New Jersey Assembly Bill A1129

New Jersey 2022-2023 Regular Session

• Introduced: 1/11/22
• Refer: 1/11/22

Caption

Provides assistance to business accelerators and incubators and startup businesses located within those business accelerators and incubators.

Impact

The implementation of A1129 is expected to have significant impacts on state laws regarding the support and funding of innovative startups. Specifically, the New Jersey Economic Development Authority (EDA) is mandated to administer both financial aid and a network of business incubator grants, enhancing the logistical and operational framework for new startups focused on technology. By fostering partnerships with academia and providing financial backing through tax credits, A1129 aims to create a robust environment for business growth, particularly for minority and women-owned startups and those involved in high-tech sectors.

Summary

A1129, known as the 'Startup Businesses in Business Incubators Development Program,' is a bill designed to enhance support for business incubators and accelerators throughout New Jersey. This legislation aims to facilitate the growth of emerging technology businesses by providing them with financial assistance in conjunction with resource provisions from established research institutions. The program will enable accelerator and incubator businesses to qualify for support provided they are located in urban transit hubs or within one mile of research institution campuses, aligning their goals with local economic development strategies.

Contention

While supporters herald the bill as a necessary advancement for the state's economic development, some stakeholders express concern over the reliance on government support and the potential for unequal funding distribution favoring select areas. Questions also arise regarding the effectiveness of the proposed tax credits and whether they will sufficiently incentivize startups to participate in the initiative. With a battery of assessments built into the program, the EDA is tasked with determining the effectiveness and impact of the funds distributed and measuring the program’s overall success in meeting its stated goals.