2016 Technology Business Tax Certificate Transfer (NOL) Program Deadline

On Jun 2, 2016

The June 30 application deadline for this year’s Technology Business Tax Certificate Transfer (NOL) Program is rapidly approaching. If interested in participating, a company must submit an application to the New Jersey Economic Development Authority through its online application system and file their Corporate Business Tax Returns with NJ Division of Taxation by this date.

The NOL Program enables eligible technology and biotechnology companies to sell a percentage of their New Jersey net operating losses and/or research and development tax credits for cash.

If interested in this Program for your business or client, please review the information below to help determine program eligibility. Since 1999, more than 500 technology and biotechnology companies have been approved for benefit awards totaling more than $860 million via the annual NOL Program.

Program Eligibility Basics

 

MUST HAVES	WHAT IS IT
Protected & Proprietary Intellectual Property (PPIP)	Pending or Issued Patents, Copyrights, or Licenses These must be the primary business and exclusive to your company.
W2 Full Time Employees	A maximum that live and work in the US = 224 employees A minimum that live and work in NJ = 1, if company formed for less than 3 years 5, if company formed for more than 3 but less than 5 years 10, if company formed 5 or more years These employees must be offered healthcare coverage.
Financial Losses	Net operating loss carryover and/or Research & Development tax credits for NJ No positive net operating income For the last two years
Financial Statements	Financial Statements with all schedules and footnotes prepared according to US GAAP, by an independent CPA (compilation, review or audit are all acceptable.)
Corporate Taxes	Your company must file Corporate Business Tax returns in the State of NJ

 

Deadline
To participate in the 2016 NOL Program, a company must have submitted an application to the NJEDA and filed their Corporate Business Tax Returns with NJ Division of Taxation by June 30, 2016.

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