Translate
Facebook
X
Instagram
LinkedIn
Youtube

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.

NJ FAST

Plug and Play and the New Jersey Economic Development Authority (NJEDA) have launched the NJ FAST accelerator to serve as a Strategic Innovation Center for financial technology (fintech) and insurance technology (insurtech) startups, in partnership with Stevens Institute of Technology and Prudential. This SIC will allow for new entrepreneurs to bring their world-class ideas to New Jersey, further increasing our state’s inherently impressive talent pool, all while capitalizing on the resources and expertise of our partners. NJ FAST is actively seeking corporate members and investors.

Edge Works

New Jersey has developed a vision for strategic innovation in healthcare with the development of Edge Works at SciTech Scity. This approximately 120,000-square-foot life sciences, health care, and tech innovation hub, set within the burgeoning SciTech Scity in Jersey City, represents a remarkable stride in creating a future-focused, inclusive, and sustainable economic landscape. Edge Works tenant companies will benefit from corporate collaboration and with colleges and universities to advance real-world applications for cutting-edge science and technology.

Atlantic County NJ Aerospace

Located in the National Aerospace Research & Technology Park (NARTP) in Egg Harbor Township, the Aerospace Innovation Center (AIC) will provide state-of-the-art aerospace research spaces, high-speed connectivity to the FAA William J. Hughes Center for Advanced Aerospace data systems and laboratories, and co-working and studio spaces that are ideal for collaboration and innovation. Construction for the innovation center is underway. SICs are facilities that, in partnership with corporations, support research and development, innovation, and entrepreneurship through mentorship, networking opportunities, hands-on training, business support services, and education opportunities.

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.

Golden Seeds

Golden Seeds (GS) is a leading national angel investor organization dedicated to empowering female entrepreneurs. With nearly 300 members across the country, GS reviews approximately 1,000 investment opportunities annually. Its portfolio companies benefit from rigorous vetting, hands-on coaching, and strategic advisory support provided by the organization’s investors. Comprised of a dynamic group of both male and female investors, Golden Seeds fosters an environment where innovative, women-led businesses secure the capital and connections needed to thrive, scale, and achieve successful exits.

Golden Seeds actively supports New Jersey’s innovation ecosystem by sourcing and funding female entrepreneurs. The NJ chapter hosts monthly office hours, offering entrepreneurs an initial opportunity to engage with investors. Promising entrepreneurs are sponsored through Golden Seeds’ comprehensive funding pipeline. Companies interested in fostering women-led innovation are encouraged to join Golden Seeds and contribute to the growth of NJ’s innovation ecosystem.

HealthCare Institute of New Jersey (HINJ)

Golden Seeds (GS) is a leading national angel investor organization dedicated to empowering female entrepreneurs. With nearly 300 members across the country, GS reviews approximately 1,000 investment opportunities annually. Its portfolio companies benefit from rigorous vetting, hands-on coaching, and strategic advisory support provided by the organization’s investors. Comprised of a dynamic group of both male and female investors, Golden Seeds fosters an environment where innovative, women-led businesses secure the capital and connections needed to thrive, scale, and achieve successful exits.

Golden Seeds actively supports New Jersey’s innovation ecosystem by sourcing and funding female entrepreneurs. The NJ chapter hosts monthly office hours, offering entrepreneurs an initial opportunity to engage with investors. Promising entrepreneurs are sponsored through Golden Seeds’ comprehensive funding pipeline. Companies interested in fostering women-led innovation are encouraged to join Golden Seeds and contribute to the growth of NJ’s innovation ecosystem.

Newark Alliance

The Newark Alliance is a 501(c)(3) organization of public, private, and nonprofit organizations that drive inclusive economic growth for all of Newark. The organization works to attract companies, retain companies, and support economic activity throughout the city through collaboration with the City, the State, partner organizations, and members. The organization’s work involves placemaking, ecosystem building, corporate partnerships and supporting racial and health equity, as well as quality of life in Newark to make it a live, work, play city for all.

The Newark Alliance fosters an environment that supports homegrown startups, attracts new ones and helps the startups already based in Newark grow. The organization plans for long-term transformative real estate projects that help Newark think big and also help plan for today, such as support in the planning of Newark Tech Week and connecting startups to funders and resources for growth. The Newark Alliance also works to close the digital divide through cementing universal, high speed, and affordable internet access in partnership with the City and Invest Newark.

New Jersey Innovation Institute (NJII)

As an independent, non-profit corporation, NJII is driving innovation across New Jersey by serving as a catalyst between an R1 institution and organizations facing challenges in transformative growth. The NJII team of 100+ staff are currently organized into five cutting edge divisions that guide our initiatives: AI/ML, Defense, Entrepreneurship, Healthcare and Learning & Development.  Through revenue-generating public and private strategic partnerships, NJII provides access to cutting-edge research, state-of-the-art technology, and expert guidance. The Entrepreneurship division also provides Acceleration services (tailored programs for entrepreneurs including mentorship, resources, and networking opportunities) along with the physical resources of the Paul Profeta Center for Innovation and Entrepreneurship, a 110,000 sq. ft. facility.

NJII’s Entrepreneurship division has recently launched a Venture Studio which will make equity investments into participating companies. The Venture Studio will also provide emerging companies with necessary business training, operating services, physical space in Newark, and management guidance to transform their R&D into commercially viable products and services. This includes ongoing engagement with various large partners across New Jersey from multiple business sectors as well as healthcare organizations.

Startup Grind Princeton

Startup Grind Princeton strives to help founders, entrepreneurs, and startups succeed, regardless of geographic location or socioeconomic circumstance. The organization believes a better tomorrow is possible by supporting the innovators and risk-takers of today and is part of the largest global network of startup support in the world with over 600 chapters across over 125 countries.

Startup Grind Princeton hosts monthly startup events to educate, inspire, and connect entrepreneurs with the resources they need. Events include fireside chats, workshops, conferences, and parties.

TechUnited:NJ

TechUnited:NJ is a nonprofit organization dedicated to advancing innovation and economic growth in New Jersey by connecting corporate leaders, startups, investors, and academic institutions. Flagship programs like the 5000-person Propelify Innovation Festival and the Women & Minority Business Owners mentorship initiative position TechUnited as a leading tech community in the State. Its extensive network includes Fortune 500 companies, high-growth startups, service providers, and inventors, fostering collaboration across sectors. TechUnited empowers corporations to innovate, connect with entrepreneurs, and grow by leveraging emerging technologies and business opportunities.
 
TechUnited:NJ strengthens New Jersey’s innovation ecosystem by bridging the gap between innovators and essential resources like mentorship, coworking space, customers, talent, funding, press and advisors. Programs enable companies to discover emerging technologies, advance research, educate talent, build partnerships and invest in regional growth. By engaging with TechUnited, corporations can expand their reach and support for the innovation community by sponsoring mentorship, startup competitions, coworking space access, subsidized memberships, innovation challenges, skill-building workshops, and more.

*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.