Digest Update on Angel Tax Credit Measures: MI Enacts; NJ Gov Vetoes

SSTI recently reported on two important bills passed by lawmakers in Michigan late last year and in New Jersey earlier this year that would provide incentives for taxpayers who invest in emerging technology companies. As an update to the Dec. 8, 2010 and Jan. 12, 2011 stories, both former Michigan Gov. Jennifer Granholm and New Jersey Gov. Chris Christie have taken action on the bills with opposing outcomes. Gov. Granholm signed HB 5921 into law on December 14, enacting a measure to provide a 25 percent personal tax credit for individuals who invest at least $20,000 in qualified seed and early stage companies. Gov. Chris Christie on Friday vetoed S.2454, the New Jersey Angel Investor Tax Credit Act, along with 13 other bills approved by lawmakers in January as part of a jobs package. The bill would have provided a tax credit of 10 percent of a taxpayer's qualified investment in emerging technology companies with less than 225 employees, capped at $25 million annually. Gov. Christie criticized lawmakers for not providing a funding source and unveiled this week a somewhat similar package of tax cuts for business alongside the FY12 executive budget proposal. Read the governor's veto message: http://www.state.nj.us/governor/news/news/552011/pdf/Stack%20of%20Vetoes%20(2.18.11).pdf.