TRENTON – This week, the New Jersey Economic Development Authority (NJEDA) Board approved ten corporations to purchase $85 million in tax credits to fuel the New Jersey Innovation Evergreen Fund (NJIEF). This is the NJIEF’s second tax credit auction since the program launched in 2022.
“Both investors and entrepreneurs have praised the NJIEF as a strong driver for channeling investment into New Jersey startups, and once again business leaders have recognized the Fund’s significant value,” said NJEDA Acting Chief Executive Officer Mary Maples. “The Murphy Administration has bolstered New Jersey’s innovation economy by engaging with the state’s industry leaders to catalyze investment and foster mentorship and networking opportunities for emerging entrepreneurs.”
The NJIEF is a unique tool to increase access to strategic resources and venture capital in New Jersey. Under the NJIEF, the State acts as an equity investor in early-stage companies, deploying up to $600 million into companies alongside professional venture capital firms. The Evergreen Fund currently has approximately $13.6 million of unallocated capital available to fund additional investments into high-growth businesses in New Jersey.
Following a successful inaugural sale in 2022, a second auction of $50 million was announced this summer. Due to greater than anticipated demand, funding for the tax credit auction was increased in September to $85 million. The companies approved represent a diverse array of industries, with businesses hailing from the financial technology, information technology consulting, consumer goods, insurance, banking, and healthcare sectors.
“The NJIEF provides the Authority with another distinct resource to support start-ups through a holistic approach that extends well beyond financial assistance,” said NJEDA Chief Economic Transformation Officer Kathleen Coviello. “This recent tax credit auction demonstrates the state’s commitment to supporting innovative ventures and we look forward to continuing to invest high-growth startups that will propel economic growth across the state.”
The following applicants were approved to purchase tax credits through the NJIEF:
· OceanFirst Financial Corp.: Approved to purchase approximately $1 million in tax credit awards for $750,000
· Verizon Communications, Inc.: Approved to purchase approximately $19.5 million in tax credit awards for $16.0 million
· Metropolitan Life Insurance Company or MetLife: Approved to purchase approximately $7.6 million in tax credit awards for $6.5 million
· Comcast Corporation: Approved to purchase approximately $27.7 million in tax credit awards for $22.8 million
· The Prudential Insurance Company of America: Approved to purchase approximately $13.6 million in tax credit awards for $10.9 million
· Selective Way Insurance Company: Approved to purchase approximately $3.0 million in tax credit awards for $2.4 million
· Unilever United States, Inc.: Approved to purchase approximately $5.4 million in tax credit awards for $4.3 million
· CRB Group, Inc. or Cross River Bank: Approved to purchase approximately $2.9 million in tax credit awards for $2.3 million
· CGI Technologies and Solutions, Inc.: Approved to purchase approximately $930,00 in tax credit awards for over $697,000
· Haleon US Holdings, Inc.: Approved to purchase approximately $3.4 million in tax credit awards for $2.5 million
As part of the auction, each corporation will support the state’s innovation economy along with their financial bids, including through a commitment to serve on the NJIEF Advisory Board for one year. Additionally, the ten corporations made strategic commitments to support the State’s innovation community through unique and impactful projects with costs totaling nearly $4.4 million. Examples of this strategic support include contributions to support innovation focused workforce development and mentorship programs throughout New Jersey, free shared workspace open to innovative startups, and partnerships with Strategic Innovation Centers. These commitments, which include networking, mentoring, and educational opportunities, are a scored component of the tax credit purchasers’ bids.
These purchases will fund Program investments into innovative high-growth NJ-based businesses made through public-private partnerships with Qualified Venture Firms (QVFs), who also invest their own private sector capital into the transactions. Additionally, the Program portfolio companies and innovation ecosystem stakeholders throughout the Garden State will benefit from the strategic commitments made by NJIEF tax credit purchasers.
Applications for venture firms seeking to qualify as a QVF can be found here and are being accepted on a rolling basis. The firms approved to date represent diversity in terms of investment strategy, industry, and stage. Additionally, there continues to be strong momentum from interested managers. The roster of the 28 currently approved managers can be found here.
Applications for approved QVFs to apply for Qualified Investments into high-growth, innovative businesses based in New Jersey are also now open. The total capital available for new investments stands at approximately $13.6 million.
About the NJEDA
The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.
To learn more about NJEDA resources for businesses, call NJEDA Customer Care at 844-965-1125 or visit https://www.njeda.gov and follow @NewJerseyEDA on Facebook, Twitter, Instagram, and LinkedIn.