TRENTON, N.J. (October 26, 2022) – The New Jersey Economic Development Authority (NJEDA) has issued a Request for Information (RFI) seeking information and ideas as it considers establishing a pilot program to attract clean energy manufacturers to New Jersey. The program would help New Jersey capitalize on the manufacturing resurgence taking place nationwide. The RFI can be found at https://www.njeda.gov/bidding/#rfi. Responses are due by November 22, 2022.

RFI responses would help to shape the development of a proposed NJEDA grant or forgivable loan program that would offset the costs for New Jersey companies or institutions that procure clean energy technologies from clean energy manufacturers looking to expand or establish a presence in the Garden State. The goal of this program is to build a pipeline of projects for clean energy manufacturers that are competitive for New Jersey customers, while helping early adopters minimize the costs of implementing clean technologies. The program would also aim to create high-quality manufacturing jobs in New Jersey, make the state a hub for clean energy manufacturing and innovation, and build a diverse workforce in the clean energy sector. It would also help meet the state’s climate and clean energy targets laid out in New Jersey’s Energy Master Plan (EMP). The EMP offers a strategic vision for the production, distribution, consumption, and conservation of energy in the State of New Jersey.

“There has never been a more exciting time to be a part of the clean energy transformation, particularly when it comes to manufacturing innovative technologies needed to create a green economy,” said Jane Cohen, Executive Director of the Governor’s Office of Climate Action and the Green Economy. “New Jersey continues to find new and creative ways to support businesses in this vital sector and the feedback we receive from this RFI will help us continue to attract new manufacturers while supporting those already established within the state.”

New Jersey’s manufacturing output grew at a 5.8 percent annualized pace between the fourth quarter of 2017 and the fourth quarter of 2021, which is more than double the national growth rate of 2.6 percent during that period. This program would be one of several in the manufacturing portfolio supported by more than $35 million in New Jersey’s Fiscal Year 2023 budget designed to spur capital investment, increase the adoption of new technology, attract new suppliers to the state, and expand workforce development opportunities.

“This pilot program would benefit entities that sit at the intersection of clean energy and manufacturing, two vital sectors as we work to achieve Governor Phil Murphy’s goal of establishing New Jersey as a leader in innovation,” said NJEDA Chief Executive Officer Tim Sullivan. “Direct input from stakeholders with perspectives on manufacturing innovative clean energy technologies will enable us to continue make strategic investments to address their needs and positions them well for the future.”

The RFI seeks information from individuals and/or entities with perspectives on manufacturing clean energy technologies (supply) and/or accelerating their adoption (demand). Interested stakeholders in clean energy technologies, clean technology manufacturing, and/or businesses interested in, or that might benefit from, the adoption of new clean energy technologies that may still have a higher market cost are encouraged to respond.

Sullivan noted that issuance of the RFI comes just days after Governor Murphy announced the NJEDA’s plans to create a $20 million New Jersey Manufacturing Voucher Program (NJMVP) to bolster New Jersey’s manufacturing sector. That program will focus on New Jersey manufacturers within targeted industries that will purchase equipment to integrate advanced or innovative technologies, processes, and materials to improve the manufacturing of their products. The NJMVP will offer grants valued at 30 to 50 percent of the cost of eligible equipment, including installation, up to a maximum award amount of $250,000.

All RFI responses must be submitted in writing no later than 1:00 p.m. EST on Tuesday, November 22, 2022, via email to earlyadopters@njeda.com. The subject line of the email should state “RFI Response-2022-RFI-OET-152 – Clean Energy Manufacturing in New Jersey – Early Adopters Pilot.”

All questions concerning the RFI announced today must be submitted in writing no later than 1:00 p.m. EDT, on Thursday, November 3, 2022, via e-mail to: earlyadopters@njeda.com. The subject line of the e-mail should state: “Questions-2022-RFI-OET-152.” Answers to questions submitted will be publicly posted on the Authority’s website on or about Thursday, November 10, 2022, at http://www.njeda.gov/Bidding-Opportunities-General/Economic-Transformation-RFIs as Addendum. It is the Respondent’s responsibility to check this website regularly for updates.

