High-Tech Tax Credit Zones Proposed For New Jersey

High-Tech Tax Credit ZonesHigh-tech tax credit zones are under consideration in New Jersey and could be a boon to Camden, Newark and New Brunswick. Yes, you read that right, high-tech tax credit zones. In a State known for its high taxes, a welcome relief and one that certainly could be a boost for the burgeoning electronic Garden State. Maybe the State is getting a little worried now that States like Texas and Indiana are actively looking to poach New Jersey businesses.

“As part of the latest effort to lure the high-tech industry to New Jersey, state officials are backing a measure that would offer tax incentives to those kinds of industries. Senate Bill 848 would have the state’s Economic Development Authority establish innovation zones around Camden, New Brunswick and Newark and provide tax incentives for businesses that create high-tech jobs within those zones. It describes such zones as the geographic area surrounding a research institution.”

Read: High-tech tax credit zones proposed for New Jersey at NJBIZ

Found Money: New Jersey EDA Net Operating Loss Program

New Jersey EDA Net Operating Loss ProgramStartups should take a look at the New Jersey EDA Net Operating Loss Program. It can be a great way for startups with net operating losses to get the cash they need to help them grow. In a State known for its high taxes, this program may be as close to “found money” as a startup will find anywhere. While the program itself is small, it’s a great resource to help boost New Jersey’s tech sector.

“…There’s a program from the State of New Jersey that will give not-yet-profitable tech and life-science startups an average of $1 million in undiluted cash to do with as they please: plow it into R&D, hire more people or finance new equipment. The bottom line of the Technology Business Tax Certificate Transfer (NOL) Program is that local startups that have intellectual property are allowed to sell their R&D tax credits or their state tax losses to companies, like PSE&G, that need tax breaks. There is $60 million set aside for this program.”

Read: Opinion: Apply for the New Jersey EDA’s Net Operating Loss Program—It’s Like Found Money at NJTechWeekly

Texas Messing with New Jersey

Texas Messing with New JerseyHot off the heels of the news of Indiana’s billboard campaign to lure New Jersey businesses out of the state, we now have Texas messing with New Jersey. Lower taxes, BBQ, warmer weather, etc., do they really think these things can win us over?

“The election of a progressive governor intent on raising taxes seems to have some people thinking New Jersey is easy pickings. Indiana is putting billboards on our highways in an attempt to lure New Jersey companies to the Hoosier State. And Texas Gov. Greg Abbott recently wrote a biting column for The Star-Ledger urging New Jersey residents to move to his state. “In Texas, we’re focused on lowering taxes, not raising them,” Abbott wrote.”

Read: Don’t mess with Texas? Texas better not mess with Jersey at ROI-NJ

Blockchain Legislation Advances in New Jersey

Blockchain LegislationBlockchain legislation is moving forward in New Jersey, but will the public and private sectors embrace its usage? The public sector typically lags the private sector in technology adoption, but perhaps new blockchain legislation will spur both sectors forward and keep New Jersey at the vanguard of emerging technologies:

“A legislative package focused on blockchain technology and its use by private companies made its way through the Assembly Science, Innovation and Technology Committee. The Assembly Science, Innovation and Technology Committee released a legislative package focused on blockchain technology and its use by private companies, as well as exploring the use of it in government record-keeping. Blockchain technology, which entails the use of encrypted data that is exchanged between parties, and is the underlying structure of cryptocurrencies….”

Read: Blockchain legislation takes step forward at ROI-NJ

Indiana Using Billboards to Lure New Jersey Companies

New Jersey CompaniesNew Jersey companies are the target of an aggressive advertising campaign by the State of Indiana to lure them to leave the Garden State. Certainly, New Jersey has it challenges for businesses but you cannot beat its location. And we have – erm – some promising football teams in the “New York” Jets and the “New York” Giants. Will New Jersey return fire by advertising in Indiana to grow the ranks of New Jersey companies?

“The billboards are part of a yearlong campaign, an Indiana official said. We’ve long known about competition from nearby New York and Pennsylvania….Who ever thought about Indiana?….the Hoosier State recently announced its intentions to lure Garden State companies, 14-by-48-feet at a time. Billboards have been popping up on the New Jersey Turnpike since the start of the year, imploring travelers to “Take your business to the next level.”

