TECHNOLOGY BUSINESS TAX CERTIFICATE TRANSFER (NOL) PROGRAM
The 2023 NOL program application is now available. The 2023 NOL application submission deadline is June 30th 2023 by 11:59 PM. After this date and time the application locks and no additional submissions will be accepted.
Net operating losses and R&D tax credits may be sold for at least 80% of their value, up to a maximum lifetime benefit of $20 million per business
Ability to turn NOL and R&D tax credits into capital
Can be used for growth and operations, including working capital or to fund research
Technology and biotechnology companies whose primary business involves the provision of a scientific process, product or service are eligible
APPLICATION DEADLINE: Friday, June 30th 2023 11:59 pm – Application will go live around the beginning of May.
Application and application fee must be submitted via the online application. No other form of application and payment will be accepted for entry into the program. NJEDA must receive completed application by deadline. The application will not be considered submitted until you receive the confirmation message at the end of the application. Please retain this confirmation in the event that it is needed.
- Up to $75 million is available annually, with $15 million set aside for businesses located in Innovation Zones, Opportunity Zones, or NJ Certified as a minority and/or woman owned business or enterprise (any unused balance of the $15 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 no more than 224 and 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.
- A company must demonstrate meeting all eligibility criteria at application and benefit closing. This includes numbers of employees confirmed via appropriate documentation.
Application Fee: $1,000
Approval Fee (for any tax benefit award greater than $100,000): one percent (1%) of tax benefit award. Maximum fee of $20,000. Application fee credited towards approval fee.
**All fees are non-refundable
Courtesy Copy of Current Technology Business Tax Certificate Transfer Program Rules N.J.A.C. 19:31 12.1 through 12.8 *
New Jersey Emerging Technology and Biotechnology Financial Assistance Act, N.J.S.A. 34:1B-7.37 et seq.
An informational webinar will be held on May 9 at noon. Click here to register.
To answer any questions you may have, please first consult with the program videos and links provided above, including the “Frequently Asked Questions”. If this does not answer your questions, please email your questions and contact information to NOL@njeda.com