NJ Approves $60 Million to Grow Tech/Biotech Industry
The New Jersey Economic Development Authority (EDA) announced that 54 companies have been approved to share the $60 million allocation available through the State’s Technology Business Tax Certificate Transfer (NOL) Program in Fiscal Year 2014.
This competitive program enables technology and biotechnology companies to sell New Jersey tax losses and/or research and development tax credits to raise cash to finance their growth and operations. Since the program was established in 1999, more than 490 different businesses have been approved for awards totaling $770 million. Each of the 54 applicants approved this year will receive an estimated $1.1 million which is a 21 percent increase from last year.
Administered by the EDA and the Department of Treasury's Division of Taxation, New Jersey-based technology or biotechnology companies with fewer than 225 U.S. employees may be eligible to sell net operating losses and research and development tax credits to unrelated profitable corporations for at least 80 percent of their value, up to a maximum lifetime benefit of $15 million per business.
Eagle Pharmaceuticals, a Woodcliff Lake-based pharmaceutical company which develops improved formulations of injectable products, is one of the companies that benefited this year. Eagle has a development portfolio in excess of 15 products and currently has one marketed drug; their pipeline provides benefits to the healthcare community at large. A full list of approved companies is here.
The EDA is part of the state’s results-driven Partnership for Action. Created by Governor Chris Christie and led by Lieutenant Governor Kim Guadagno, the Partnership is the hub for all economic development activity in New Jersey. It is comprised of three interconnected and highly focused organizational elements, which include Choose New Jersey, Business Action Center, and EDA. The Partnership’s goals include attracting new business, and helping existing businesses thrive, in New Jersey by focusing on relationship building and person to person outreach, promoting the state's incentives and resources, developing pro-growth policies, and assisting businesses in navigating state government and programs.
For additional information on the Technology Business Tax Certificate Transfer Program, visit www.njeda.com. To learn more about opportunities for business growth throughout New Jersey, visit the state's business portal at www.NewJerseyBusiness.gov.