Corrado Bill to Boost Investment in NJ’s Innovation Economy Advances

Legislation sponsored by Senator Kristin Corrado that would boost investment in emerging technology start-ups in New Jersey was advanced by the Senate Economic Growth and Senate Budget & Appropriations committees today.

“New Jersey has one of the most highly educated workforces in the nation,” said Corrado (R-40). “What we’re missing is a tax environment that encourages investors to put that talent to work in new tech businesses right here in the Garden State. This legislation helps fix that. I want to thank Assemblyman DePhillips for taking the lead on this important effort.”

Corrado’s legislation, S-2298, increases the tax credit for qualified investments under the “New Jersey Angel Investor Tax Credit Act.”

The bill increases the tax credit available under the act from 10% to 20% of the angel investor’s qualified investment in New Jersey emerging technology companies with fewer than 225 employees, where at least 75% of those positions are located in the state.

The tax credit would increase from 10% to 25% if the business is minority- or woman-owned or located in a distressed area of the state

An emerging business is one that has qualified research expenses paid or incurred for research conducted in the state; conducts pilot scale manufacturing in the state; or conducts technology commercialization in the state in the fields of advanced computing, advanced materials, biotechnology, carbon footprint reduction technology; electronic drive technology; information technology; life sciences; medical device technology; mobile communications technology; or renewable energy technology.

Tax credits awarded pursuant to the Angel Investor Tax Credit Program are considered to be refundable tax credits, and the program is capped at $25 million annually.

“The high tech industries that we’re looking to build in New Jersey are where well-paying jobs will be created in the coming decades,” added Corrado. “If we don’t work to grow our innovation economy here in New Jersey, it will happen somewhere else, and more of our young people and families will be forced to follow.”