The New Jersey Angel Investor Tax Credit Program permits parties investing in New Jersey “emerging technology businesses” to take a partial credit for the funds used, and either offset the credit against their New Jersey income or receive the credited amount outright. The program provides an added benefit for investments in qualified companies, and additional reasons for qualified companies to establish their businesses within the state.
The New Jersey Angel Investor Tax Credit Act was signed into law on Jan. 31. The act provides qualified investors a 10 percent tax credit for their investments in New Jersey emerging technology companies. The credit is available for tax years beginning on or after Jan. 1, 2012, meaning the credit can be sought retroactively if a qualified investment was made in 2012. The maximum credit available in any given year to one taxpayer is $500,000. Investors need not be New Jersey residents, or even have a New Jersey tax liability, to receive the credit; if no tax liability exists, the amount can simply be refunded to them (as described in more detail below).
