The New Jersey Economic Development Authority announced Tuesday that it is accepting applications for its 2022 Net Operating Loss program.
The EDA is accepting applications online through June 30. Apply here.
The NOL program, which is jointly administered by the NJEDA and the New Jersey Department of Treasury’s Division of Taxation, enables early-stage technology or life science companies to sell a percentage of their net operating losses and unused research & development tax credits to unrelated, profitable corporations for cash.
Participants can use the capital raised through the NOL program to help cover allowable costs incurred in connection with the operating their business, such as salaries, R&D and other working capital expenditures.
Since the program’s inception in the late 1990s, $1.126 billion in funding has been distributed to more than 570 technology and life sciences companies. The average award for companies approved to sell their net operating losses through the program in 2021 was $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,” NJEDA Chief Economic Transformation Officer Kathleen Coviello said. “Connecting early-stage businesses with access to non-dilutive funding and helping them fuel their growth are key to achieving Gov. (Phil) 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.”
Coviello noted that $15 million of the $75 million program allocation will be reserved for the surrender of transferable tax benefits exclusively by eligible companies operating within the boundaries of the state’s three Innovation Zones of Newark, Camden and the Greater New Brunswick area, companies located in Opportunity Zones and/or women- or minority-owned businesses certified by the state of New Jersey.