NJEDA to Open Applications for 2024 NOL Program

On Apr 29, 2024

The New Jersey Economic Development Authority (NJEDA) is opening applications for the 2024 Technology Business Tax Certificate Transfer Program, commonly known as the Net Operating Loss (NOL) program, on Wednesday, May 1. The 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 and development (R&D) tax credits to unrelated profitable corporations for cash.

WHAT: The NOL program supports innovative start-ups 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.

WHEN: The NJEDA will begin accepting applications for the 2024 NOL program on Wednesday, May 1 at 12 a.m., and close applications on Thursday, June 30 at 11:59 p.m.

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