About the NJEDA

The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.

To learn more about NJEDA resources for businesses, call NJEDA Customer Care at 844-965-1125 or visit http://www.njeda.gov and follow @NewJerseyEDA on Facebook, Twitter, Instagram, and LinkedIn.

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Public can submit input until October 28, 2022

Trenton, N.J. (October 19, 2022) – The New Jersey Economic Development Authority (NJEDA) today announced that it is seeking public input on a revised set of rules for the Aspire Program, which was established under the New Jersey Economic Recovery Act of 2020 (ERA). The Aspire Program is a gap financing tool to support commercial, mixed use, and residential real estate development projects.

The current draft of the Aspire Program rules incorporates feedback collected during a public comment process that took place earlier this year. Members of the public are encouraged to review the draft posted today.  Any feedback must be submitted in writing through the designated online form available on the ERA website. The NJEDA will be accepting comments until Friday, October 28, 2022 at 3:00 p.m. EDT.

The document posted today is a draft of the Aspire Program rule amendments, which will be presented to the NJEDA Board, with any final edits, for its review and consideration for approval.  If approved, the document will be published for the formal public comment period, as designated by the Administrative Procedure Act.

For more information on the ERA or to submit feedback, please visit www.njeda.gov/economicrecoveryact.

About the NJEDA

The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.

To learn more about state resources available to New Jersey entrepreneurs and early-stage companies, visit https://www.njeda.gov and follow @NewJerseyEDA on Facebook, Twitter, Instagram, and LinkedIn.

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Enables Access to $200 Million Pool of Money Designed to Attract Large Production Companies to the Garden State

TRENTON, N.J. (October 14, 2022) – The New Jersey Economic Development Authority (NJEDA) opened applications today for film production facilities seeking a designation that will facilitate their access to a pool of tax credits designed to encourage the development of large, long-term film production facilities in the state. Under the New Jersey Film and Digital Media Tax Credit Program, which was expanded and enhanced by the Economic Recovery Act of 2020, as a complement to the program for individual film production projects, two additional and separate allocations were established to support projects led by Studio Partners and Film-lease Partners.

To be eligible to apply for the Studio Partner designation, the applicant must be a production company that has site control of a production facility that is at least 250,000 square feet for at least 10 years. Additionally, prior to approval, the production facility site would need to have at least preliminary site plan approval, an executed redevelopment agreement, or an adopted redevelopment plan that contemplates the construction of the production facility and, following designation approval, be able to provide temporary or permeant certificate of occupancy for the facility within 36 months. Only three Studio Partner designations are available, which will be awarded on a first-come, first-served basis to eligible applicants.

In addition to a separate $100 million pool of incentives, the Studio Partner designation will allow a production company to capture additional above-the-line salaries and wages as part of its tax credit award calculation, a key feature of the plan.

Film-lease Partners must be production companies that have at least a Letter of Intent or other site control documentation for a production facility of at least 50,000 square feet for a term of at least five years. Additionally, the applicant shall commit to spending, on an annual average basis, $50 million in qualified film production expenses over the applicant’s commitment period.

Studio Partners and Film-lease Partners would first apply to the Authority to be designated and then submit subsequent applications for each film project produced in New Jersey thereafter. There are no restrictions on the number of production companies that can receive the Film-lease Partner designation.

The tax credit award percentage for Studio and Film-lease Partners is calculated the same as the legacy program for film productions, however Studio and Film-lease Partners benefit from a separate approval queue and separate annual allocation of $100 million for each designation category.

For full program details and to access the application, please visit https://www.njeda.gov/film/. Specific questions may be directed to FilmTaxCredit@njeda.com.

About the NJEDA

The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.

