PolitickerNJ Wire Feed

By Trish Graber | January 31st, 2013 - 5:18pm
| More

Will Provide Tax Credits To Investors in Emerging Technology Businesses

TRENTON – Legislation sponsored by Senator Fred Madden, Majority Leader Loretta Weinberg and Senator Paul Sarlo that would provide a tax credit incentive for investment groups and individuals to provide capital to emerging technology businesses has been signed into law.

Also known as the “New Jersey Angel Investor Tax Credit Act,” the law (S-581) creates specific gross income and corporate business tax credits for start-up investments of up to $500,000 made in New Jersey-based high-tech and biotechnology companies. So-called “angel investors” are individual entrepreneurs – or groups – who provide the massive capital investments that start-up technology businesses need to get up and running.

“In order for New Jersey to remain competitive in attracting high-tech and biotechnology companies, we must ensure that our policies remain cutting edge,” said Madden (D-Gloucester/Camden). “Paired with our highly skilled workforce, this program will provide the boost we need to attract investment to the Garden State, which will help to grow our economy and create high-paying jobs for our residents.”

“The capital provided by equity investors can help create the kinds of new and innovative technologies that have made New Jersey a world-wide leader in the past,” said Weinberg (D-Bergen). “The economic climate in New Jersey is still not satisfactory and we need take action now to fix it. These kinds of tax credits are really a matter of common sense. They provide the right kind of incentive to get people to invest in New Jersey’s science and technology driven businesses, in turn creating much needed jobs.”

According to a 2008 report from the Angel Capital Education Foundation, more than 20 states have implemented programs to attract or retain investment capital through income tax credits in the past decade with the belief that the reduced risk and cost of investing will encourage more entrepreneurial activity in high-growth small businesses and ultimately attract investment dollars, create jobs, and contribute to the economic growth of the state.

“Taking an idea from the drawing board to reality takes talent and perseverance on one hand, and money in the other," said Sarlo (D-Bergen/Passaic). "Without 'angel investors,' many of the world's great advances would still just be ideas. If we are to grow economically, we need to provide the incentive for investors to reach out and connect with those ideas.”

Because the science and technology sectors have a high potential for growth and are identified as creators of high-paying jobs, they are an ideal candidate for sector specific tax credits. New Jersey has historically been one of the top destination states for science and technology companies. However, other states have been gaining ground in recent decades. This law will help spur investment and growth in science and technology, allowing New Jersey to maintain its position as a hub for these sectors.

Contact Info: 

Trish Graber

NJ Senate Democratic Office

609-847-3700

www.njsendems.com

The Back Room

Christie defends himself in NH

Zapped by the DNC on his way into New Hampshire this afternoon, Gov. Chris Christie defended his economic record while wooing NH voters for the second time in little more than a month, according to the Associated Press.

Read More >

Wake-Up Call

Morning Digest: July 31st

  Christie to Newark hecklers: 'I've spent as much time in Newark as anyone else' BELMAR - Gov. Chris Christie's got nothing but love for The Brick City, or so he says. In response to a Newark school student here today -- a 17-year-old president of the Newark Student Union...

Op-Ed

The health of New Jersey's women is not Chris Christie's priority

By Linda Stender At his most recent town hall, Gov. Chris Christie accused his predecessors of "monkeying with the math" when it comes to their handling of our state's economy. But as the old saying goes, when the governor points a finger, he... Read More >

Contributors

(7-30-14) Who Is Best Equipped to Decide the Fate of the Common Core? - The latest Christie controversy surrounds his Executive Order to revamp the state’s academic... more »
 The following letter was sent today to Republican state legislators, county chairs, state committee members, and New Hampshire... more »
The Perry-Paul Debate is Healthy for the GOP – and for America  The foreign policy debate in the media between prospective GOP Presidential candidates Texas Governor Rick Perry and... more »
(Washington DC)-- Two recent votes on Capitol Hill suggest an overdue and radical departure from our nation's Draconian and costly War on Drugs.  It's a long-overdue discussion (and not just... more »

Quote of the Day

quote of the day

"Go to Mayor [Cory] Booker and ask him if he thinks in the years that he was mayor if I ignored Newark. The fact is I've spent as much time in Newark as anyone else." - Gov. Chris Christie

- PolitickerNJ

Poll

Who's right on the bail reform special session?:

Blogroll

Visit the PolitickerNJ.com/resources page for links to the best collection of information on New Jersey state government.

 

  • Polls
  • The best blogs
  • Columnists
  • State election results
  • Assembly election results
  • Local party websites
  • And more.

PolitickerNJ.com/resources