Quantcast
Home > Financing and Incentives > Innovation Economy Programs > Technology Business Tax Certificate Transfer (NOL) Program
  • Print
  • Send to email


  
  
  


Technology Business Tax Certificate Transfer (NOL) Program



 

New Revised Additional Closing Instructions
 
1. If your Superseded Approval Letter dated January 7, 2020 indicated a change in the award amount AND you already had submitted a fully executed and completed package to NJEDA closing department, you will need to sign the 2019 Supersedes Agreement that includes the clause “WHEREAS, this Agreement supersedes the prior executed Agreement that references the incorrect amount set forth in the NJEDA Approval Letter dated December 11, 2019;” AND complete/sign all new supplemental forms posted on the site.  (no changes were made to supplemental forms)
 
2. If your Superseded Approval Letter dated January 7, 2020 indicated a change in the award amount and document package was fully executed and completed, but not sent to NJEDA you will need to sign the 2019 Supersedes Agreement that includes the clause “WHEREAS, this Agreement supersedes the prior executed Agreement that references the incorrect amount set forth in the NJEDA Approval Letter dated December 11, 2019;” AND complete and sign all new supplemental forms posted on the site.  (no changes were made to supplemental forms)
 
3. If your amount did not change  you do not need to change your agreement and supplemental forms.
 
4. If you had previously not started any paperwork then you can use all original agreements.


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.


  • 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 $15 million per business

  • Uses

    Growth and operations, including working capital or to fund research

  • Benefits

    Ability to turn NOL and R&D tax credits into capital

  • Eligibility

    See “Program Details” below

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 and prepared according to US GAAP.

FEES**:

  • Application fee: $2,500

**All fees are non-refundable

APPLICATION DEADLINE:  Sunday, June 30, 2019 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. 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. A link to the online application is below.


NJ CORPORATE BUSINESS TAX RETURN DEADLINE:

The Applicant Company’s Corporate Business Tax returns, with all required schedules and attachments, must be filed with the NJ Division of Taxation by the application deadline (above). Failure to file by the program deadline will result in the Applicant Company having no available tax benefit for the current program year.

PROGRAM VIDEO PRESENTATIONS: Please click here to view an overview presentation of the program.
 

2019 CLOSING DOCUMENTS

Supersedes Agreement​
Agreement
Business Buying Information Sheet
Closing Instructions
Private Financial Assistance Form
Seller's Closing Certificate
Selling Business ID Form
Spending Certification for Returning Applications

PROGRAM LINKS:

 
* Any proposed amendments to the program rules can be found on the Proposed New Rules/Amendments page

 

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.

ALL EMAILED QUESTIONS AND THEIR RESPONSES ARE CONSIDERED PUBLIC KNOWLEDGE.  THE QUESTIONS AND RESPONSES ARE REVIEWED BY THE DEPUTY ATTORNEY GENERAL'S OFFICE AND POSTED IN THE PROGRAM'S “FREQUENTLY ASKED QUESTIONS” (link above).