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The basics:

• NJEDA‘s NOL Program generated $28.1B in economic impact in 2024
• Over 87,800 jobs supported, $8.6B in compensation
• $2.84B in tax revenue generated vs. $1.35B in costs since 1999
• 72% of program companies still operating — twice the industry average

A new report assesses the economic impact of the New Jersey Economic Development Authority‘s Technology Business Tax Credit Certificate Transfer Program – aka the Net Operating Loss Program.

Established in 1999, the NOL program allows unprofitable small-to-mid-sized technology and biotech companies in the Garden State to monetize future tax benefits by selling net operating losses and research and development tax credits.

It’s aimed at providing immediate liquidity to enable reinvestment into operations, research, talent acquisition and growth initiatives.

Up to $75 million in funding is available annually under the NOL program. The initiative sets aside $15 million for:

• Businesses located in three Innovation Zones (Newark, Camden and the Greater New Brunswick area);
• Businesses within Opportunity Zones;
• Certified minority or women-owned businesses.

Econsult Solutions Inc. conducted the independent report. The assessment examined the program’s effectiveness through three key dimensions: current footprint of participating companies; economic, employment and tax revenue contributions of these companies to the state; and the long-term performance of these companies, including survival rate and economic contributions.

Econsult conducted the study through data gathering, analysis and industry benchmarking.

Key findings include:

• More than half of the 589 program recipients (313 companies) continue to operate in New Jersey as of 2024
  • 283 companies remain active independently as well as an additional 30 companies acquired by other New Jersey-based entities
• Participating businesses still operating or acquired in New Jersey currently employ an estimated 31,200 workers
• These businesses generated $28.1 billion in direct ($15.3 billion) and indirect ($12.8 billion) economic impact in 2024
• In 2024, NOL program-supported companies generated 56,600 indirect jobs – for a total of 87,800 jobs supported
  • Annual employee compensation totals $8.6 billion; and $715 million in state revenue ($360 million direct, $356 million indirect)
• Since 1999, participating companies have generated an estimated tax impact of $2.84 billion compared with the program cost of $1.35 billion
  • Businesses contribute $2 in state tax revenue for every dollar in tax credits
• 72% actual survival rate of program recipients — more than double the 36% tech industry benchmark
• The full report is available here

Key part of NJEDA toolkit

“Since its launch in 1999, the NJEDA’s NOL Program has provided nearly 600 emerging technology companies with critical growth capital – driving substantial economic returns, reinforcing the state’s leadership in innovation, and supporting thousands of high-quality jobs,” said NJEDA Chief Executive Officer Tim Sullivan.

Kathleen Coviello, NJEDA’s chief economic transformation officer, said the NOL program is an integral part of the agency’s innovation toolkit.

“This economic impact report proves that robust investment in emerging companies results in economic benefits for all New Jerseyans, supporting tax revenues, family-sustaining jobs and inventive new ideas and products,” said Coviello.

“Widely hailed as a financial lifeline for early-stage businesses not yet generating profits, the NOL Program has empowered innovation, fueled job creation, and reinforced New Jersey’s enduring reputation as a national leader in biotechnology and life sciences,” said Debbie Hart, president and CEO of BioNJ. The statewide association has been a key stakeholder in the program’s creation and ongoing success.

Currently open now, the NJEDA notes that applications for the 2025 NOL Program close at 11:59 p.m. June 30. More information is available here.

What recipients are saying

“The NJEDA NOL program has been an invaluable resource for us, providing Oishii with the support needed to accelerate our R&D efforts and drive innovation in indoor vertical farming,” said Brendan Somerville, co-founder and COO at Oishii. “Thanks to their continued partnership, we’ve made significant strides in advancing sustainable technologies and raising the standard of fresh produce in America – all while creating a positive impact right here in New Jersey.”

“We are excited to participate in the NOL program, as having the ability to sell NOLs will improve cash flow and allow us to invest further in our technology,” said Rajesh Saggi, CEO of Moblty. The Livingston-based enterprise software company benefited under the program for the first time this year. “We appreciate the state’s progress, proactive approach to helping emerging companies succeed.”

A big incentive

“Lisata is thrilled to leverage the benefits of the NJ NOL program, which has provided the company with critical non-dilutive fundings for several years,” said David Mazzo, president and CEO of Lisata Therapeutics, a Basking Ridge-based clinical-stage pharmaceutical company. “It has allowed us to translate net operating losses into strategic investments for our pipeline, without diluting ownership for our shareholders. This is a significant financial boost that fuels our ability to deliver potentially life-saving treatments to patients more quickly.”

“For a startup like us, there was no better place to start the company because so many of the large pharma companies and specifically their manufacturing sites are here in the state,” said Angelo Stracquatanio, co-founder and CEO of Apprentice, a Jersey City-based life sciences technology company.

“We looked at Connecticut, New York, and New Jersey – and ultimately chose New Jersey because of its very attractive incentives,” said Valerie Ceva, co-founder and COO of BioAegis Therapeutics. The clinical-stage biopharmaceutical company is based in North Brunswick. “Developing a biologic is incredibly capital-intensive…so anything that can monetize those operating losses now is a great benefit.”

Sameer Malhotra, CEO of TrueFort, a Weehawken-based cybersecurity company, said, “If we had to do it again, we would choose New Jersey because of this program.”