To learn more about NJEDA resources for businesses, call NJEDA Customer Care at 844-965-1125 or visit https://www.njeda.gov and follow @NewJerseyEDA on Facebook, Twitter, Instagram, and LinkedIn.

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Provides $10 Million in Grant Funding for Real Estate Development and Public Space Activation Projects

TRENTON, N.J. (October 14, 2022) – The New Jersey Economic Development Authority (NJEDA) Board this week approved the creation of the Activation, Revitalization, and Transformation (ART) Program, which establishes a one-time grant opportunity to support economic recovery in urban areas with mass transit that have faced economic harms from the reduction of commuters due to the COVID-19 pandemic. Funded at $10 million, the ART pilot program will address these harms through the creation of two programs, one for Real Estate Rehabilitation and Development projects and one for Public Space Activation initiatives.

“Supporting New Jersey’s iconic cities is an essential component of our state’s successful economic recovery,” said Governor Phil Murphy. “Through catalytic investment in real estate development and public space activation projects, the ART Program will help municipalities most impacted by the COVID-19 pandemic thrive long into the future.”

Approved by the New Jersey Joint Budget Oversight Committee last November, the ART program utilizes American Rescue Plan (ARP) State and Local Fiscal Recovery Funds (SLFRF) to reactivate and revitalize Atlantic City and Newark’s commercial corridors in the wake of COVID-19. Commercial corridors play a vital role in both urban and rural geographies, serving as economic engines for communities by providing jobs that keep money circulating in the local economy, offer goods and services for residents, and power entrepreneurship as well as wealth building. They also serve to foster arts and cultural activities, which drive dynamic, thriving communities. To mitigate the economic impacts of COVID-19 and support the development and recovery of New Jersey’s commercial corridors, the ART Program will invest in the infrastructure, capacity building, and resources necessary to help Atlantic City and Newark recover from the pandemic and thrive for years to come. 

To establish this program, the NJEDA will enter into two Memoranda of Understanding, one with the New Jersey Department of Community Affairs and one with the New Jersey Casino Reinvestment Development Authority, each for five million dollars of SLFRF funds.

The ART program establishes a competitive grant program that will provide $9.75 million in total funding for Real Estate Rehabilitation and Development and Public Space Activation programming that will be split evenly among Newark and Atlantic City. ART’s Real Estate Rehabilitation and Development program will account for up to 70 percent of the total program funding ($3.4125 million per city) to support project-specific hard and soft costs that revitalize commercial corridors and incentivize catalytic development. ARTs Public Space Activation program will account for up to 30 percent of the total program funding ($1.4625 million per city) to support public space activation initiatives such as placemaking, events, public art installations, signage, streetscape improvements, and small business support.

“The ART Program serves as a critical investment in New Jersey’s economically vital commercial corridors, which due to the COVID-19 pandemic, have experienced decreased capacity, foot traffic and revenue during the transition to remote work,” said NJEDA Chief Executive Officer Tim Sullivan. “Governor Murphy’s leadership is advancing the robust recovery of New Jersey’s commercial corridors that will ensure strong, resilient, and equitable economic futures for both Newark and Atlantic City.”

NJEDA Chief Community Development Officer Tai Cooper noted that the arts industry contributes $23 billion to New Jersey’s economy, representing nearly four percent of the state’s gross domestic product.

“The ART program will drive meaningful community engagement by convening local developers and artists with the business community,” said Cooper.  “The arts are an essential thread in the fabric of creative placemaking and the ART program will illuminate New Jersey’s rich and storied legacy in both the performing and visual arts.”

About the NJEDA

The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.

To learn more about NJEDA resources for businesses call NJEDA Customer Care at 844-965-1125 or visit https://www.njeda.gov and follow @NewJerseyEDA on Facebook, Twitter, Instagram, and LinkedIn.

