Net Operating Loss
The Commission on Science and Technology and the State Treasury Department work with the New Jersey Economic Development Authority (NJEDA) to facilitate the Technology Business Tax Certificate Transfer Program.
The Technology Business Tax Certificate Program allows companies to sell their net operating losses (NOL) and can receive up to $.80 on the dollar. Applications are due June 30 of each year.
Eligibility Requirements
- That the proposed financial assistance will result in growth in permanent, full-time employment in the State.
- That the applicant has been unable to obtain financial assistance of any kind, OR
- That the applicant does not have sufficient resources to operate in the short term.
- That the proposed financial assistance will result in the prospect of significant positive change in the applicant's net income.
- That the applicant's principal product(s) or service(s) is (are) sufficiently innovative to provide a competitive advantage.
- That the applicant possesses scientific and technological viability.
- Please note, all applicants seeking to sell NOL's and/or R&D Tax Credits will also be required to own, have filed for, or have a license to use protected, proprietary intellectual property.
Applications will not be approved in which the new or expanding Technology or Biotechnology business:
- Has demonstrated positive net income in any of the two previous full years of ongoing operations as determined on its financial statements; Or,
- Has demonstrated a ratio in excess of 110% of operating revenues divided by operating expenses in any of the two previous full years of operations as determined on its financial statements
- Is directly or indirectly at least 50% owned or controlled by another corporation that has demonstrated positive net income in any of the two previous full years of ongoing operations as determined on its financial statements
- Is part of a consolidated group of affiliated corporations, as filed for federal income tax purposes, that in the aggregate has demonstrated positive net income in any of the two previous full years of ongoing operations as determined on its combined financial statements
- Has total employment in excess of 224 employees, on a global basis
- Has fewer than 75% of total domestic US employment in New Jersey
