The New Jersey Economic Development Authority has now approved in excess of $1 billion to over 540 technology and life sciences companies through the Technology Business Tax Certificate Transfer Program, or the Net Operating Loss Program, over the last 20 years.
The NOL program allows companies to sell net operating losses and unused research and development tax credits to unrelated profitable corporations for cash. The Department of Treasury’s Division of Taxation and the EDA handle the program.
The program provided 48 companies with a total of $60 million this year, the maximum amount allowed.
The program saw a 27 percent increase in participation from last year, as 14 of the 48 companies are new, with an 18 percent increase in the number of applicants. This was the largest applicant pool since 2014. Each company received $1.25 million on average.
“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 CEO Tim Sullivan said. “This year’s roster of participating companies is doing promising work, and it will be fascinating to watch as they further develop their contributions to the state’s vast body of innovation.”
The EDA said that, while companies in the program come from all over the technology and life sciences industry, there was a specifically strong showing from the biotechnology and health technology sectors.
The companies were approved in August and were notified of their allocation earlier this week.