The New Jersey Economic Development Authority opened applications for the 2022 Technology Business Tax Certificate Transfer Program, commonly known as the Net Operating Loss (NOL) Program, on May 3.
The NOL Program allows New Jersey technology and life sciences companies to sell their net operating losses and unused research and development tax credits to unrelated profitable corporations for cash. It has been hailed as a lifeline for companies that have yet to reach profitability.
The capital raised through the program can be used to defray operating costs, such as salaries, R&D and other expenditures. NOL is jointly administered by the NJEDA and the New Jersey Department of Treasury’s Division of Taxation.
Since its inception in the late 1990s, $1.126 billion has been distributed to more than 570 technology and life sciences companies. On average in 2021, approved companies were awarded $1.82 million.
“Innovative New Jersey companies will be able to benefit from enhancements made to the NOL Program by the ERA as they work toward commercialization,” said NJEDA Chief Economic Transformation Officer Kathleen Coviello. “Connecting early-stage businesses with access to non-dilutive funding and helping them fuel their growth are key to achieving Governor Murphy’s goal of recapturing New Jersey’s role as a leader in innovation. We look forward to supporting even more young companies as a result of expanding this critical program.”
Approximately $15 million of the $75 million program allocation is reserved for eligible companies operating within the State’s three Innovation Zones of Newark, Camden and the Greater New Brunswick area, and/or women- or minority-owned businesses.
The NJEDA is accepting applications online through June 30, 2022.
