What Clean Tech Founders Need to Know Before Applying for the NJ R&D Voucher
New Jersey is aggressively funding clean energy innovation, but securing the capital is only half the battle. Protecting the technology you develop is the other.
If you are an early-stage clean tech company in New Jersey, the Clean Tech R&D Voucher Program (currently in Round 3) offers up to $40,000 in non-dilutive funding. This capital allows you to access world-class equipment and technicians at participating universities (like Princeton, NJIT, and Rutgers) or federal labs.
Crowley Law helps founders not only apply for these vouchers but also negotiate the complex Technology Transfer agreements required to use them.
Current Status: Is the Voucher Program Open?
Program Status: Round 3 (subject to funding availability)
Funding Cap: Up to $40,000 (previously $25,000)
Administered By: NJ Commission on Science, Innovation and Technology (CSIT) & NJEDA
Voucher vs. Seed Grant: Knowing the Difference
Many founders confuse the Voucher Program with the Clean Tech Seed Grant. Applying to the wrong one will result in immediate rejection.
The Clean Tech Seed Grant offers up to $75,000 for general operating costs like payroll, marketing, and rent. It is cash for your business operations.
The R&D Voucher Program is strictly for facility access. You never touch the cash directly. Instead, the state pays the university or lab on your behalf to offset the costs of using their specialized equipment. It is designed solely to move your technology from a concept to a prototype.
What Does the Voucher Cover?
The program is designed to subsidize the hard costs of research.
Equipment Usage: Hourly fees for wind tunnels, electron microscopes, chemical analysis tools, or 3D printers.
Technician Labor: Paying university staff to run experiments for you.
Training: Costs associated with training your own team to use the facility’s advanced hardware safely.
Makerspace Fees: Access to facility memberships for rapid prototyping.
Eligibility Criteria: Do You Qualify?
To qualify for the Round 3 Voucher, your startup must meet strict “New Jersey-centric” criteria.
1. Company Structure & Location
Registration: Must be authorized to do business in NJ (with a valid Tax Clearance Certificate).
Size: Fewer than 50 full-time employees (FTE).
NJ Presence: 50% of the company’s cumulative work hours must be performed in New Jersey.
Revenue: Less than $5M in prior year revenue.
2. Technology Readiness Levels (TRL)
The state uses the Department of Energy’s TRL scale to determine eligibility. Your project must fall between:
TRL 1 (Basic Research): Scientific principles observed.
TRL 7 (Integrated Pilot): Prototype demonstrated in an operational environment.
Note: If your product is already commercialized (TRL 8-9), you are likely ineligible for this specific voucher.
3. Target Sectors
Your innovation must directly avoid or capture greenhouse gases in sectors like:
Energy Distribution & Storage
Green Buildings
Waste Processing
Water & Agriculture
Advanced Chemicals/Materials
Meeting these requirements is not just a formality. Each eligibility element directly affects approval, funding release, and downstream intellectual property rights tied to the facility engagement.
Participating Facilities: Where Can You Use the Voucher?
You cannot use this money just anywhere. You must partner with an approved NJ facility. This network includes some of the most prestigious research institutions in the country. Also, Eligible facilities must be approved by NJ CSIT at the time of application.
Universities: Princeton University, Rutgers University, NJIT, Rowan University, Stevens Institute of Technology, and Montclair State University.
Federal Labs: The Princeton Plasma Physics Laboratory (PPPL).
Makerspaces: Various approved collaborative workspaces across the state.
Selecting the right facility is strategic. You aren’t just buying equipment time; you are potentially building a relationship with researchers who are leaders in your specific niche.
The Legal Risks: Why “Free Money” Isn’t Free
Many founders apply for the voucher without realizing they are entering into a legal agreement with a major research institution. These institutions have powerful legal teams designed to protect their IP, not yours.
Here is where Crowley Law protects your interests
1. IP Ownership & “Background IP.”
When you test your proprietary technology in a university lab, who owns the results?
The Risk: Standard university agreements often claim ownership of “new IP” generated in their facilities, or they may demand a non-exclusive, royalty-free license to your invention.
The Solution: We negotiate Master Research Agreements (MRAs) or facility use agreements that clearly define your “Background IP” (what you brought in) versus “Foreground IP” (what was discovered), ensuring you retain commercial rights.
2. Confidentiality vs. Publication Rights
Universities exist to publish research; startups exist to protect trade secrets.
The Risk: A university technician working on your project might accidentally disclose your trade secret in a purely academic paper.
The Solution: We draft robust NDAs and review the facility’s publication policies to ensure your patentability isn’t destroyed by a premature public disclosure.
3. Government Rights (Bayh-Dole Implications)
If you are using a Federal Lab (like the Princeton Plasma Physics Lab), federal laws regarding government usage rights may apply. We ensure you understand what rights the government retains in your technology before you accept the voucher.
Common Disqualifiers: Why Applications Get Rejected
Even with great technology, many NJ startups get rejected for administrative errors.
Tax Clearance Failures: You must have a current tax clearance certificate from the NJ Division of Taxation. If you have unpaid fees or administrative holds, you are ineligible.
Wrong TRL: Claiming you are “ready for sales” (TRL 8 or 9) will disqualify you because the program is for development, not commercialization.
Missing Facility Quote: You cannot apply without a signed scope of work and budget quote from the university facility first.
Protect Your Innovation with Crowley Law LLC
You’ve just seen some of the hidden risks that university research agreements can pose to your business. A generic or poorly negotiated facility contract can put your company’s intellectual property at serious risk.
Crowley Law LLC specializes in creating and reviewing Technology Transfer and R&D Agreements tailored to the unique needs of your clean tech business. Our team helps startups and mid-sized companies in energy and sustainability identify and avoid hidden risks, including IP ownership disputes, inadvertent public disclosures, and unfavorable licensing terms.
Our services include:
Voucher Contract Review: We analyze the facility use agreements from universities to ensure you aren’t accidentally signing away your patent rights.
IP Protection Strategy: We help you define “Background IP” vs. “Foreground IP” to secure ownership of your discoveries.
Compliance & Eligibility: We guide you through the CSIT application requirements to ensure your corporate structure meets state standards.
Integration with Broader Legal Strategies: We help align your R&D contracts with your wider intellectual property and business protection strategies.
Don’t let a bad contract cost you your invention. Contact Crowley Law LLC today to ensure your most valuable assets are fully protected.
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Frequently Asked Questions (FAQs)
| Question | Answer |
| How much funding can I get? | Round 3 offers up to $40,000 per voucher. |
| Do I have to pay the money back? | No. This is a grant (voucher), not a loan. However, you must use it for the specific approved R&D activities. |
| Can I use the money for my own salary? | No. The voucher only pays the facility (university or lab) for equipment and their staff time. It does not cover your payroll. |
| What if I have more than 50 employees? | You are ineligible. The program is strictly for small businesses with fewer than 50 full-time equivalent employees. |
| Does the university own my invention? | Not necessarily, but standard contracts might claim it. You need a customized Master Research Agreement to protect your IP rights. |