Looking to sell your loss for money? Who isn’t?
If you’re an emerging technology or life sciences company in New Jersey, you only have a few more days of eligibility to do just that in the New Jersey Economic Development Authority’s Net Operating Loss Program.
Applications (found here) are due by Wednesday (June 30).
New Jersey’s NOL Program enables the state’s early-stage technology and life sciences companies to sell their New Jersey net operating losses and unused research & development tax credits to unrelated, profitable corporations for cash.
Hailed by the state as a lifeline for companies that have not yet reached profitability, the capital raised through this program can be used for costs including, but not limited to, the expenses of fixed assets, such as the construction, acquisition and development of real estate; materials; startup; tenant fit-out; working capital; salaries; and R&D expenditures.
Read more from ROI-NJ:
To date, more than $1.07 billion in funding has been distributed to over 550 technology and life sciences companies since the program’s inception in the late 1990s. In 2020, 49 companies were approved to sell a combined $54 million through the program. The average award for companies approved to sell their net operating losses through the program last year was $1.1 million.
The program, which was expanded in January as part of the Economic Recovery Act, has an annual cap of $75 million — with a $20 million lifetime cap for an individual applicant.
The program is jointly administered by the EDA and Department of the Treasury’s Division of Taxation.
“Our top priority as we continue to recapture New Jersey’s role as a leader in innovation is ensuring that emerging companies have access to the capital they need to grow and thrive in our state,” EDA CEO Tim Sullivan said. “Entrepreneurs frequently cite the enormous impact of our NOL Program on their companies’ success.”
