The New Jersey Economic Development Authority (NJEDA) announced Oct. 11 that 24 early-stage technology and biotechnology companies were approved to participate in this year’s Net Operating Loss (NOL) Program.
Now in its 23rd year, the program allows participating companies to sell their New Jersey net operating losses and unused R&D tax credits to corporations for cash. It is jointly administered by the NJEDA and New Jersey Department of Treasury’s Division of Taxation.
This year’s crop of companies will receive approximately $75 million to fund working capital or R&D. In 2022, the average award for approved companies selling their net operating losses through the program was over $3.1 million.
Three of this year’s group – Citius Pharmaceuticals Inc., IVERIC Bio Inc. and Rafael Holdings Inc. – are participating for the first time. To date, the program has distributed more than $1.17 billion in funding to over 570 technology and life science companies.
“One of the many advantages of the NOL program is that enables growing companies to obtain cash without sacrificing equity,” said NJEDA Chief Executive Officer Tim Sullivan.
This is the second year since the program’s annual cap increased from $60 million to $75 million stemming from the New Jersey Economic Recovery Act of 2020.
“Legislation created under the ERA has been extremely beneficial to New Jersey’s innovation community and to NOL Program participants in particular,” said NJEDA Chief Economic Transformation Officer Kathleen Coviello. “Companies that had previously maxed out of the program are able to participate once again due to the increased cap the Act provides to individual businesses. That extra capital has been instrumental in helping young companies commercialize their products and bring them to market.”
* New program participants=