TECHNOLOGY BUSINESS TAX CERTIFICATE TRANSFER (NOL) PROGRAM
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
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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
APPLICATION DEADLINE: June 30, 2025
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.
Start ApplicationPROGRAM DETAILS
The Technology Business Tax Certificate Transfer Program enables approved Technology and Biotechnology Businesses with Net Operating Losses to sell their Unused Net Operating Loss Carryover (NOL) and Unused Research and Development Tax Credits (R&D Tax Credits) for at least 80% of the value of the tax benefits to a profitable corporate taxpayer in the State of New Jersey that is not an Affiliated Business. This allows Technology and Biotechnology Businesses with Net Operating Losses to turn their tax losses and credits into cash to buy equipment or facilities, or for other Allowable Expenditures. The New Jersey Economic Development Authority (NJEDA) determines eligibility, and the New Jersey Division of Taxation determines the value of the tax benefits (NOL and R&D Tax Credits).
ELIGIBILITY
- 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. By the program legislation, a Pennsylvania resident is not subject to New Jersey Gross Income Tax. Therefore, Pennsylvania residents are not eligible to be considered as Full Time Employees in the Technology Business Tax Certificate Transfer Program.
- 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.
FEES
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
Please be advised: New Jersey State law prohibits most cannabis license and certification holders from receiving or continuing to receive an economic incentive from the NJEDA. If the applicant, or any person who controls the applicant or owns or controls more than one percent of the stock of the applicant, has applied for or received a license or a certification from the New Jersey Cannabis Regulatory Commission (NJ-CRC), the applicant is ineligible for this program and should not proceed with an application. If an application is received from an applicant that meets this criteria, the application will be declined and the application fee will not be refunded.
Program Documents
2024 NOL Overview webinar on May 9, 2024 at 12PM. Click here to register.
QUESTIONS
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 innovation@njeda.gov.