About this programme
The Angel Investor Tax Credit Program is run by the New Jersey Economic Development Authority (NJEDA) to stimulate investment into emerging technology businesses in the state. It is a refundable tax credit paid to the investor, not the company, based on a qualified investment made in an eligible New Jersey emerging technology business.
The credit can be applied against corporation business tax or gross income tax, and pass-through entities can claim it. Because it is refundable, an investor with little or no NJ tax liability can still get value from it.
How it works
The credit is worth 35% of the qualified investment made in a New Jersey emerging technology business, rising to 40% if the business is certified minority- or women-owned (M/WBE) or is located in an Opportunity Zone or New Markets Tax Credit census tract.
The program has a statewide cap of $25 million in credits in any calendar year, plus any unused credits carried over from the Technology Business Tax Certificate Transfer Program.
A qualified investment is a non-refundable cash transfer made directly to the NJ emerging technology business, in exchange for stock, partnership interests, licenses, warrants, options, or similar instruments, which the investor must hold for at least two calendar years.
All investors can participate, including those from out of state or overseas, but every applicant must file a New Jersey tax return for the tax year the application is approved.
Who can apply
The emerging technology business must employ fewer than 150 full-time employees, with at least 75% of them working in New Jersey.
The business must conduct business in New Jersey and perform at least one qualifying activity in-state: research, manufacturing, or commercializing eligible technologies.
The business's primary activity must fall in an eligible category, including Advanced Computing, Biotechnology, Life Sciences, Medical Devices, or Renewable Energy.
Most entities need a Tax Clearance Certificate. Cannabis license holders are not eligible.
How to apply
- Investors must apply within six months of the date of investment; there are no exceptions to this deadline.
- Both the investor and a representative of the technology company must complete and submit their respective sections online at njeda.powerappsportals.us; the application is not considered submitted until both sections are in.
- The investor pays a non-refundable application fee.
- Upload the required transaction documentation to the online application system, or submit it by emailing angeltaxcredit@njeda.com.
- If approved and the investment exceeds $500,000, pay the approval fee (the application fee is credited toward it).
Documents you’ll typically need
- Documentation of the investment transaction
- Tax Clearance Certificate (for most entities)
Frequently asked
How big is the tax credit?
35% of the qualified investment, rising to 40% if the business is M/WBE-certified or located in an Opportunity Zone or New Markets Tax Credit census tract.
How long do I have to apply after investing?
Six months from the date of investment, with no exceptions.
Who has to submit the application?
Both the investor and a representative of the technology company; the application isn't considered submitted until both sections are completed.
How much is the application fee?
$500 for investments of $50,000 or less, and $2,500 for investments above $50,000.
Is there an additional fee if my application is approved?
Yes, for investments over $500,000: a 5% approval fee on the approved tax credit amount, with the application fee credited toward it.
Can out-of-state or overseas investors use this credit?
Yes, as long as they file a New Jersey tax return for the tax year the application is approved.
More funding in New Jersey
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All 12 programmes in New Jersey →
Reviewed 2026-09-25. Programmes change, so check eligibility, amounts and deadlines on the official page before you apply. CapEasy is a private firm and is not part of any government body.