NJEDA’s NOL program at 20: $1B funded

The New Jersey Economic Development Authority is marking dual milestones for its Technology Business Tax Certificate Transfer Program, or Net Operating Loss Program: its 20th anniversary and topping $1 billion in provided funding.

Through the NOL program the NJEDA has provided support to more than 540 technology and life sciences companies since its inception.

In 2018, the EDA said, 48 companies – including 14 new to the program – have been approved for the program to share the maximum allocated amount of funding, $60 million. The average award was $1.25 million.

There was a 27 percent increase in the number of companies admitted and an 18 percent increase in the number of applicants compared to 2017, the agency said.

“The vision Gov. Phil Murphy has laid out for the innovation economy reiterates the need for tools like the NOL Program to fuel technology and life sciences companies’ growth from their earliest stages through commercialization and beyond,” EDA Chief Executive Officer Tim Sullivan said in a release.

A considerable number of this year’s participants hail from the areas of biotechnology and health technology, according to the EDA.

NOL allows eligible companies to sell state net operating losses and unused R&D tax credits to unrelated profitable companies for cash, which can in turn be used to fund research or as working capital.

The program is administered by the EDA with the Division of Taxation.

A chart with the complete list of 2018 recipients follows.