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NJEDA Opens Application for 2021 Net Operating Loss Program
On May 6, the New Jersey Economic Development Authority (NJEDA) announced that it is currently accepting applications for its 2021 Net Operating Loss (NOL) Program, which was recently expanded as part of the New Jersey Economic Recovery Act of 2020. The NOL Program enables early-stage technology and life sciences companies in the Garden State to sell their New Jersey net operating losses and unused research and development (R&D) tax credits to unrelated profitable corporations for cash. The NJEDA is accepting applications online through June 30, 2021 at http://www.njeda.com/nol.
The NJEDA will host an informational webinar about the NOL Program on Tuesday, May 18, at noon to review eligibility requirements with potential applicants. Webinar registration information can be found at https://www.njeda.com/event/2021-nol-program-launch/. A recorded version of the webinar will be made available on the NJEDA’s webpage following the event at http://www.njeda.com/nol.
A profitable company can purchase tax credits at a discount, based on the market price at the time. These tax credits have traditionally traded somewhere between 88 and 94 cents on the dollar. Once purchased, the tax credits can then be applied to reduce the buyer’s state tax obligation. The names of the buyers who chose to be publicly listed are on the NOL Program’s website. Entities interested in becoming a buyer through the NOL Program can visit the website http://www.njeda.com/nol or reach out via email nol@njeda.com for more information.
To read the press release, click here.
Please reach out to Hilary Chebra, Manager, Government Affairs at hchebra@chambersnj.com if you have any questions.
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