Incentive Programs - Technology Business Tax Certificate Transfer Program

Beginning in 2014, the application and payment process for Technology Business Tax Certificate Transfer (NOL) Program will be completely online. The online application will be available shortly. Please email any questions to NOL@njeda.com

On April 17, 2013 EDA hosted the 2013 Technology Business Tax Certificate Transfer Program Webinar. Please see the below links for information from the webinar.

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, either as 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 less than three years, five full-time employees in New Jersey if incorporated more than three years but less than five years, or 10 full-time employees in New Jersey if incorporated 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

Click on the following link to review Frequently Asked Questions
Click on the following link to review Buyers List for the Technology Business Tax Certificate Program.

FEES**:

  • Application fee: $2,500

**All fees are non-refundable