The state Senate has approved a bill that aims to enhance tax incentives for angel investors in New Jersey. The legislation, backed by the New Jersey Business & Industry Association (NJBIA), seeks to increase tax credits under the New Jersey Angel Investor law for investments in emerging technology ventures within the state.
Bill S-3189 maintains the $35 million annual cap on the Angel Investor program but raises tax credit values from 20% to 35% for qualified investments in startups or venture funds focused on emerging technologies. Additionally, a 5% bonus could allow investments in low-income community businesses or minority and women-owned enterprises to receive up to a 40% tax credit.
The bill passed with unanimous support, with a Senate vote of 39-0. Senator Andrew Zwicker (D-16) sponsored the legislation.
"NJBIA strongly supports this bill because it incentivizes investments in startups and stimulates innovation in fast-growing industries," said NJBIA Chief Government Affairs Officer Christopher Emigholz. "Investments in emerging technology businesses lead to more than just patents; they spur economic activity and produce well-paying jobs."
Reports from the New Jersey Economic Development Authority indicate that between 2014 and 2023, $113.7 million in Angel Investor Tax Credits were awarded, encouraging nearly $996.4 million in qualified investments during this period.
Under this program, eligible investment tax credits can be applied against corporate business taxes or individual gross income taxes. Furthermore, S-3189 proposes reducing the maximum number of employees an emerging technology business can have from 224 to 149 for investors to qualify for these tax credits.
