Potential 15% Increase in NJ Angel Investor Tax Credit Program

March 20, 2018

By Bill Beiermeister, CPA and Ryan Silva, CPA, CFE, CVA

In January 2013, Governor Chris Christie signed legislation creating an angel investor tax credit program to spur job creation and growth in New Jersey’s current and next generation of high-skill, high-wage emerging technology industries.

Under the current program New Jersey offers a 10% investor tax credit for an individual that invests in a New Jersey emerging technology company up to a maximum of $500,000 for the tax year for each qualified investment made. A New Jersey Emerging Technology Company is defined as a company with fewer than 225 employees of whom at least 75% are filling a position in NJ and which has qualified research expenses paid or incurred for research conducted in this State; conducts pilot manufacturing in the state or conducts technology commercialization in the state in the fields of:

Advanced computing
Advanced materials
Biotechnology
Electronic device technology
Information technology
Life sciences
Medical device technology
Mobile communications technology
Renewable energy technology

Two new bills, S2298 and A3677, introduced by the New Jersey legislature would increase the angel investor tax credit program from 10% to 25% for qualified investments. This increase, if approved, would be retroactive to January 1, 2018 investments.

Bill is a Manager in Wiss & Company’s Middle Market Commercial practice group. For any questions on this program please contact Bill at [email protected] or 973-994-9400.

Click here for details on the original bill signed in 2013.