Incentive Programs - Technology Business Tax Certificate Transfer Program

IF YOU ARE: An unprofitable New Jersey-based technology or biotechnology company with fewer than 225 U.S. employees (including parent company and all subsidiaries)

YOU CAN APPLY FOR: The ability to sell net operating losses and research and development (R&D) tax credits to unrelated profitable corporations

IN THE AMOUNT OF: 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 $15 million per business

TO BE USED FOR: Growth and operations, including working capital or to fund research

BENEFITS: The Technology Business Tax Certificate Transfer Program enables technology and biotechnology companies that have promise but are not currently realizing a profit to turn net operating losses and R&D tax credits into capital

PROGRAM DETAILS:

  • Up to $60 million is available annually, with $10 million set aside for businesses located in Innovation Zones (any unused balance of the $10 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 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

FEES**:

  • Application fee: $2,500

**All fees are non-refundable

APPLICATION DEADLINE:

Monday, June 30, 2014 11:59 PM.

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. EDA 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. A link to the online application is below.

PROGRAM VIDEO PRESENTATIONS:

 


      
To access the presentation in this video, please click here.




PROGRAM LINKS:

Sample Online Application(for illustrative purposes only - see application link below to apply)
Frequently Asked Questions
Definitions
List of Required Documents (these items must be attached in the online application, if applicable)
Benefit Estimator (for estimate purposes only)
Buyers List

Online Application

TO ANSWER ANY QUESTIONS YOU MAY HAVE, PLEASE FIRST CONSULT WITH THE PROGRAM VIDEOS AND LINKS PROVIDED ABOVE, SUCH AS "FREQUENTLY ASKED QUESTIONS" AND "LIST OF REQUIRED DOCUMENTS".

IF THIS DOES NOT ANSWER YOUR QUESTIONS, PLEASE EMAIL YOUR QUESTIONS AND CONTACT INFORMATION TO NOL@NJEDA.COM.