Created as an element of Governor Corzine's Economic Growth Strategy, the Edison Innovation Fund seeks to develop, sustain, and grow technology and life sciences businesses that will lead to well-paying job opportunities for New Jersey residents.

Since the launch of the Fund in October 2006, New Jersey has delivered over $350 million in financing, assistance, business incentives and tax credits to early-stage and established technology and life sciences businesses.  

The Fund is an integrated set of state resources that provides qualified New Jersey companies with financing assistance, real estate development services, and technical assistance, such as assembling land and structuring financing to help create, sustain and grow business.

These resources include, but are not limited to:

• Edison Innovation Clean Energy Manufacturing Fund:  Two separate program components offer up to $3.3 million as a grant and interest-free loan for New Jersey manufacturers of Class I renewable energy and energy efficiency technologies.  Up to $300,000 is available as a grant to assist with the manufacturing site identification and procurement, design, and permits.  Up to $3 million is available as an interest-free loan to support site improvements, equipment purchases, and facility construction and completion.  One-third of the loan may convert to a performance grant if certain business and technology-based milestones are met.
• Edison Innovation Commercialization Fund: Up to $200,000 in the form of a subordinated, convertible note. Includes negative pledge on intellectual property. Warrants taken.
• Edison Innovation Digital Media Tax Credit Program:  Qualified companies involved with the production of digital media content, with at least $2 million in expenditures in New Jersey, may be eligible for a corporation business tax credit of 20 percent for certain digital media content production expenses, including, but not limited to, wages and salaries of individuals involved in the production; costs of computer hardware and software, data processing, visualization technologies, sounds synchronization, and editing; and the rental of facilities and equipment.  Applicants are approved on a first-come, first-serve basis.
• Edison Innovation Growth Fund: Up to $1 million available, with 1:1 cash match. Financing has similar structure to Commercialization Fund. Companies must have delivered "proof of concept" and achieved successful, referencable, independent beta results.
• Edison Innovation R&D Fund: Grants of up to $500,000 through the Commission on Science & Technology (CST) to support R&D related activities, with EDA "wrap-around" equity-like financing of up to $100,000 to support non-R&D costs.
• Edison Innovation Technology Fellowship Fund: Provides companies with access to new talent and expertise by paying the salary for recent doctoral graduates of New Jersey universities while they work for those companies. Award amount is $65,000 salary for the first year and $75,000 for the second, with an additional $10,000 each year to be spent on career development expenses for the postdoctoral fellow. 
• Edison Renewable Energy Technologies Fund: Grants ranging from $100,000 to $500,000 are available from CST to companies partnering with a New Jersey research university, another company or institution to fund proof-of-concept research and development activities, as well as ancillary activities necessary to commercialize the indentified technology.  Companies that are awarded the Edison Renewable Technologies Fund can receive up to 20 percent of the approved CST grant, not to exceed $100,000, from the EDA in equity-like financing for non-R&D related costs.
• Customized Training Grants: Grants for up to $200 per instructional hour are available to technology business employers wishing to invest in their New Jersey-based workers to create a more competitive global economy. Average cost of instruction per trainee will not exceed $1,500, and the employer must match at least 50% toward total program costs.
• Incubator Seed Program: Awards ranging from $20,000 to $50,000 provide competitive funding to assist emerging businesses achieve milestones in their commercialization path.   Eligible projects involve: marketing, sales, or distribution strategies; prototyping; patent applications, searches or strategies; product development, and manufacturing and customer trials. Business must be located within one of the 14 CST-supported incubators.

New Jersey also offers tax credit programs and job creation incentives to spur the growth of our State's technology industry, including:

• Technology Business Tax Certificate Transfer Program: Qualified technology businesses in New Jersey with fewer than 225 employees can raise money to finance their growth and operations by selling unused net operating losses and research and development tax credits to other profitable New Jersey corporations for at least 75 percent of their value.
• Business Employment Incentive Program (BEIP): Companies seeking to relocate to or expand in New Jersey may be eligible for grants based on the number of new jobs created. By adding at least 10 jobs within two years, eligible technology or life sciences companies can be reimbursed for up to 80 percent of gross withholding tax paid by new employees for up to 10 years, to a maximum of $50,000 per employee over the course of the grant. Companies must demonstrate that the BEIP grant is a material factor in their decision to relocate to or expand in New Jersey.

For manufacturers that are about to use their net income to service debt, the EDA may provide traditional financing options, including the issuance of tax-exempt bonds to help reduce borrowing costs.

The EDA issues bonds for manufacturers to finance projects such as real estate acquisitions, machinery and equipment purchases, and for building construction and renovations.  

Edison Innovation Zones are “technology neighborhoods” in Camden, the greater New Brunswick area and Newark where academic and research institutions can work collaboratively with companies to develop and market new products or services while enjoying certain financial incentives and other benefits. These zones offer convenient access to some of the best researchers, technology companies and service providers in New Jersey.   And because they provide special benefits and financial incentives for resident businesses, these zones are also proving to be powerful economic engines for local economies.
 
State-of-the-art technology centers complete with laboratory, office and production facilities anchor two of New Jersey’s three Edison Innovation Zones. These facilities include the Waterfront Technology Center at Camden and the Technology Centre of New Jersey (which features the Commercialization Center for Innovative Technologies) in North Brunswick.   Technology and life sciences companies relocating within Edison Innovation Zones are eligible for enhanced financial benefits through the EDA.
 
To download a comprehensive guide on the Edison Innovation Fund, click here.

To learn more or to get additional information about the Edison Innovation Fund call 866-534-7789.