Grow NJ program offering incentives for businesses in tech, life science, energy & health
Continuing the state’s commitment to support technology companies at every stage of growth, the Board of the New Jersey Economic Development Authority (EDA) recently took action on several projects under the Grow New Jersey Assistance program. Strengthened through the Economic Opportunity Act, Grow NJ offers enhanced benefits to companies in targeted industries, including technology, life sciences, energy and health.
“New Jersey has long been a leader in innovation, and the state is committed to supporting the attraction and expansion of businesses in the technology sector,” said EDA President and Chief Operating Officer Tim Lizura. “New Jersey is highly educated and perfected located – a natural fit for emerging and established technology companies.”
Through the Grow NJ program, the EDA approved four businesses in the greater technology industry with tax credits totaling more than $26 million. This assistance is expected to leverage over $37 million in private investment and the creation of 458 new jobs. To date, nearly 30 percent of tax credits approved under Grow NJ have supported this sector, accounting for the creation of over 2,600 new jobs and the retention of 2,700 “at risk” jobs.
Businesses approved in March include Advanced Accelerator Applications, USA, which is considering an existing facility in Millburn or new construction in Missouri to house its US headquarters. The company develops, produces and commercializes diagnostic and therapeutic products for use in treating cancer and other diseases. Advanced Plasma Therapies, Inc., a medical device and drug manufacturer, is weighing a move to a multi-tenant office building in West Windsor to support its expansion.
Also in Middlesex County, iCIMS, a software and services company, is contemplating an expansion in Old Bridge rather than relocating some of its operations to Colorado.
Grow NJ represents one element of the continuum of assistance the state offers to support the technology industry. Just this week, the EDA hosted its third Founders and Funders event, which directly connects entrepreneurs and start-up companies with investors. During the three events held to date, more than 90 businesses have participated in a “speed dating” match up with 60 investors.
In response to another marketplace need, the EDA also recently approved $1 million to support the expansion of three co-working spaces in Hoboken, Jersey City and Asbury Park. Co-working space is of particular value to those in the technology sector as it helps to foster a collaborative environment and offer flexible, expandable infrastructure, without long-term commitments as a company grows.
Other programs available to support the industry include the Angel Investor Tax Credit Program, which provides credits against New Jersey corporation business or gross income tax for 10 percent of a qualified investment in an emerging technology business with a physical presence in New Jersey and that conducts research, manufacturing, or technology commercialization in the state; and, the Technology Business Tax Certificate Transfer Program, which allows unprofitable technology and biotechnology companies to sell New Jersey tax losses and/or research and development tax credits to raise cash to finance their growth and operations.
The EDA is part of the state’s results-driven Partnership for Action. Created by Governor Christie and led by Lt. Governor Guadagno, the Partnership is the hub for all economic development activity in New Jersey and is comprised of four interconnected and highly focused organizational elements: Choose New Jersey, the Business Action Center, the Office of the Secretary of Higher Education and the EDA.
To learn about programs and initiatives to support the technology industry, visit www.njeda.com and follow us on Twitter and LinkedIn @NJEDATech.