Fair and balanced — and innovation economy.
These are the two phrases business leaders have heard the most during the eight years of Gov. Phil Murphy’s administration.
And while there can be plenty of debate on the fair-and-balanced part — were the needs of the business community held at the same level as the wants of other communities? — the administration’s efforts on rebuilding an innovation economy seemingly cannot be challenged.
On Monday, Murphy signed a three-bill package that many feel will help support the state’s innovation ecosystem by enabling entrepreneurs to start and grow their businesses in the Garden State.
The three bills signed Monday impact the following:
Evergreen Innovation Act: Bills A5795/S4619 modify the state’s unique act that is intended to spark more private equity investment. The bills increase the maximum amount of the qualified investment, allowing it to be a venture firm’s second or later investment into a business if it is larger than the first investment or occurs at a higher valuation than the first investment. It also allows the Economic Development Authority to conduct additional tax credit auctions through the program.
Angel Investor Tax Credit Act: Bills A2365/S3189 increase the amount of the tax credit provided under the New Jersey Angel Investor Tax Credit Act. The bill allows the EDA to utilize unused credits from the annual allocation from the Technology Business Tax Certificate Transfer Program to support the award of tax credits under the “New Jersey Angel Investor Tax Credit Act.” It also revises the definitions of “New Jersey-based business” and “New Jersey emerging technology business” to lower the maximum number of employees that a business may employ to qualify for the tax credit.
Qualified Small Business Stock: Bills A4455/S4503, met to impact QSBS, allow exemption from New Jersey gross income of certain capital gains from sale or exchange of qualified small business stock after Dec. 31.
Tim Sullivan, the CEO of the N.J. Economic Development Authority, said the bills are consistent with eight years of policy goals.
“Gov. Murphy and the New Jersey Legislature have consistently recognized the vital role entrepreneurs play in New Jersey’s economy and remain committed to providing them with the resources needed to build and grow successful businesses,” he said.
“The New Jersey Innovation Evergreen Fund and Angel Tax Credit programs have become key NJEDA tools to help bolster early-stage innovation companies, resulting in greater investment into the life sciences, technology, and clean energy sectors.
“The package of bills signed today will increase participation into the programs, unlock capital for entrepreneurs, and spur greater venture investment. Additionally, the QSBS bill perfectly complements the suite of innovation programs built under the Murphy Administration and will encourage entrepreneurs to continue building new businesses in New Jersey. Together, these bills will support new cutting-edge businesses, job creation, and a stronger innovation economy.”
State Sen. Andrew Zwicker (D-Hillsborough) said these bills will support emerging businesses, attract private investment, and ensure that the state’s economy benefits from the incredible talent and research institutions already based in our state.
“By supporting fledgling startups and women and minority-owned businesses through the use of tax credits and public matching funds, we will ensure they can grow and thrive in New Jersey,” he said. “These changes will allow entrepreneurs to continue to innovate the next breakthrough technologies in our state, creating high-quality jobs and positioning New Jersey as the best place to start a business.”
State Sen. Paul Sarlo (D-Wood-Ridge) agreed.
“We aspire to make New Jersey the best State for people to start a business, especially in emerging technology industries. This legislation is the next step in making that aspiration a reality,” he said. “Raising the Angel Investor Tax Credit will exponentially increase the investment that we see in start-ups across our State, helping small businesses to grow and create the breakthrough technologies of tomorrow.”
Assemblywoman Eliana Pintor Marin (D-Newark) also is a fan.
“This bill aims to revise the New Jersey Innovation Evergreen Fund policies, further strengthening the State’s ability to invest in promising startups, encouraging their growth, and creating a stronger incentive for others to build their business right here in New Jersey,” she said. “By expanding both the scope of potential investments as well as the amount we can invest, we are telling these innovative businesses that they have our support.”
Providing support for entrepreneurs — helping small businesses thrive — has been a talking point for the governor since he was candidate Murphy.
He gets the final word.
“Over the course of our administration, we have firmly established New Jersey as a global leader in technology and innovation,” he said. “Aided by strategic investments to provide our entrepreneurs with the tools and resources necessary to drive their businesses forward, New Jersey has become the destination to both start and scale a business.
“Today’s bill signing underscores our commitment to aspiring entrepreneurs and innovative companies while driving our state’s economy forward.”
