The New Jersey Economic Development Authority (NJEDA) announced the opening of the first of up to five annual New Jersey Corporate Tax Credit Auctions Aug. 5, which it says will fuel the next phase of the New Jersey Innovation Evergreen Fund (NJIEF).
The fund was launched to increase access to venture capital in New Jersey, supporting entrepreneurs while ensuring more companies, start, grow and stay in the Garden State. For this auction year, a pilot amount of $30 million of tax credits will be available for purchase.
The NJEDA says that amount of available tax credits may increase based on demand. The funds raised will later be matched by venture capital firms and invested into high-growth, early-stage businesses across New Jersey, which officials also say will help drive the state’s burgeoning innovation economy and ecosystem.
Totally into it
NJBIZ chronicled the state’s efforts to drive innovation in June:
Programs and projects around the state are working to build Gov. Phil Murphy’s economy ecosystem, hoping to recapture New Jersey’s role as a leader in innovation while also creating a diverse and inclusive environment. Read more.
“The NJIEF is a unique model for driving investment and other resources for bolstering the success of startup companies,” said NJEDA Chief Executive Officer Tim Sullivan. “Through the NJIEF, successful New Jersey corporations will help to nurture and elevate the next generation of high-growth businesses.”
The NJIEF was designed to incentivize investment in emerging Garden State companies while creating opportunities to help the companies be successful.
“New Jersey has vast appeal for businesses seeking top talent, a thriving innovation community, and a prime location, and the NJIEF will be an additional tool for attracting corporations and startups choosing to start and grow within our state,” said Kathleen Coviello, NJEDA chief economic transformation officer. “We look forward to seeing the growth that will result from this investment of funding and targeted sharing of intellectual capital.”
One condition for purchasing the tax credits is a commitment to supporting the state’s innovation economy through mentorship, internships, sales and distribution pipeline access, and availability to serve on the NJIEF advisory board for one year.
“This will lead to job creation and scientific breakthroughs, and will help to deliver on Gov. Phil Murphy’s commitment to recapturing New Jersey’s global leadership position in innovation and creating the most diverse and inclusive innovation ecosystem in America,” Sullivan added.
Completed applications, including a refundable deposit, must be received by Oct. 7, 2022. Full details on the NJIEF can be found here.