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Program Supports Remediation Cost to Promote Redevelopment of Brownfields Sites

TRENTON, N.J. (October 13, 2022) – The New Jersey Economic Development Authority (NJEDA) Board approved the creation of a competitive Brownfields Redevelopment Incentive (BRI) Program. The BRI Program, which will provide a total of $300 million in incentive funding over six years, is designed to support remediation costs and incentivize developers of redevelopment projects to carry out cleanup activities at brownfield sites throughout the state, bringing these sites back into productive reuse as an integral part of community development.

Established by the New Jersey Economic Recovery Act of 2020 (ERA), awards of up to 50 percent of remediation costs will be available for eligible brownfield sites, up to a maximum of $4 million. In keeping with the Governor’s vision for inclusive economic growth, Brownfield sites in a Government Restricted Municipality or Qualified Incentive Tract may be eligible for up to 60 percent of rehabilitation costs, up to a maximum of $8 million. Awards are scored on a competitive basis.

“The Brownfields Redevelopment Incentive Program will allow for the redevelopment of long-vacant and abandoned properties, helping to foster economic development throughout the state,” said Governor Phil Murphy. “This program will open the door for new developments that will bring jobs and improve the environment in underserved communities that have been disproportionately affected by past pollution.”

Tax credits will be awarded through a competitive application process, which is set to open in upcoming months, to ensure the best projects receive State support. The NJEDA has partnered with the New Jersey Department of Environmental Protection to create evaluation criteria for a competitive application process. To receive tax credits through the program, the developer must demonstrate that a financing gap exists. Parties that are in any way responsible or liable for the site contamination are not eligible for the program. 

“Supporting the transformation of brownfields from hazardous sites into community assets that spur economic development and job creation is vital to our efforts to advance environmental justice in New Jersey,” said New Jersey Department of Environmental Protection Commissioner Shawn LaTourette. “By taking a contaminated brownfield property and carefully remediating the site, the Brownfields Redevelopment Incentive Program will address community redevelopment in a sustainable way while supporting Governor Murphy’s efforts to improve New Jersey residents’ quality of life.”

The redevelopment of brownfield sites is an important component of smart planning that will allow New Jersey to meet its goals for economic growth. The BRI Program will help promote the redevelopment of these contaminated sites for productive reuse.

“The Brownfields Redevelopment Incentive Program can unlock vast untapped economic potential contaminated sites can have after they have been effectively rehabilitated,” said NJEDA Chief Executive Officer Tim Sullivan. “This program will be key to continuing to drive equitable community revitalization and growth across the state, achieving Governor Murphy’s vision for a stronger, greener, fairer New Jersey.”

Eligible costs include soil and groundwater investigation, site remediation, hazardous materials assessment and survey, hazardous materials or waste disposal, infrastructure remedial activities (fences, warning signs, site control, and drainage control), and building and structural issues for demolition, asbestos removal, polychlorinated biphenyls (PCB) removal, contaminated wood, or paint removal. Tax credits awarded through this program may not be used for the acquisition of the brownfield property, financing of the property, legal fees, Authority fees, and/or penalty or violation fees.

The Brownfields Redevelopment Incentive Program is part of a suite of solutions, including the Brownfields Loan Program and the Brownfields Impact Fund, designed to support development that transforms underutilized and contaminated spaces into community assets, with the goal of achieving a greener New Jersey. This includes ensuring that residents living in communities that have historically suffered from disinvestment, environmental contamination, and health disparities benefit from brownfields redevelopment.

In addition to the Brownfields Redevelopment Incentive Program, the ERA creates a suite of programs that includes tax credits to incentivize job creation, new construction, and historic property reinvestment; financial resources for small businesses; support for new supermarkets and healthy food retailers in food desert communities; new funding opportunities for early-stage companies in New Jersey; and support for the growing film and digital media industry. The NJEDA will continue to engage the public as new programs and rules are developed.

About the New Jersey Economic Development Authority

The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness. NJEDA is developing the Wind port on behalf of the State.
 
