NJ Angel Tax Credit Passes Legislature, Awaits Gov's Action

New Jersey lawmakers last week approved several bills as part of the "Back to Work NJ" economic development and jobs plan proposed by Democratic legislative leaders. Among the measures approved is The New Jersey Angel Investor Tax Credit Act (S.2454) providing incentives to taxpayers who invest in emerging technology companies. Gov. Chris Christie has yet to take action on the package of the bills, which could cost the state up to $805 million in business subsidies and lost corporate tax revenue in the coming fiscal year, reports New Jersey Newsroom.

The angel tax credit bill approved by lawmakers provides a tax credit of 10 percent of a taxpayer's qualified investment in emerging technology companies with less than 225 employees. The credit is capped at $25 million annually. It is unclear as to whether or not the governor supports the measure. In his State of the State Address earlier this week, Gov. Christie said he would not support any tax breaks the state could not afford, reports The Philadelphia Inquirer. Last year, Gov. Christie established a new state agency for all the state's economic development activity — the New Jersey Partnership for Action — and reduced funding for the state's tech-based economic development initiatives to help fill an $11 billion deficit (see the July 14, 2010 issue of the Digest).

On Friday, Gov. Christie signed a bill to revise the state's Business Retention and Relocation Assistance Grant (BRRAG) program, which offers grants to businesses seeking to expand or relocate. Under the new legislation, the program will offer a maximum tax credit of $2,250 per year for six years, per job retained in the state, up from a maximum one-time tax credit of $1,500 per job retained, reports New Jersey Newsroom. The governor is seeking to close a $10.5 billion deficit in the coming year.