NJ NOL Transfer Filing Alert

The New Jersey Technology Business Tax Certificate Transfer Program allows qualified companies to sell R&D tax credits and net operating losses. This is a competitive program with $60 million available annually. In 2015 $47.4 million was awarded to 41 companies.The deadline to submit the online application is June 30, 2016. However, there are several factors to be aware of in preparation for your application including the need to have financial statements for the two most recent full years of operation compiled, reviewed or audited by an independent CPA firm. Additional factors affecting eligibility include:

  • must own, have filed for, or have a license to use protected proprietary intellectual property
  • cannot have had positive net operating income on either of its last two full-year income statements according to GAAP
  • must have at least one full-time employee working in New Jersey if incorporated or formed less than three years
  • or five full-time employees in New Jersey if incorporated or formed more than three years but less than five years
  • or 10 full-time employees in New Jersey if incorporated or formed more than five years
  • must have fewer than 225 US employees including parent company and all subsidiaries)

If you have any questions about maximizing your benefits from the program or need assistance in completing an application, please call or email us.

Additional information on the program can be found at the New Jersey Economic Development Authority website.