Completed applications for the Angel Investor Tax Credit Program are due from investors by 11:59 pm on June 30, 2014 for qualified investments made from the period beginning January 1, 2012 through July 1, 2013. Other qualified investments require a completed application within one year of the date of the qualified investment.
The Angel Investor Tax Credit Program was signed into law by Governor Christie in January 2013. The program provides a 10% refundable tax credit against New Jersey corporation business or gross income tax for qualified investments in an emerging technology business with a physical presence in New Jersey. The business must conduct research, manufacturing, or technology commercialization in the state.
The program is administered by the EDA in consultation with the New Jersey Division of Taxation and is available to taxpayers (including out of state investors) who invested in an emerging technology business in calendar year 2012 or after.
Results of the program to date as noted by the EDA, “Since EDA began accepting applications to the program in July, thirty three (33) investments have been approved representing the injection of $15.4 million of capital into New Jersey technology and life sciences companies. Businesses that benefited in 2013 include New Providence-based Edge Therapeutics, Inc. and Princeton Power Systems of Lawrenceville.”
Qualifications for the program as stated by the EDA, “To qualify, technology businesses must employ fewer than 225 employees, 75 percent of whom must work in New Jersey. Businesses must also conduct at least one of the following in New Jersey: incur qualified research expenses; conduct pilot scale manufacturing; or commercialize an eligible technology. Eligible technologies include: advanced computing, advanced materials, biotechnology, electronic devices, information technology, life sciences, medical devices, mobile communications, and renewable energy technology.
Maximum tax credit is $500,000 per each qualified investment, and the total program is subject to an annual cap of $25 million.”
For more information regarding the Angel Investor Tax Credit Program or to apply, visit www.njeda.com/angeltaxcredit.
