New Jersey Opens NOL Program for Unprofitable Tech Companies

The New Jersey Economic Development Authority has opened the application window for the 2026 Technology Business Tax Certificate Transfer Program (the NOL program), with applications due no later than June 30, 2026. 

The NOL program allows approved growth-stage technology and biotechnology companies to sell a portion of their net operating losses (NOLs) and unused research and development (R&D) tax credits to unrelated, profitable New Jersey corporations. NOLs and R&D credits can be sold for at least 80% of their value, up to a maximum lifetime benefit of $20 million per business. 

Eligibility Criteria

• Industry: Only technology and biotechnology companies whose primary business involves the provision of a scientific process, product, or service.
• Intellectual Property: Applicants must own, have filed for, or be licensed to use protected, proprietary intellectual property, defined as patents or registered copyrights.
• Financial Position: The company must have no positive net operating income in either of its two most recent full-year GAAP financial statements. This requirement also applies to a parent company and/or to a U.S. federal consolidated group that the technology or biotechnology company is related to. According to GAAP, the two most recent full-year financial statements must be compiled, reviewed, or audited by an independent CPA firm.
• Employees: A company can have no more than 224 U.S. employees. Also, the minimum number of New Jersey full-time employees based on company age is:
  • One employee if company age is less than three years;
  • Five employees if company age is three to five years; and
  • Ten employees if company age is greater than five years.
• Deadline: The corporate business tax return must be filed with the New Jersey Division of Taxation no later than June 30, 2026.

Application Details

The application and $1,000 application fee must be submitted via the online application. Documentation must be provided to substantiate eligibility, as indicated on this sample document. 

For any tax benefit award greater than $100,000, a company must pay an approval fee of 1% of the tax benefit award, with a maximum fee of $20,000. The application fee is credited toward the approval fee.