EDA opens applications for 2017 Technology Business Tax Certificate Transfer Program

Jessica Perry//May 4, 2017

EDA opens applications for 2017 Technology Business Tax Certificate Transfer Program

Jessica Perry//May 4, 2017

The New Jersey Economic Development Authority announced it has started accepting applications online for 2017’s New Jersey Technology Business Tax Certificate Transfer Program.The NOL Program, which is administered by the EDA and the New Jersey Department of Treasury’s Division of Taxation, allows eligible life sciences and tech companies to sell unused New Jersey net operating losses and research development tax credits to unrelated profitable corporations.

Eligible companies interested in the program must apply online by June 30.

“Considered a lifeline by entrepreneurs around the state, no EDA program has been more highly-touted by the technology and biotechnology community than the NOL Program,” EDA CEO Melissa Orsen said. “The non-dilutive cash received through the program has helped hundreds of small businesses get through critical stages of development and ultimately flourish in the Garden State.”

Since the program began, more than 500 companies have been approved for awards totaling more than $905 million, the EDA said. Last year, 40 companies were approved to sell $35 million in benefits.

According to the EDA, Holmdel-based Avlino Inc. participated in the NOL Program for the first time last year. Avlino offers solutions and services in analytics for companies.

“The NOL Program created an opportunity for Avlino to sell back its net-operating losses and R&D tax credits to profitable companies,” Avlino Founder, CEO and President Ramana Jampala said. “Under this program, Avlino was able to reinvest those dollars back into product development and to augment our New Jersey-based team.”

Medical device company Svelte Medical Systems in New Providence and Angel Medical Systems in Shrewsbury have also both benefited from the program.

“It is perhaps the NOL Program that has been the most beneficial to both Svelte and Angel Medical, bringing in millions of dollars over a ten-year period that are non-dilutive to shareholders and help with financing new medical technologies to help people,” Dr. David Fischell, serial entrepreneur and owner of the two companies, said.

CytoSorbents, a Monmouth Junction-based biotechnology business, has used the NOL Program to raise capital as it commercializes its blood purification technology.

A complete list of requirements and program details can be found at http://www.njeda.com/nol.