To learn more about NJEDA resources for businesses call NJEDA Customer Care at 844-965-1125 or visit https://www.njeda.gov and follow @NewJerseyEDA on Facebook, Twitter, Instagram, and LinkedIn.

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Loew’s Theatre in Jersey City Will Leverage Tax Credits to Rehabilitate Historic Theater

TRENTON, N.J (October 12, 2022) – The New Jersey Economic Development Authority (NJEDA) Board today approved the award of Historic Property Reinvestment Program (HPRP) tax credits to support the rehabilitation of Loew’s Theatre in Jersey City. This project, which marks the first award under the HPRP, is expected to result in the complete rehabilitation of the historic theater for use as a live performance, movie, and entertainment venue. The Board authorized the award of $42.27 million in tax credits, representing 45 percent of the eligible cost under the project, which has an estimated total cost of $110 million.  

Created under the New Jersey Economic Recovery Act of 2020, the HPRP’s main focus is historic preservation as a component of community development, aiming to attract long-term private investment into New Jersey while preserving historic properties throughout the state. 

“By supporting projects like the revitalization of Loew’s Theatre into vibrant community assets, we are ensuring the long-term growth of local economies while preserving the history of iconic properties within New Jersey’s neighborhoods,” said Governor Phil Murphy. “New Jersey’s rich entertainment history is one of our greatest assets and it is imperative that we continue to invest in our communities and enable them to maintain their historic structures.”

The HPRP is designed to work in conjunction with the Federal Historic Tax Credit Program to encourage and bolster long-term private investments focused on the rehabilitation of existing identified historic structures throughout New Jersey. The program incentivizes work that can significantly contribute to the revitalization of cities and downtowns into more vibrant magnets for people and investment, while preserving often underutilized historic properties and returning them to productive use.

“The long-awaited revitalization of Loew’s Theatre will be a tremendous economic driver that will lead to upholding the historic integrity of the property while offering new generations of New Jerseyans access to the performing arts,” said NJEDA Chief Executive Officer Tim Sullivan. “Governor Murphy has prioritized equitable and inclusive economic development and the HPRP is an important tool in achieving that goal as we work to improve the quality-of-life for residents statewide.”

As planned, the proposed Loew’s Theatre Rehabilitation Project will be a state‐of‐the‐art, 21st-century event space that will enhance the cultural, artistic, and community vibrancy of the Journal Square district, fostering economic prosperity in the neighborhood. Upon completion, the theatre is anticipated to host around 150 events a year, in addition to several community programming events.

“The NJEDA’s announcement today is a testament not only to the growing value of historic redevelopment, but also to the importance of preserving arts and culture in our communities,” said Jersey City Mayor Steven Fulop. “The Loew’s Theatre has stood for nearly 100 years as a major focal point here in Hudson County, and its transformation into an entertainment hub is a pivotal point to the continuing renaissance underway in Jersey City and our efforts to revive Journal Square. We are very grateful to Governor Murphy and the NJEDA for their commitment to seeing historic properties turned into thriving cultural centers and for recognizing our efforts to restore this critical community asset.”

Mayor Fulop noted that the rehabilitation work to Loew’s Theatre includes the building’s exterior, all public spaces, stage and support spaces, and modifications and upgrades to the mechanical, electrical, and plumbing systems. In addition, a new three-bay loading dock will be added at the rear of the theater, and a café is to be added along the south alley. Significant finishes at the interior and exterior will be rehabilitated or replicated where it was damaged beyond repair. All work is being reviewed by the Jersey City Historic Preservation Commission, the New Jersey Historic Preservation Office, and the National Park Service, and will follow the Secretary of the Interior’s Standards for Rehabilitation of Historic Properties.

