May 1, 2017

New Jersey Expands Eligibility Under the State’s Angel Investor Tax Credit Act

Today, Governor Chris Christie signed into law a bill revising the “New Jersey Angel Investor Tax Credit Act.” (See P.L. 2017, c. 40). The legislation has been revised to provide tax credits for qualified investments in New Jersey emerging technology business holding companies. Previously, holding companies were ineligible to receive investments under the program. The legislation further provides direction for the distribution of tax credits allowed for qualified investments by New Jersey S corporations.

The New Jersey Angel Investor Tax Credit Program, which is administered by the New Jersey Economic Development Authority (“NJEDA”), allows for a tax credit against the corporation business tax and the gross income tax for qualified investments in a New Jersey emerging technology business. Under the Program, the tax credit is equal to 10 percent of the qualified investment made by the taxpayer, up to a maximum of $500,000 for the tax year for each qualified investment made by the taxpayer. The NJEDA is permitted to approve $25 million per calendar year in connection with qualified investments.

The legislation takes effect immediately, but applies retroactively to qualified investments made for tax years and taxable years beginning on or after January 1, 2012.

Murphy Schiller & Wilkes LLP (MSW) is a boutique law firm servicing the commercial real estate and construction industries. Headquartered in Newark, New Jersey, the firm services the commercial real estate and construction industries. Through the development of comprehensive legal strategies, our team works tirelessly to create a blueprint for success and advance our clients’ interests in every matter.