Seventy-five emerging technology and biotech businesses will share a $60 million allocation from New Jersey’s Technology Business Tax Certificate Transfer program, an increase of $30 million from last year’s budgeted amount.
The program, which is administered by the Economic Development Authority and Treasury Department, enables companies to sell tax losses and research and development tax credits to raise cash to finance their growth and operations.
Gov. Chris Christie “understands that the success of New Jersey’s technology and biotechnology sector is intrinsically tied to the growth of the state’s economy,” said Caren S. Franzini, chief executive of the EDA. “The ability to sell losses has proven to be a critical lifeline for early-stage firms, and companies that have been able to raise capital and build their businesses in New Jersey represent the success and effectiveness of this important program.”
Since the program was established in 1999, more than 1,530 applicants have been approved for $630 million. The 75 applicants approved this year will each receive about $800,000 — more than double last year’s average.
New Jersey-based technology or biotech companies with less than 225 U.S. employees may be eligible to sell net-operating losses and R&D tax credits to unrelated profitable corporations for at least 80 percent of their value, up to a maximum lifetime benefit of $15 million per business. Among the companies that have benefited this year are Advaxis, of Princeton; NetForensics, of Edison; Emisphere Technologies, in the Cedar Knolls section of Hanover; and Ewing-based UDC.