Making $$ from your Tech or Biotech business losses – 2 weeks left to apply

The application deadline for this year’s Technology Business Tax Certificate Transfer (NOL) Program is only two weeks away. If interested in participating, a company must submit an application to the EDA through our online application system and file their Corporate Business Tax Returns with NJ Division of Taxation by 11:59 PM Friday, June 30, 2017.

The NOL Program enables qualified, unprofitable NJ-based technology or biotechnology companies with fewer than 225 US employees to sell net operating losses (NOL) and research and development (R&D) tax credits to unrelated profitable corporations for at least 80% of their value.  This funding can be used for growth and operations, including working capital or research funding.

If this is of interest to 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 $900 million via the annual NOL Program, and many successful companies have previously utilized the NOL Program to gain critical funding in their early stages, when growth capital is traditionally difficult to find.

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

More Information
While this email provides basic information for the NOL Program, additional requirements apply. Please see the NOL Program’s website at www.njeda.com/nolfor additional requirements and how to apply for the program.

The New Jersey Economic Development Authority (NJEDA) is an independent State agency that finances small and mid-sized businesses, administers tax incentives to retain and grow jobs, revitalizes communities through redevelopment initiatives, and supports entrepreneurial development by providing access to training and mentoring programs. For more information on NJEDA’s products and services, please visit www.njeda.com.

About the Author

Richard Gearhart, Esq. is the founder of Gearhart Law and the host of a weekly radio show for entrepreneurs called “Passage to Profit”. He has built a firm with an international presence that helps entrepreneurs from around the world with their patent, trademark and copyright needs. Richard commands a breadth of experience that comes from nearly 30 years of practice in the writing and prosecution of hundreds of patents, and in all aspects of Intellectual Property law. In 2022, Richard was recognized by ROI New Jersey as a 2022 ROI Influencer in the Law List category for being one of the best of the best in New Jersey for intellectual property law. Gearhart Law emerged from Richard’s passion for entrepreneurship and startups and his belief that entrepreneurship grows the economy and creates jobs. When we started Gearhart Law, our goal was to help and support the new business ventures of 500 entrepreneurs and inventors. After 12 years, the firm has far surpassed this goal; today, we look forward to helping even more inventors and entrepreneurs get off to a great start and reach their own goals.