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Department of State

Business Assistance Programs

The Hon. Tahesha Way, Secretary

Emerging Technology & Life Science Assistance Programs

Technology Business Tax Certificate Transfer (NOL) Program

Administered by the EDA, this program enables unprofitable technology and biotechnology businesses with fewer than 225 US employees (including parent company and all subsidiaries) to sell unused percentage of Net Operating Losses and Research and Development Tax Credits to unaffiliated, profitable corporate taxpayers in New Jersey for at least 80 percent of the value of the tax benefits. This allows unprofitable technology and biotechnology businesses to turn their tax losses and credits into cash.

Program Details:

  • Up to $60 million is available annually, with $10 million set aside for businesses located in Innovation Zones (any unused balance of the $10 million set-aside is reverted to the general program pool)
  • Only technology and biotechnology companies whose primary business involves the provision of a scientific process, product or service are eligible
  • An eligible company must own, have filed for, or have a license to use protected, proprietary intellectual property (defined as a patent or a registered copyright)
  • An eligible company cannot have had positive net operating income on either of its last two full-year income statements according to GAAP. In addition, an eligible company cannot have a parent company with positive net operating income, or be part of a consolidated group of affiliates for federal income tax purposes with positive net operating income
  • An eligible company must have at least one full-time employee working in New Jersey if incorporated or formed less than three years, five full-time employees in New Jersey if incorporated or formed more
  • than three years but less than five years, or 10 full-time employees in New Jersey if incorporated or formed more than five years
  • An eligible company must have financial statements for the two most recent full years of operation compiled, reviewed or audited by an independent CPA firm and prepared according to US GAAP.

Fees apply and are non-refundable.

Program Video Presentations: https://youtu.be/ed-wbT2tu1w

Program Links:

* Any proposed amendments to the program rules can be found on the Proposed New Rules/Amendments page

Please email your questions and contact information to NOL@NJEDA.COM. All emailed questions and their responses are considered public knowledge. The questions and responses are reviewed by the deputy attorney general's office and posted in the program's “frequently asked questions” (link above).

www.njeda.com/technology_lifesciences/Technology-Business-Tax-Certificate-Transfer-(NOL)


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