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NET OPERATING LOSS (NOL) PROGRAM ERA-UPDATE


The expanded Net Operating Loss (NOL) Program enables tech and life sciences companies to sell their New Jersey net operating losses and/or research and development (R&D) tax credits for cash. Buyers can purchase tax credits at a discount and apply them to reduce taxable income.   

Click here to learn more about the 2021 program application.

ELIGIBILITY

In order to participate in the NOL Program, a company must:

  • Have protected and proprietary intellectual property (PPIP that is exclusive to the applicant company).
  • Employ up to 225 full-time employees that live and work in the United States and who receive health care coverage. At least a portion of these employees must live and work in New Jersey.
  • Have net operating loss carryover and/or R&D tax credits in New Jersey.
  • Have NO positive net operating income for the last two years.
  • File Corporate Business Tax returns in New Jersey.

The statute creating the NOL Program is available here: Statutes

The NOL Administrative Code is available here: Administrative Code

The NOL Program was updated as part of the NJ Economic Recovery Act of 2020. The full statutory update can be found in sections 113-114.