NEW JERSEY OFFERS $60 MILLION THROUGH EDA PROGRAM TO GROW TECH/BIOTECH INDUSTRY
Companies have until June 30, 2011 to Submit Applications
TRENTON, N.J. (May 17, 2011) – Supporting the Christie Administration’s commitment to economic development and job growth, the New Jersey Economic Development Authority (EDA) announced that technology and biotechnology businesses have until June 30 to submit applications to share an allocation available through the State of New Jersey’s innovative Technology Business Tax Certificate Transfer Program. Governor Christie’s proposed Fiscal Year 2012 budget seeks to increase available funds by $30 million over the Fiscal Year 2011 budget to $60 million.
This competitive program enables companies to sell New Jersey tax losses or research and development tax credits to raise cash to finance their growth and operations. Since the program was established in 1999, over 1,460 applicants have been approved for $570 million.
“Governor Christie and his entire administration understand how critical New Jersey’s technology and biotechnology companies are to the state’s economy and they are aggressively working to grow this vital sector,” said EDA Chief Executive Officer Caren S. Franzini. “Companies that have been able to raise capital to continue their research and build their businesses in New Jersey represent the success and effectiveness of this important program.”
Administered by the EDA and the Department of Treasury’s Division of Taxation, New Jersey-based technology or biotechnology companies with fewer than 225 U.S. employees may be eligible to sell net operating losses and research and development tax credits to unrelated profitable corporations for at least 80 percent of their value, up to a maximum lifetime benefit of $15 million per business.
To support the Christie Administration’s commitment to growing New Jersey’s innovation economy, the EDA assisted over 100 expansion and retention projects in the technology, life science and clean energy sectors in 2010. Companies that were supported include Otsuka America Pharmaceutical, a pharmaceutical and medical device company that relocated from Maryland to West Windsor and expects to create 50 new jobs; and, CGC Genetics, a Portugal-based medical genetics testing laboratory that opened its U.S. headquarters at NJIT’s Enterprise Development Center and plans to create 15 new jobs.
Applications for the Technology Business Tax Certificate Transfer Program must be submitted by June 30, 2011 and can be found at www.njeda.gov/NOLApplication.