EDA to open applications for 2024 NOL program on May 1

The New Jersey Economic Development Authority will open the application process for the 2024 Technology Business Tax Certificate Transfer Program, commonly known as the Net Operating Loss program, on May 1.

The popular NOL program allows early-stage technology and life sciences companies in New Jersey to sell a percentage of their net operating losses and unused research & development tax credits to unrelated profitable corporations for cash.

The NOL program supports innovative startups by enabling qualified, unprofitable New Jersey-based technology or biotechnology companies with fewer than 225 U.S. employees to sell a percentage of their net operating losses and R&D tax credits.

Up to $75 million in funding is available annually under the NOL program, with $15 million set aside for businesses located in the state’s three Innovation Zones of Newark, Camden and the Greater New Brunswick area, businesses within Opportunity Zones or certified minority- or woman-owned businesses.

Participants can use the capital raised through the NOL program to help cover allowable operating costs such as salaries, R&D and other working capital expenditures.

Since the program’s inception over 25 years ago, the NOL program has awarded more than $1.95 billion in tax credits to over 580 innovative companies in New Jersey.

The program, which opens at 12 a.m. May 1, will close at midnight June 30.

For more information, click here.

For more information on eligibility and the application process, the EDA is hosting an informational webinar at noon May 9.

To register, click here.