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TECHNOLOGY BUSINESS TAX CERTIFICATE TRANSFER (NOL) PROGRAM


The 2023 NOL program application window closed on June 30, 2023. The 2024 NOL application window will open in May 2024 and close on June 30, 2024.

The Technology Business Tax Certificate Transfer Program enables qualified, unprofitable NJ-based technology or biotechnology companies with fewer than 225 US employees (including parent company and all subsidiaries) to sell a percentage of net operating losses (NOL) and research and development (R&D) tax credits to unrelated profitable corporations.

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DOLLAR AMOUNT

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

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BENEFITS

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


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TARGET APPLICANTS

Technology and biotechnology companies whose primary business involves the provision of a scientific process, product or service are eligible

<strong>APPLICATION</strong>

APPLICATION

APPLICATION DEADLINE: The 2023 NOL application window closed on June 30, 2023. The 2024 NOL application window will open in May 2024 and close on June 30, 2024.

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.

<strong>PROGRAM DETAILS</strong>

PROGRAM DETAILS

  • 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.

<strong>FEES</strong>

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

PROGRAM GUIDE

WEBINAR

An informational webinar will be held on May 9 at noon. 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 NOL@njeda.gov.