The New Jersey Business and Industry Association, a pro-business lobbying group, has called for an expansion of eligibility for the state’s Angel Investor Tax Credit program.
Legislation before the Senate Budget and Appropriations Committee would expand eligibility for the existing tax credit on corporate business tax returns to the holding companies of qualified New Jersey emerging technology businesses, instead of requiring investors to provide funding directly to the subsidiary. The bill would also allow owners of an S corporation making a qualified investment in emerging technology to claim angel investor tax credits on personal income tax returns.
“Expanding the Angel Investor Tax Credit program will make it easier for companies to raise the capital they need to take their high-tech innovations from the laboratory to the marketplace,” said Andrew Musick, NJBIA’s director of taxation and economic development. “This legislation will help sustain New Jersey’s status as an innovation leader by giving our state’s small science and technology businesses better access to capital so they can grow,” Musick said.