“The HPRP marks the first time that New Jersey has offered support specifically designed to rehabilitate historic buildings for 21st century use while ensuring that their historic integrity remains in place, so this is a very exciting day for Historic Preservation in the state,” said NJEDA Director of Historic Preservation Aidita Milsted. “We have seen a great response to this program and look forward to bringing additional projects from Community Development before the NJEDA Board in the coming months.”

Milsted noted that the 2023 application round for the Historic Property Reinvestment Program is expected to begin accepting applications for Regular and Transformative Projects on Wednesday, February 1, 2023 at 10:00 a.m. The application round will close at 2 p.m. on Monday, April 3, 2023.

About the NJEDA

The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.

To learn more about NJEDA resources for businesses, call NJEDA Customer Care at 844-965-1125 or visit https://www.njeda.gov and follow @NewJerseyEDA on Facebook, Twitter, Instagram, and LinkedIn.

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Program Connects Property Owners with Funding Needed to Implement Energy Efficiency Measures

TRENTON, N.J. (October 12, 2022) – The New Jersey Economic Development Authority (NJEDA) announced today that it will hold a virtual information session on Thursday, October 20 to provide an overview of the Garden State Commercial Property Assessed Clean Energy (C-PACE) Program and to gather community feedback about specific elements of the program. The Garden State C-PACE Program, which is currently under development, will further the Murphy Administration’s commitment to battling climate change by helping businesses, non-profits, and multi-family residential developers and property owners overcome the financial hurdles of implementing energy efficiency, renewable energy, and climate resiliency measures.

The information session will take place on October 20 at 1:00 p.m. Registration is open now at https://tinyurl.com/NJ-C-PACE. In addition to providing details about the program, the NJEDA will also seek public input on topics related to the creation of the Garden State C-PACE Program during the information session. These topics include:

  • How to incorporate the financing of new construction projects into the program; and
  • How to effectively engage municipalities to participate in the program.

A recording of the webinar will be available at https://www.youtube.com/c/NewJerseyEDA/videos.

Authorized by legislation signed by Governor Phil Murphy last year, the Garden State C-PACE Program will provide a new form of financing to property owners for renewable energy, energy efficiency, water conservation, and certain types of resiliency-related improvements for New Jersey. The program works by enabling eligible commercial, industrial, agricultural and certain multi-family residential real property owners to access financing to undertake these kinds of improvements on their properties and repay the financing through the payment of an additional assessment to their municipality, similar to their real property tax, sewer, or water bill.

C-PACE assessments are a tool which municipalities levy on real estate parcels to serve valuable public purposes. C-PACE builds on a long history of using such assessments and serves a public purpose through reducing energy costs, stimulating the economy, potentially improving property valuation, reducing greenhouse gas emissions, and creating jobs. Over the past decade, C-PACE programs in more than two dozen states around the country have proven an effective tool to attract private capital into the renewable energy, energy efficiency, and resiliency markets.

Interested stakeholders who are unable to attend the information session but would like to provide feedback are encouraged to email GardenStateCPACE@njeda.com with their input.

About the NJEDA

The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.

To learn more about state resources available to New Jersey entrepreneurs and early-stage companies, visit https://www.njeda.gov and follow @NewJerseyEDA on Facebook, Twitter, Instagram, and LinkedIn.


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Program Offers Non-Dilutive Funding for Working Capital or Research

TRENTON, N.J. (October 11, 2022) – Twenty-four technology and biotechnology companies that are in the building and investing stages of their business have been approved to participate in the state’s Technology Business Tax Certificate Transfer Program, more commonly known as the Net Operating Loss (NOL) Program, the New Jersey Economic Development Authority (NJEDA) announced today. Combined, these companies were approved to receive a total of approximately $75 million through the program to fund working capital or research and development (R&D), the maximum amount available through the program. 

Now in its 23rd year, the NOL Program enables participants to sell their New Jersey net operating losses and unused R&D tax credits to unrelated profitable corporations for cash. The NJEDA and the New Jersey Department of Treasury’s Division of Taxation jointly administer the NOL Program, which has routinely been hailed as a “lifeline” by entrepreneurs seeking capital for their companies.

