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NEW JERSEY INNOVATION EVERGREEN FUND

CORPORATE TAX CREDIT AUCTION


The New Jersey Innovation Evergreen Fund (NJIEF) is a partnership with the private sector that will raise and invest funds in New Jersey-based companies to address New Jersey’s shortfalls in venture capital funding and create the conditions necessary for entrepreneurs to succeed.

The NJEDA will raise funds for the NJIEF by offering up to $300 million of tax credits over a series of competitive auctions. Corporations have the opportunity to offset their Corporation Business Tax (CBT) or Insurance Premium Tax (IBT) liability in the state up to 25%. The program successfully concluded its 2022 auction and the timing if the next auction is still to be determined. Please check back later for further information about timing of the next program auction. Auction bids will be evaluated according to both bid price and the strategic commitments the bidding company makes to support the state’s innovation ecosystem.

The NJEDA will raise funds for the NJIEF by offering up to $300 million of tax credits over seven years through annual auctions. Auction bids are evaluated according to price to purchase the tax credits and strategic commitments the bidding company makes to support NJIEF’s portfolio companies and the state’s broader innovation ecosystem.

Applicants may submit questions to NJIEF@NJEDA.com.

Competitive Auction Process

  1. Corporations bid on tax credits and put forth a strategic investment into the state
    • Minimum bid: $500,000
    • Auction Floor: To be determined by the Authority ahead of each auction at a price no less than $0.75
  2. The program successfully concluded its 2022 auction and the timing of the next auction is still to be determined. Please check back later for further information about timing of the next program auction.
    • All application refundable deposits are due by the date the application closes.
    • At its discretion, the NJEDA may elect to extend the application period. Applicants may apply here.
  1. Once bids are submitted, they will be reviewed
  2. Following review, you will have the chance to modify and submit your best and final offer
  3. Awards will be allocated on availability based on value of the combined bid.

ELIGIBILITY

To purchase tax credits during the NJIEF auction, a company must: 

  • Request at least $500,00 in tax credits. 
  • Bid at least a price at or higher than the price floor for any given auction. The auction floor price will be determined by the Authority ahead of each auction at a price not less than $0.75.
  • Agree to provide mentorship, networking, and collaboration opportunities to qualified businesses that receive funding under the program, at minimum, in addition to other support of the State’s innovation ecosystem in its bid. 
  • Be registered to do business in NJ and maintain a valid tax clearance certificate

STRATEGIC COMMITMENTS

The tax credit auction is built to both raise capital and increase engagement into New Jersey’s innovation ecosystem, notably, with well-established corporations operating in New Jersey. To help foster engagement and collaboration, all applicants are required to make a strategic commitment to support New Jersey’s innovation ecosystem.

These Strategic Commitments are programs or initiatives put forth by the auction bidders, oriented to categorically support aspects of the New Jersey innovation ecosystem such as investing into people (develop talent), developing the ecosystem (commit to hold start-up events and programs), providing investment (provide resources, access to customer channels or distribution networks, monetary support) and marketing (promote Evergreen and provides public relations support around the support of innovation in New Jersey). Examples of program strategic commitments from the 2022 program auction are available here.

Ultimately, the strategic commitment is an open-ended proposition put forward by the bidder as a unique contribution. These strategic commitments will be evaluated in conjunction with the purchase offer to determine each corporate tax credit bidder score.

  • Program strategic commitments are open ended and may take many shapes. All commitments must support the State’s innovation ecosystem.
  • Auction purchasers must submit an annual report to the NJEDA detailing progress of strategic commitment completion.
  • Successful auction purchasers that must change a strategic commitment due to unforeseen circumstance should contact the NJEDA at NJIEF@NJEDA.GOV

The full statutory text of the program can be found in sections 20-34 of the Economic Recovery Act of 2020. 

P.L.2023, c,118 (S3783) 

Specially adopted Evergreen regulations

Adopted Rules Update

New Jersey Innovation Evergreen Fund- Board Memo

Potential Strategic Engagement Partners

The following resource assists program tax credit purchasers in identifying NJ innovation ecosystem stakeholders to collaborate on program strategic commitments. If you are a NJ innovation ecosystem stakeholder interested in being included on the program website, please contact the program at NJIEF@njeda.gov.


STRATEGIC INNOVATION CENTERS

Strategic Innovation Centers are facilities formed through the cooperation of academia, and public and private enterprise that either directly support research and development (R&D), innovation, or entrepreneurship or are aimed at solving specific problems in new and innovative ways through a combination of services such as mentorship, networking opportunities, hands-on training, business support services, education opportunities, and/or access to testing, fabrication, or manufacturing facilities and equipment.

Strategic Innovation Centers can take many forms such as: accelerators, incubators, research centers, innovative service delivery centers, or multi-tenant innovation clusters. Most have a common goal of being a physical location that brings people together to advance innovation. They are often focused on a specific industry or around solving a specific problem. They build a community cluster of like-minded individuals that collaborate on solving a common problem or advancing a common goal. The ability to coalesce entrepreneurs and innovators at a central location often leads to a quicker time to market and greater success.

BioNJ

BioNJ is the life sciences trade association for New Jersey, representing over 400 research-based life sciences organizations across the healthcare ecosystem from the largest biopharmaceutical companies to early stage start-ups for nearly 30 years. BioNJ is dedicated to ensuring a vibrant ecosystem where Science is Supported, Companies are Created, Drugs are Developed and Patients Have Access to Lifesaving Medicines. BioNJ works directly with policymakers in both Trenton and Washington D.C. to advance the life sciences industry, foster medical innovation and ensure health equity and healthcare affordability. With innovation as the driving force behind medical breakthroughs, BioNJ’s mission is to help its members help patients by providing transformative resources, including access to government and industry leaders, capital and State incentives, timely educational programs, skilled talent and a value-driven purchasing program.

 BioNJ supports NJ’s innovation ecosystem through networking, education, partnering programs, advocating for policy, and connecting members to valuable resources across the ecosystem to facilitate formation, funding, and growth of innovative companies. BioNJ organizes an annual BioPartnering Conference which offers entrepreneurs the opportunity to pitch for funding, participate in partnering meetings with industry, and network with investors, industry partners, academia and government representatives from across the life sciences ecosystem. The organization is also planning a BioNJ AI & Digital Health Day, to provide education, real world examples of AI & digital health implementation in the life science industry, and opportunities for early-stage innovation companies to present and highlight the various types of innovation taking place in the industry today. In addition to a full calendar of events taking place throughout the year, BioNJ also organizes the Entrepreneurs Exchange, a “meetup” for life science founders to connect, network, and learn from each other and from industry leaders in our community. Many of the organization’s programs are supported by the generous contributions of our member organizations, and BioNJ welcomes new opportunities to partner and support the life science innovation ecosystem in New Jersey.

*The NJEDA does not review, endorse, or recommend any of the (above/ below) listed stakeholders for participation in the NJ Innovation Evergreen Program. The NJEDA makes no representation that the listed stakeholders will meet the requirements of the NJ Innovation Evergreen Program nor that those applications submitted for participation in the NJ Innovation Evergreen Program which include proposals that incorporate the stakeholders listed here will be successful. This list is provided for informational purposes only and each applicant should do its own due diligence prior to engaging a stakeholder.