20|
|Industrial, Warehousing, Logistics and R&D – New Construction Projects||$60|
|Other – Rehabilitation Projects||$40|
|Other – New Construction Projects||$120|
Tax Credit Amounts Available:
Qualified eligible businesses receive tax credits per job, per year for a period of up to ten years for each new or retained full-time job to be located at the qualified business facility. The maximum amount of the tax credits to be applied by the business annually is generally determined as follows: a gross amount per job/per year is obtained by adding all applicable bonuses to the base amount; the gross amount is then subject to a cap. 100% of the gross amount per new job is allowed, whereas (subject to certain exceptions) retained jobs receive the lesser of the capital investment divided by 10 divided by the sum of the new and retained full-time jobs in the project or 50% of the gross amount per retained job is allowed. Finally, the total amount of annual tax credits is subject to a maximum cap.
In addition, for each application for tax credits in excess of $4 million annually, the amount of tax credits available to be applied by the business annually shall be the lesser of the permitted statutory maximum amount or an amount determined by the EDA necessary to complete the project, which shall be determined through staff analysis of all locations under consideration by the business and all lease agreements, ownership documents, or substantially similar documentation for the business’s current in-State locations and potential out of State location alternatives.Base Calculation of Tax Credits
|Project Type||Base Amount Per New or Retained FT Job, Per Year||Gross Amount Cap Per New or Retained FT Job, Per Year||Maximum Cap To be Applied by the Business Annually|
|GSGZ Project||$5,000||$15,000||$30,000,000 ($35,000,000 – GSGZ- Camden/Atlantic City GSGZs)|
|Garden State Create Zone (NJ Doctoral University)||$5,000||$12,000||$10,000,000|
|Urban Transit Hub Municipality||$5,000||$12,000||$10,000,000|
|Priority Area||$3,000||$10,500||$4,000,000 * Not more than 90% of business withholdings|
|Other Eligible Area||$500||$6,000||$2,500,000 * Not more than 90% of business withholdings|
Generally applicable bonuses are listed below:Bonus Criteria
(*Summarizes bonus types most widely available.)
|Bonus Amount Per Job, Per Year|
|Deep Poverty Pocket or Choice Neighborhood Transformation Plan Area||$1,500|
|Qualified business facility in a vacant commercial building having over one million sq. ft. of office or laboratory space available for occupancy for a period of over one year (qualified buildings listed here).||$1,000|
|Project location at or within a three-mile radius of the campus or satellite campus of a New Jersey college or university other than a doctoral university, and the facility is used by the business to conduct a collaborative research relationship with the college or university||$1,000|
|Qualified incubator facility||$500|
|Mixed-use development with mod. Income housing for min. of 20% of full-time employees.||$500|
|Transit oriented development||$2,000|
|Excess capital investment in industrial site for industrial use - Excludes mega projects.||$3,000 maximum|
|Excess capital investment in industrial site for industrial use - GSGZ projects.||$5,000 maximum|
|Median salary in excess of county’s existing median or in excess of municipal median for GSGZ||$1,500 maximum|
|Large numbers of new and retained full-time jobs:|
|251 to 400||$500|
|401 to 600||$750|
|601 to 800||$1,000|
|801 to 1,000||$1,250|
|Business in a targeted industry (transportation, manufacturing, defense, energy, logistics, life sciences, technology, health, and finance)||$500|
|Exceeds LEED “Silver” or completes substantial environmental remediation||$250|
|Located in municipality in Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Ocean and Salem counties with a 2007 MRI Index greater than 465||$1,000|
|Located within a half-mile of any new light rail station||$1,000|
|Projects generating onsite solar energy of at least 1/2 of the project’s overall energy needs.||$250|
A different tax credit award determination may apply if the project is located in a GSGZ that qualifies under the MRERA (currently Camden) and will create 35 or more jobs new to Camden and make a capital investment of at least $5 million. If so, please contact your EDA Business Development Officer.
Fees apply and all fees are non-refundable except for the approval fee due prior to approval, which shall be refunded if the Authority does not approve the tax credit.
Division of Taxation Tax Clearance Certificate required. Certificates must be requested through the State of New Jersey’s Premier Business Services (PBS) portal online.
Please note: It is the applicant/client’s responsibility to maintain a current and clear tax clearance certificate. If a current and clear certificate is not evidenced to EDA at time of closing, EDA will not proceed with closing.