The average award for companies approved to sell their net operating losses through the program in 2022 was over $3.1 million. Thirty-six percent of program applicants are private businesses, while the remaining 64 percent are publicly traded companies. Two applicants are located in an Opportunity Zone, and three are located in an Innovation Zone. Three of the 24 approved companies are participating in the NOL Program for the first time this year. To date, more than $1.17 billion in funding has been distributed to over 570 technology and life sciences companies since the program’s inception in the late 1990s. The complete list of approved participants can be found following this news release.

“One of the many advantages of the NOL Program is that it enables growing companies to obtain cash without sacrificing equity,” said NJEDA Chief Executive Officer Tim Sullivan “Bolstering the amount of extra capital that these businesses can use to create jobs, buy new equipment, or further R&D is a key way that we are working to fulfill Governor Phil Murphy’s goal of cementing New Jersey’s role as a national leader in innovation.”

In January 2021, Governor Murphy signed the New Jersey Economic Recovery Act of 2020 (ERA) which, in part, increased the program’s annual cap from $60 million to $75 million. It also increased the lifetime cap for an individual applicant from $15 million to $20 million. This marks the second year that technology and life sciences companies have been able to benefit from the expanded NOL Program.

“Legislation created under the ERA has been extremely beneficial to New Jersey’s innovation community and to NOL Program participants in particular,” said NJEDA Chief Economic Transformation Officer Kathleen Coviello. “Companies that had previously maxed out of the program are able to participate once again due to the increased cap the Act provides to individual businesses. That extra capital has been instrumental in helping young companies commercialize their products and bring them to market.”

In addition to being vital to emerging companies, the NOL Program also provides enormous benefits to the profitable companies that are buying the net operating losses and unused R&D tax credits. A profitable company can purchase tax credits at a discount, based on the market price at the time. These tax credits have traditionally traded somewhere between 88 and 94 cents on the dollar. Once purchased, the tax credits can be applied to potentially reduce the buyer’s state tax obligation. The names of the buyers who chose to be publicly listed are on the NOL Program’s website.

Citius Pharmaceuticals is participating in the NOL Program for the first time this year. The Cranford-based biopharmaceutical company is focused on developing and commercializing critical care products with its diversified pipeline consisting of two late-stage assets. In May, Citius Pharmaceuticals announced it would expand the ongoing Phase 3 trial of its proprietary Mino-Lok therapy internationally. Mino-Lok is used to treat patients with catheter-related bloodstream infections. The Phase 3 trial of its oncology asset was completed at the end of 2021. Citius Pharmaceuticals expects to submit a biologics license application for this asset for the treatment of cutaneous T-cell lymphoma (CTCL) by the end of this year.

“Participating in a program that will connect us with cash in a non-dilutive manner will have a positive impact on our company,” said Citius Pharmaceuticals Co-Founder, CEO and Chairman Leonard Mazur. “As a serial entrepreneur, I know that the most successful businesses use every available resource to grow and scale. We are grateful to the NJEDA, and the State of New Jersey as a whole, for their commitment to emerging companies like ours.”

CytoSorbents Corporation (Nasdaq: CTSO), a Princeton medical device company focused on treating life-threatening conditions in the intensive care unit (ICU) and cardiac surgery with blood purification, has repeatedly benefited from the NOL Program. The company’s flagship product, CytoSorb®, is approved in the European Union and distributed in 75 countries around the world to treat deadly inflammation common to many lethal conditions in the ICU, such as sepsis and infection, COVID-19, trauma, liver failure, and complications of open-heart surgery, by removing inflammatory toxins from the bloodstream. Just recently, CytoSorbents announced final ISO 13485 certification of its new state-of-the-art manufacturing facility at its headquarters in Princeton that has the capacity to support up to $400 million in sales.

