New Jersey Technology Business Tax Certificate Transfer Program (NOL)
New Jersey Economic Development Authority (NJEDA)
Up to $20M lifetime
Turn NJ tax losses into cash without equity dilution
Allows early-stage New Jersey technology and life sciences companies to sell their unused net operating losses (NOLs) and R&D tax credits to profitable corporations for cash — typically at 80–90 cents on the dollar. Companies that aren't yet profitable get real cash without giving up equity. Annual program with a $60M statewide cap; individual lifetime cap of $20M per company.
- Funding type
- Tax Credit
- Level
- State
- Amount range
- $20,000,000
- Realistic amount
- Early-stage companies with 1–5 years of losses typically receive $500K–$3M in a first sale. Series A–B stage tech compan…
- Deadline
- Annual — check njeda.gov/nol for current cycle open/close dates. Application typically opens winter and closes spring.
- Status
- active
- States
- NJ
- Payment model
- lump sum
Who qualifies
- Company must hold valid New Jersey net operating loss carryover and/or New Jersey R&D tax credits
- Must be an emerging technology, clean technology, or biotechnology company with a physical presence in New Jersey
- Must conduct research, manufacturing, or technology commercialization in New Jersey
- Must employ at least 75% of employees in New Jersey who are covered by health benefits
- Must employ no more than 225 full-time employees total in the U.S.
- Must not have had positive net operating income for the 2 most recent tax years
- Must file a New Jersey Corporate Business Tax return
- Must possess protected and proprietary intellectual property (PPIP) exclusive to the company
Hard requirements
- Must be incorporated
- Max 225 employees
What it covers
Eligible expenses
- Unrestricted — cash proceeds from the NOL/credit sale can be used for any business purpose
- R&D expenses, lab equipment, clinical trials
- Salary and benefits for NJ-based employees
- Working capital and operational expenses
- Capital equipment purchases
Ineligible expenses
- No expense restrictions apply — proceeds are unrestricted once received
- However, the program itself cannot be used to offset already-paid taxes — only future tax obligations of the buyer are affected
How to apply
-
1
Confirm eligibility with NJEDA
Contact NJEDA to verify you meet the employee count, profitability, and IP requirements before investing time in the application. NJEDA staff can provide a preliminary eligibility determination and estimate the likely NOL/credit balance eligible for sale.
~5 hrs
-
2
Gather NJ tax documentation
Pull NJ Corporate Business Tax returns for 2 prior years, NJ NOL carryforward schedule, and NJ R&D credit calculations. You'll need exact NJ-specific figures — federal NOLs are a different and inapplicable figure.
~5 hrs
-
3
Submit application to NJEDA during open window
Complete the application at njeda.gov including company financials, employee count, IP certification, and NJ tax documentation. NJEDA works with the NJ Division of Taxation to verify the NOL/credit balance.
~5 hrs
-
4
NJEDA matches company with a buyer corporation
NJEDA facilitates the sale of your NOL/credit certificate to a profitable NJ corporation willing to purchase it. The transaction price is negotiated but typically 80–90 cents on the dollar. Buyer corporations reduce their NJ tax liability; company receives cash.
~5 hrs
-
5
Receive cash proceeds
Upon completion of the transfer, cash proceeds are wired to the company. The entire process from application to cash receipt typically takes 3–6 months.
~5 hrs
The $75M statewide cap ($15M reserved for priority categories) fills fast in hot years — apply on the first day the window opens. MBE/WBE-certified companies get access to the $15M priority set-aside, reducing competition. A CPA who has processed prior NJ NOL applications is worth having; incorrect NJ-specific NOL calculations are the top rejection reason.
Deadline & timing
Program runs annually with a $75M statewide cap ($15M reserved for Innovation Zone / Opportunity Zone / certified MBE-WBE businesses). Once the cap is reached, no additional applications are accepted for that cycle. Apply early — in high-demand years the cap has been hit within weeks of opening.
Programs that stack well
Related programs
Last reviewed 2026. GrantCompass is an independent funding-discovery tool and is not affiliated with any government agency. Always confirm details on the official program page.