Exciting news for New Jersey’s innovation ecosystem! The state Senate has unanimously passed Bill S-3189, which significantly increases tax incentives for angel investors backing emerging technology startups. The legislation raises the tax credit from 20% to 35% of qualified investments, with a potential bonus up to 40% for investments in low-income areas or certified minority- and women-owned enterprises. While the annual $35 million program cap remains unchanged, the bill also expands eligibility by reducing the maximum employee threshold for qualifying startups from 224 to 149.
This move, strongly supported by New Jersey Business & Industry Association (NJBIA), is designed to drive more capital into high-growth sectors, stimulate job creation, and foster economic activity across New Jersey. Over the past decade, the Angel Investor Tax Credit Program has already incentivized nearly $1 billion in investments. At 1435 Capital Management, we applaud these efforts to support innovation and look forward to seeing the positive impact on the state’s entrepreneurial landscape.
https://njbia.org/senate-passes-bill-to-increase-tax-incentives-for-angel-investors/