Angel Tax Credit Approvals Drive $63+ Million In NJ Investments For 2023
207 Applications Approved for over $8 Million in Tax Credits to Support Investment in 28 Companies
The New Jersey Economic Development Authority (NJEDA) announced today that 28 emerging New Jersey technology businesses benefitted from $63.2 million in private investment as supported in 2023 by the New Jersey Angel Investor Tax Credit Program (ATC). The NJEDA approved 207 investor applications in 2023, for a total of more than $8.2 million in tax credits, based on a percentage of eligible investment. Approved investments support emerging New Jersey-based companies in the life science, technology, and clean technology sectors. Since the ATC program’s inception in 2013, 2,900 investments totaling $872 million have been approved to support 141 New Jersey companies.
Through the Angel Investor Tax Credit Program, an investor is eligible to receive a 20 percent refundable tax credit by investing in a qualified New Jersey emerging technology business. Eligible companies for investment include those focused on commercializing technologies in 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, the business receiving the investment must employ fewer than 225 employees, at least 75 percent of whom work in New Jersey. There is also a 5 percent bonus for investments in businesses located in a qualified Opportunity Zone or New Markets Tax Credit census track, or a business that is certified by the State as a Minority- or Women Business Enterprise.
Complete eligibility requirements can be found at https://www.njeda.gov/angeltaxcredit. The program is open to investors outside of NJ when investing in a qualified NJ business.
“The ATC continues to drive private investment into promising, emerging New Jersey businesses, following enhancements to the program resulting from Governor Phil Murphy’s signing of the Economic Recovery Act of 2020 in early 2021,” said NJEDA Chief Executive Officer Tim Sullivan. “The ATC is a proven and powerful tool for promoting growth of the state’s innovation sector in an equitable and inclusive manner.”
Of the 28 companies receiving investments, 7 companies are new to the ATC program. Additionally, 10 entities qualified for an additional bonus in credits, including 5 state-certified women or minority business enterprises and 5 businesses located in an Opportunity Zone or New Market Tax Credit census track.
Two companies benefitting from the ATC program in the second quarter of 2023 include EV Edison and Beable Education Inc. The two highlight New Jersey entrepreneurs with a proven record of successful business growth in the state.
Based in Kearny, EV Edison is a leading developer and provider of high-power electric vehicle charging solutions. The company provides a range of innovative stationary and mobile charging along with energy storage solutions for quick, modular on-demand EV charging at any location, along with equipment sales, installation and service, and comprehensive planning and EV charging consultation. EV Edison’s products and services are powered by proprietary cloud-based, utility-grade software. The company received a credit bonus for operation in an Opportunity Zone.
“The ATC continues to be a vital component of EV Edison’s success in attracting investment and delivering innovation to meet New Jersey’s clean energy goals,” said EV Edison President David Daly. “With our partnership with the NJEDA, we are committed to further expanding our New Jersey-based operations while bringing the benefits of clean technology to traditionally underserved communities through workforce development and supplier diversity.”
Based in Lakewood, Beable Education Inc. used capital from the ATC program to support its work on the Beable IQEngine, a proprietary software using machine learning, automation, and data science to create an individualized learning path for each user. The woman-owned company closes the literacy and opportunity gap in education using emerging and innovative technology.
“The ATC has enabled Beable to offer investment attractive terms which, together with our profound mission of helping kids succeed, has served as a magnet for investors,” said Saki Dodelson, CEO of Beable. “Beable is proud to impact the lives of students nationwide through in-school and after-school literacy and career programs, and we thank NJEDA for assisting us in making it happen.”