Tax Tip #266

Beginning in 2026, NJ is increasing the Angel Investor Tax Credit which rewards investors who make qualified investments in emerging technology businesses.

To qualify, the prospective investment must: 

• Have less than 150 employees
• At least 75% of which working in NJ 
• Be in the computing, biotechnology, IT, life sciences, medical devices, communications, energy or electronic devices industries

The base credit 35% and an extra 5% credit if the company is located in an opportunity zone, woman- or minority-owned, or a qualified venture fund.

There is a $500 application fee for investment amouts of $50,000 or less and $2,500 for investments of more than $50,000 but less than $500,000. 

Example: A biotechnology company in an opportunity zone with 10 employees, 9 of which are working in NJ invests $90,000. 

$90K * 40% = $36K – $2,500 = $33,500 savings.

For more information about this tax credit, reach out to a team member.