*** Applications for assistance under the Grow NJ Program must be submitted no later June 30, 2019, except that businesses seeking an award as a Mega Project must apply by September 18, 2017.
Additional terms and conditions pursuant to P.L. 2013, c. 161, as amended, and implementing regulations at N.J.A.C. 19:31-18.1 et seq. apply.
* Any proposed amendments to the program rules can be found on the Proposed New Rules/Amendments page.
Other Important Program Requirements:
A number of statutory tests must be met in addition to basic eligibility and could affect the statutory tax credit award.
One of the pillars of Governor Murphy’s vision of a stronger fairer economy is recreating New Jersey as a home for innovation. Fostering emerging businesses and helping them overcome barriers to commercial success is critical to achieving that vision.
The Incubator and Collaborative Workspace Initiative supports entrepreneurs by providing rent support grants. In addition, this program provides collaborative workspaces with a new tenant attraction tool.
What is the Incubator and Collaborative Workspace Initiative?
What is required of the workspace?
Step 1: Become an Approved Site
A collaborative workspace must first qualify as an approved Incubator and Collaborative Workspace Initiative partner site through a simple online application. To qualify for the program, a workspace needs to:
*Workspaces formed less than 90 days prior to the approval request may qualify for the program on a case-by-case basis, if they have at least 3 signed prospective lease agreements
Step 2: Apply for a Grant
Once a workspace is approved, it can start to market the rent support program to prospective tenants. When the workspace identifies a start-up it would like to offer support to (e.g. provide 1, 2 or 3 months of rent support), the workspace can apply for an EDA grant.
Online grant applications will include basic information about the tenant company (see below) and a signed lease (can be contingent on grant funding) to start within 30 days +/- from grant application submission date).
What is required of the tenant?
Because the grants are intended to support early-stage life sciences and technology companies, the program requirements are very straight forward. To be eligible, a company must:
In addition, the company must certify that they:
How to Apply:
The application for the Incubator and Collaborative Workspace Initiative is still under development. When completed, the application will be accessible from this page, so please continue to check this page for more information.
Questions? If you have any questions about the Incubator and Collaborative Workspace Rent Initiative, please email email@example.com.
For more information about New Jersey’s Business Incubator network visit: www.njbin.org. Following is a list of Business Incubators in New Jersey:
|Rowan College at Burlington County Incubators
High Tech and Life Sciences Incubator
Barbara Witkowski, MPA
100 Technology Way
Mt Laurel, NJ 08054
609-894-9311 Ext. 2804
|Business Development Incubator at NJ City University
Joseph Tetteh, Director
285 West Side Avenue
Jersey City, NJ 07305
|Commercialization Center for Innovative Technology at North Brunswick
Lenzi Harcum, Program Manager
675 US Highway One
N.Brunswick, NJ 08902
|Enterprise Development Center NJIT
Jerry Creighton, Sr., President
211 Warren Street, Suite 109
Newark, NJ 07103
Linda Caruso, Director
160 Chubb Avenue, Suite
Lyndhurst, NJ 07071
|The Business One-Stop Service
Jeffrey Dunn, Director
320 Park Avenue
Plainfield, NJ 07060
|Picatinny Innovation Ctr
Mark Merclean, Executive Director
3159 Schrader Road
Dover, NJ 07801
|Rohrer Biz Incubator
Steve Kozachyn, Director
William G. Rohrer College of Business
107 Gilbreth Parkway, Suite 103
Mullica Hill, NJ 08062
|The Camden CoLab
Suzanne Zammit, Vice President
200 Federal Street, Suite 300
Camden, NJ 08103
|Rutgers Eco Complex
Serpil Guran, Ph.D., Director
1200 Florence-Columbus Road
Bordentown, NJ 08505
609-499-3600 Ext. 225
|Rutgers Food Innovation Center Bridgeton
Lou Cooperhouse, Acting Director
450 East Broad Street
Bridgeton, NJ 08302
856-459-1900 Ext. 4516
|Business Development Center
Roger Boyce, Director
1201 Springwood Avenue
Asbury Park, NJ 07712
Innovation Lab & Incubator-Accelerator
Mukesh M. Patel, Founder & CEO
220 Davidson Avenue
Somerset, NJ 08873