$34M invested in the NJ Tax Transfer Program attracted 510M in additional capital to NJ in 2009.
For each job created in the NJ Biotechnology Industry, 2.8 additional jobs are created in NJ.
New Jersey’s Technology Tax Transfer program provides a critical bridge to commercialization and keeps companies here. Unlike private investment, NJ’s Technology Tax Transfer program serves as a pair of geographic golden handcuffs: companies must be in NJ to participate. While companies are participating, their principals and employees are buying homes, setting down roots, spending their earnings and building lives in NJ. And, Tax Transfer Program dollars attract follow on private investment, often from outside the state.
This information comes from Katherine Kish, co-executive director of Einstein’s Alley: “We are very concerned that the 2011 State Budget proposal to eliminate the New Jersey Commission on Science and Technology and to cut the Technology Business Tax Certificate Transfer Program (TBTCTP) from $60 million to $30 million stands to stifle growth of the technology sector.
As taxpayers and voters, we recognize the dire financial position the State is in. However, we fear that these cuts as proposed stand to cost the State more than the amount they are intended to save given the ROI these programs represent.
After what has been invested in this sector over time to build a culture of innovation, NJ will stand to lose the positive effects going forward if we don’t continue that investment. I’m concerned that any cuts will be like ‘eating our seed corn.'”
If you are concerned as well, contact your legislator.