Corporation Business Tax
Gross Income Tax
Angel Investor Tax Credit Act
(P. L. 2013, c. 14)
On January 31, 2013, Governor Chris Christie signed into law the “New Jersey Angel Investor Tax Credit Act,” which is intended to encourage investment in New Jersey emerging technology businesses. Such businesses include advanced computing, advanced materials, biotechnology, electronic device technology, information technology, life sciences, medical device technology, mobile communications technology and renewable energy technology.
The new law provides for a tax credit of up to 10 percent of the angel investors’ qualified investment in New Jersey emerging technology companies with fewer than 225 employees, where at least 75 percent of those positions are located in New Jersey. The State will refund the excess credit to an individual taxpayer. A corporate taxpayer can choose to either receive a refund of the excess credit or carry over the excess credit for 15 years.
Under the Act, credits will be provided against corporation business tax and gross income tax for investments in New Jersey emerging technology businesses for privilege periods or taxable years beginning on or after January 1, 2012.
The New Jersey Economic Development Authority in consultation with the Director of the Division of Taxation will approve taxpayer applications for the credit. There is a $25 million cap annually on all credits that the Economic Development Authority will approve and the credits are limited to $500,000 per investment.