“It’s an exciting time for CytoSorbents as we work to positively impact critical care for patients worldwide,” said CytoSorbents Chief Financial Officer Kathleen Bloch. “The funding that we have received from the NOL Program over the years has been instrumental in our global expansion and was vital to our decision, as a vertically integrated manufacturer, to stay in New Jersey. We greatly appreciate the NJEDA’s ongoing support.”

IoTecha Corp. is a Cranbury-based clean technology company that has developed an integrated smart charging platform, including hardware, software, and cloud-based services, for the electric vehicle charging infrastructure. The company, which was recently listed on venture-capital firm Tracxn’s list of Top Electric Vehicle Startups, has benefited from the NOL Program twice in the past.

“New Jersey’s transformation to a green economy, combined with our ability to access state resources like the NOL Program, has been extremely beneficial to our company,” commented IoTecha Corp. CEO Oleg Logvinov. “We thank the NJEDA for its continued support and look forward to leveraging the funding announced today to further expand our activities in the state in the years ahead.”

About the New Jersey Economic Development Authority

The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.
 
To learn more about NJEDA resources for businesses call NJEDA Customer Care at 609-858-6767 or visit http://www.njeda.gov and follow @NewJerseyEDA on Facebook, Twitter, Instagram, and LinkedIn.

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Companies that are new to the program are indicated with an asterisk (*) in the table below.

Approved Company

NJ HQ/Base of Operations

County

1

Acuitive Technologies, Inc

Allendale

Bergen

2

Advaxis, Inc.

Monmouth Junction

Middlesex

3

AIM ImmunoTech, Inc

New Brunswick

Middlesex

4

Angel Medical Systems, Inc.

Eatontown

Monmouth

5

Bellerophon Therapeutics, Inc

Warren

Somerset

6

Brilliant Light Power, Inc.

Cranbury

Middlesex

7

Caladrius Biosciences, Inc.

Basking Ridge

Somerset

8

Celsion Corporation

Lawrenceville

Mercer

9

Citius Pharmeceuticals, Inc.*

Cranford

Union

10

Cytosorbents Corp. (DBA Cytosorbents Medical, Inc.)

Princeton

Mercer

11

ElectroCore, Inc.

Rockaway

Morris

12

Hepion Pharmeceuticals, Inc.

Edison

Middlesex

13

IoTecha Corp

Cranbury

Middlesex

14

IVERIC Bio, Inc.*

Parsippany

Morris

15

Matinas BioPharma Holdings Inc

Bedminster

Somerset

16

Ocean Power Technologies, Inc

Monroe Township

Middlesex

17

OncoSec Medical Inc

Pennington

Mercer

18

Palatin Technologies, Inc.

Cranbury

Middlesex

19

PDS Biotechnology Corporation

Florham Park

Morris

20

Provention Bio, Inc.

Red Bank

Monmouth

21

Rafael Holdings, Inc.*

Newark

Essex

22

Rafael Pharmaceuticals, Inc. (FKA Cornerstone)

Newark

Essex

23

Soligenix, Inc

Princeton

Mercer

24

Truefort, Inc.

Weehawken

Hudson

Please be advised that the next Capital City Redevelopment Corporation Board Meeting will be held in person and via teleconference on Tuesday, October 18, 2022, at 11:00 am. 

Members of the public who wish to speak during the public comment segment of the meeting, pertaining to agenda items, may attend in person or call into the meeting by using the conference number, and are encouraged to call in prior to the meeting start time to avoid any delays.

IN PERSON:

NJEDA Board Room

36 West State Street, Trenton, NJ 08625

TELECONFERENCE:

CONFERENCE NAME:                                CCRC BOARD MEETING

PARTICIPANT DIAL-IN NUMBER:              551-220-2262

PARTICIPANT ACCESS CODE:                    490 660 379#

The agenda can be found 48 hours prior to the meeting at our website: www.njeda.gov/ccrc.