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Financing Programs - Technology Business Tax Certificate Transfer Program

It’s that time of year again!

The due date for submitting applications for New Jersey’s Technology Business Tax Certificate Transfer Program is June 30, 2011. Therefore, financial statements and New Jersey tax returns should be completed by June 15, 2011 to give ample time for review and submission to the State. See the summary of program details below.
 

IF YOU ARE: An unprofitable New Jersey-based technology or biotechnology company with fewer than 225 U.S. employees (including parent company and all subsidiaries)

YOU CAN APPLY FOR: The ability to sell net operating losses and research and development (R&D) tax credits to unrelated profitable corporations

IN THE AMOUNT OF: Net operating losses and R&D tax credits may be sold for at least 80% of their value, up to a maximum lifetime benefit of $15 million per business

TO BE USED FOR: Growth and operations, either as working capital or to fund research

BENEFITS: The Technology Business Tax Certificate Transfer Program enables technology and biotechnology companies that have promise but are not currently realizing a profit to turn net operating losses and R&D tax credits into capital

PROGRAM DETAILS: 

  • Up to $60 million is available annually, with $10 million set aside for businesses located in Innovation Zones (any unused balance of the $10 million set-aside is reverted to the general program pool)*
  • Only technology and biotechnology companies whose primary business involves the provision of a scientific process, product or service are eligible
  • An eligible company must own, have filed for, or have a license to use protected, proprietary intellectual property (defined as a patent or a registered copyright)
  • An eligible company cannot have had positive net operating income on either of its last two full-year income statements.   In addition, an eligible company cannot have a parent company with positive net operating income, or be part of a consolidated group of affiliates for federal income tax purposes with positive net operating income
  • An eligible company must have at least one full-time employee working in New Jersey if incorporated less than three years, five full-time employees in New Jersey if incorporated more than three years but less than five years, or 10 full-time employees in New Jersey if incorporated more than five years
  • An eligible company must have financial statements for the three most recent full years of operation compiled, reviewed or audited by an independent CPA firm
  • An eligible company must meet specific employment and health insurance requirements in effect by June 30, 2011 

Click on the following link to review the application.
Click on the following link to review Frequently Asked Questions.
Click on the following link for the Buyers List - Technology Business Tax Certificate Program.

FEES**: 

Application fee: $2,500
*For Fiscal Year 2011, the total amount allocated to the program is $30 million, with $5 million set aside for businesses located in Innovation Zones.

**All fees are non-refundable

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