This week, the New Jersey Economic Development Authority (NJEDA) Board approved 10 corporations to purchase $85 million in tax credits for the New Jersey Innovation Evergreen Fund (NJIEF). This marks the second tax credit auction since the NJIEF program began 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 aims to expand access to venture capital and strategic resources within New Jersey. Through this initiative, the state invests as an equity partner in early-stage companies, with a goal of deploying up to $600 million alongside professional venture capital firms. Currently, about $13.6 million remains unallocated for future investments in high-growth businesses across the state.
After a successful first sale in 2022, a second auction initially offered $50 million in tax credits earlier this year. However, higher-than-expected demand led officials to increase available funding to $85 million in September. The selected corporations represent industries such as financial technology, IT consulting, consumer goods, insurance, banking, and healthcare.
“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.”
Each corporation participating in the auction has agreed not only to provide financial support but also serve on the NJIEF Advisory Board for one year. They have made strategic commitments totaling nearly $4.4 million for projects such as workforce development initiatives focused on innovation, mentorship programs throughout New Jersey, free shared workspaces for startups, and partnerships with Strategic Innovation Centers. These contributions are considered when evaluating bids for tax credits.
The funds raised will be used for program investments into innovative businesses based in New Jersey through public-private partnerships with Qualified Venture Firms (QVFs), which also contribute private capital. Portfolio companies and other stakeholders within New Jersey’s innovation ecosystem are expected to benefit from both these investments and additional strategic support provided by tax credit purchasers.
Applications remain open for venture firms seeking QVF status; approved managers reflect diversity in strategy, industry focus, and stage of investment. Currently there are 28 approved managers eligible under this program.
