NJEDA Reminds Tech & Life Sciences Community of Upcoming NOL Program Application Deadline
Early-Stage Companies Have Until June 30 to Apply to Sell their Net Operating Losses for Cash
TRENTON, N.J. (June 25, 2021) – The New Jersey Economic Development Authority (NJEDA) today reminded New Jersey’s emerging technology and life sciences companies that they have until June 30 to apply to the state’s Net Operating Loss (NOL) Program. The application can be found at https://www.njeda.com/nol/.
New Jersey’s NOL Program enables the state’s early-stage technology and life sciences companies to sell their New Jersey net operating losses and unused research and development (R&D) tax credits to unrelated profitable corporations for cash. Hailed as a lifeline for companies that have not yet reached profitability, the capital raised through this program can be used for costs including, but not limited to, the expenses of fixed assets, such as the construction, acquisition and development of real estate; materials; start-up; tenant fit-out; working capital; salaries; and R&D expenditures. The NJEDA and the New Jersey Department of Treasury’s Division of Taxation jointly administer the program.
To date, more than $1.07 billion in funding has been distributed to over 550 technology and life sciences companies since the program’s inception in the late 1990s. In 2020, 49 companies were approved to sell a combined $54 million through the program. The average award for companies approved to sell their net operating losses through the program last year was $1.1 million.
The NOL Program was expanded in January 2021, when Governor Phil Murphy signed the New Jersey Economic Recovery Act of 2020. Part of the Act increased the program’s annual cap from $60 million to $75 million. It also increased the lifetime cap for an individual applicant from $15 million to $20 million.
“Our top priority as we continue to recapture New Jersey’s role as a leader in innovation is ensuring that emerging companies have access to the capital they need to grow and thrive in our state,” said NJEDA Chief Executive Officer Tim Sullivan. “Entrepreneurs frequently cite the enormous impact of our NOL Program on their companies’ success. Now, thanks to enhancements made through the New Jersey Economic Recovery Act of 2020 by Governor Murphy, we will be able to support even more early-stage businesses in the years ahead.”
About the New Jersey Economic Development Authority
The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.
To learn more about NJEDA resources for businesses call NJEDA Customer Care at 609-858-6767 or visit https://www.njeda.com and follow @NewJerseyEDA on Facebook, Twitter, Instagram, and LinkedIn.
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