Read: Indiana? Really? State using billboards to lure N.J. companies at ROI-NJ

Newark Tech Hub Cements Position in Electronic Garden State

Newark Tech HubThe Newark Tech Hub can only be good news for a State pushing deeper into technology ventures and innovation to support much-needed growth. Will it compete with the New Brunswick Tech Hub? Certainly, but this State can support both a Newark Tech Hub, a New Brunswick Tech Hub and many more. And if Newark wins the Amazon HQ2 competition…..

“Newark’s time has arrived, and it is rapidly becoming a technology epicenter. That’s clear from the recent announcement of three major tech initiatives: hosting both the VOICE Summit, sponsored by Amazon Alexa, and the 2018 MetroLab conference on the campus of New Jersey Institute of Technology, as well as a partnership involving Newark, New Jersey Institute of Technology and Intersection to place 45 LinkNWK kiosks throughout the city.”

Read: Newark cements position as major tech hub at NJBIZ

NJBIA Slams New Jersey Millionaires Tax Proposal

New Jersey Millionaires TaxThe proposed New Jersey millionaires tax is not without its vocal detractors, including the NJBIA. Will the proposed tax end up hurting the State and cause more “brain drain” and capital flight? Increased spending brings increased demand for tax revenue. Hopefully a balance can be achieved so that New Jersey is put on a solid footing for future growth.

“An executive from the New Jersey Business and Industry Association, in testimony before the Assembly Budget Committee on Monday, warned that Gov. Phil Murphy’s proposed “millionaires tax” could stall the state’s economic recovery. The proposed tax would increase the top income tax rate to 10.75 percent on income above $1 million. The current top rate is 8.97 percent on income of over $500,000.”

Read: NJBIA exec slams ‘millionaire tax’ proposal at NJBIZ

New Jersey Tech Sector Worth $48B to State Economy

New Jersey Tech SectorThe New Jersey tech sector is worth $48 billion to New Jersey’s economy according to a recent study. At the rate New Jersey spends money, we should all hope that the New Jersey tech sector continues its expansion and that New Jersey legislators continue to foster its growth.

“New Jersey’s technology industry contributed $48 billion to the state’s economy in 2017, according to an analysis by the CompTIA association…its headcount…good for 7.8 percent of the state’s workforce…responsible for more than 9 percent of the overall state economy.”

Read: Tech sector worth $48B to N.J. economy, study finds at ROI-NJ

J&J in Talks to Build New Brunswick Business Incubator

Longtime New Brunswick mainstay Johnson & Johnson may construct a New Brunswick Business Incubator as part of the New Brunswick Tech Hub. Getting large tenants who are willing to invest capital and resources will be key to making the New Brunswick Tech Hub a success.

“Johnson & Johnson is negotiating to become the first tenant in a planned new innovation hub recently disclosed by Gov. Phil Murphy. The pharmaceutical company hopes to construct a 35,000- to 40,000-square-foot incubation space in the new facility, to be built on a site in New Brunswick by 2019, sources told NJBIZ. J&J, which is headquartered in New Brunswick, would make the business incubator part of its JLabs, a collection of eight incubators across the U.S., Europe and Asia. JLAbs has produced more than 200 startup companies and was designed to create “economic ecosystems” in communities by encouraging entrepreneurship, employment and economic growth.”

Read: EXCLUSIVE JJ in talks to build incubator in new innovation hub at NJBIZ

New Brunswick Tech Hub In the Works

New Brunswick Tech HubA sprawling New Brunswick Tech Hub is in the works, according to Governor Murphy. New Brunswick is uniquely situated between New York and Philadelphia and innovation centers that include Rutgers University, Princeton University and a large variety of tech and life sciences companies and supporting organizations. The New Brunswick Tech Hub is still in the planning stages, and may take many years to come to fruition, but would be a boon for technology innovation in New Brunswick and New Jersey in general.

“Gov. Phil Murphy on Monday got behind a prospective 12-acre development project aimed at attracting new technology and other jobs to New Jersey. The Democratic governor met with officials from Rutgers University, local and state government, private businesses and others at the university to support the project, called the Hub. Murphy, who met privately with the group of leaders before he spoke to reporters, said the idea for the project goes back at least five years but what’s new is “the will” to push the project forward.”…The project fits with Murphy’s campaign promises to jump-start what he calls the state’s innovation economy, though there were few details on the project immediately available.”

Read: Murphy announces New Brunswick ‘Hub’ redevelopment project aimed at tech