Press Release
July 14, 2021
3 minute read

NJEDA Board Approves Proposed Amendments to Expand Angel Investor Tax Credit Program

Trenton, N.J. (July 14, 2021) – The New Jersey Economic Development Authority (NJEDA) Board today approved proposed amendments to the state’s Angel Investor Tax Credit Program rules that will help fuel investments into early-stage New Jersey technology companies and bolster New Jersey’s innovation economy. The amendments were based on expansions and revisions made to the program by both the Economic Recovery Act of 2020, which was enacted in January 2021, and legislation signed into law by Governor Phil Murphy in 2019. Concurrently, the NJEDA Board also approved publishing the proposed amendments in the New Jersey Register for a 60-day public comment period.

The New Jersey Angel Investor Tax Credit Program, which is open to both in-state and out-of-state investors, was created in 2013 to incentivize investment into emerging New Jersey technology businesses. An investor can receive a refundable tax credit equal to a percentage of their qualified investment made in a New Jersey early-stage company. This company’s primary business must be an eligible technology which are advanced computing, advanced materials, biotechnology, carbon footprint reduction technology, electronic device technology, information technology, life sciences, medical device technology, mobile communications technology, or renewable energy technology. In addition to commercializing one of these eligible technologies, the business receiving the investment must employ fewer than 225 employees, at least 75 percent of whom work in New Jersey. An investment in a New Jersey emerging technology business holding company may also meet the requirements for a qualified investment.

Since the program’s inception, the NJEDA has approved 1,671 applications totaling more than $616 million invested in 102 eligible New Jersey businesses. In the first quarter of 2021 alone, 207 Angel Tax Credit Program applications were approved for a total of $5.2 million in tax credits, representing the injection of nearly $33 million into 17 emerging companies.

“Under Governor Murphy’s leadership, we have prioritized recapturing New Jersey’s role as a leader in innovation in an equitable and inclusive manner,” said NJEDA Chief Executive Officer Tim Sullivan. “The amendments approved today will ensure that we continue to help early-stage companies attract the capital they need to further their research and development or to manufacture or commercialize their technology. This, in turn, will lead to the creation of highly-skilled jobs that are necessary to support new business growth.”

Examples of proposed rule amendments approved today stemming from the Economic Recovery Act include:

  • Increasing the amount of tax credits available annually under the program from $25 million to $35 million.
  • Expanding the definition of a qualified investment to include investment commitments made into qualified venture funds. “Venture fund” means a partnership, corporation, trust, or limited liability company that invests cash in a business during the early or expansion stages of a business in exchange for an equity stake in the business in which the investment is made. “Venture fund” may include a venture capital fund, a family office fund, or a corporate investor fund, provided that a professional manager administers the venture fund.
    • For an investment commitment to a venture fund be eligible as a qualified investment, the venture fund must be a “qualified venture fund” investing a minimum of 50 percent of the venture fund’s committed capital in New Jersey based businesses. In addition, a five percent bonus is available if the fund invests 50 percent of its funds in New Jersey diverse entrepreneurs.

The following additions were also made to the Angel Investor Tax Credit Program rules. These updates are associated to legislative actions from 2019 which have already been implemented into the current Program:

  • Increasing the amount of tax credits available per qualified investment in an emerging New Jersey technology business from 10 percent to 20 percent.
  • Adding a five percent bonus credit for qualified investments made in a New Jersey certified minority-or women-owned technology business or a technology business that is located in a qualified Opportunity Zone or New Markets Tax Credit Census Tract.

These amendments approved today will be published in the New Jersey Register on September 7 for a 60-day public comment period.

In addition to the expanded Angel Investor Tax Credit program, the Economic Recovery Act creates and/or enhances a suite of programs that includes tax credits to incentivize job creation, new construction, and revitalization of brownfields and historic properties; financial resources for small businesses; support for new supermarkets and healthy food retailers in food desert communities; new funding opportunities for early-stage companies in New Jersey; and support for the growing film and digital media industry. More information about these programs is available at

About the New Jersey Economic Development Authority

The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.

To learn more about NJEDA resources for businesses call NJEDA Customer Care at 609-858-6767 or visit and follow @NewJerseyEDA on FacebookTwitterInstagram, and LinkedIn.



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