Startup Investment and Research & Development Programs
New Jersey can help your company find the capital and investments it needs.
New Jersey Angel Investor Tax Credit Program
The New Jersey Angel Investor Tax Credit Program offers a big boost to companies investing in the state’s technology sector. Qualifying investments receive a 20% tax credit, rising to 25% if the enterprise is located in an Opportunity Zone or holds M/WBE certification. The program, now with a $35 million annual cap, is part of New Jersey’s effort to drive innovation and growth in key technology areas.
For
Provides tax credits against corporation business or gross income taxes based on qualified investment in New Jersey’s emerging technology.
Benefit
20% of the qualified investment made in an NJ emerging technology business, with a potential increase to 25% if the business is certified M/WBE or located in an Opportunity Zone or New Market Tax Credit Census Track.
Details
The New Jersey Angel Investor Tax Credit Program establishes tax credits against corporation business or gross income taxes based on qualified investment in New Jersey’s emerging technology businesses to stimulate investment. The Economic Recovery Act signed by Governor Murphy in January 2021 has increased the annual program cap to $35 million from $25 million in tax credits.
The amount available: 20% of the qualified investment made in an NJ emerging technology business, with a potential increase to 25% if the business is certified M/WBE or located in an Opportunity Zone or New Market Tax Credit Census Track.
New Jersey Evergreen Fund
For entrepreneurs and innovative startup companies, the New Jersey Evergreen Fund provides up to $5 million in investment capital, with an additional opportunity for qualifying businesses to receive up to $6.25 million.
For
Qualifying New Jersey-based entrepreneurs and innovative startup companies.
Benefit
Proposed Qualified Businesses may access up to $5,000,000 of program investment capital for equity investments, or $6,250,000 for State- certified women or minority businesses, New Jersey university spin-offs, or businesses that utilize intellectual property developed at a New Jersey university that is core to its business model.
Details
The New Jersey Innovation Evergreen Fund Program forms a platform to facilitate private sector engagement that will raise and invest capital in qualified New Jersey-based companies and promote strategic collaboration in the state’s innovation economy.
All program investments will be matched by an investment from a Qualified Venture Firm that will manage the Authority’s capital through a special-purpose vehicle. Qualified Business applications will be reviewed by staff on a rolling basis and will be presented to the Board of the Authority for approval.
Net Operating Loss (NOL) Program
New Jersey’s Net Operating Loss (NOL) program is aimed at technology and life sciences companies navigating the challenges of innovation. The program converts net operating losses and R&D tax credits into immediate cash benefits. With an annual cap of $75 million and a company lifetime cap of $20 million, the program is designed to fuel continued innovation and growth.
For
Companies in New Jersey with a net operating loss carryover and/or R&D tax credits in New Jersey and have no positive net operating income for the last two years.
Benefit
Tech and life sciences companies can sell their New Jersey net operating losses and/or research and development (R&D) tax credits for cash. The program is subject to an annual cap of $75 million. Companies participating in the program are subject to a lifetime cap of $20 million.
Details
To participate in the NOL Program, a company must:
Have protected and proprietary intellectual property (PPIP that is exclusive to the applicant company).
Employ up to 225 full-time employees that live and work in the United States and who receive health care coverage. At least a portion of these employees must live and work in New Jersey.
Have net operating loss carryover and/or R&D tax credits in New Jersey.
Have NO positive net operating income for the last two years.
File Corporate Business Tax returns in New Jersey.
The NJEDA works with the NJ Division of Taxation to determine awards given through the NOL Program. The program is subject to an annual cap of $75 million. Companies participating in the program are subject to a lifetime cap of $20 million.
