Withum Spotlight: 2018 NJ NOL and R&D Credit Program

Life Sciences

The mission of the New Jersey Economic Development Authority (“NJEDA”) is to assist small and mid-sized businesses through incentives and initiatives to grow and retain jobs and revitalize communities throughout the state. One of the more popular programs is the Technology Business Tax Certificate Transfer (NOL) Program. The program enables qualified technology and life science companies to sell their unused New Jersey net operating losses and research and development (R&D) tax credits.

For details on eligibility, the process, and the program’s requirements, click here.

As the applications are due annually by June 30, Withum has emerged as a leader in this space by increasing our annual involvement with the program. Our nationally ranked advisory, tax, and audit firm have made great strides to be at the forefront of this opportunity. We have assisted in varying capacities of the process, and for the June 30, 2018 application period, all applicants that Withum assisted were recommended for approval by the state.

The program’s annual allotment of $60 million in tax benefits helps fund innovation and creativity for those who participate in the program. For the June 30, 2018 application period, the program was oversubscribed, which shows its ever-growing popularity. Due to the oversubscription, any tax benefits that were approved but not transferred will be available for sale in future years. Withum’s clients were approved to sell nearly $21.5 million in tax benefits, which represents more than 35% of the program’s annual allotment.

Withum’s clients will receive over $20 million from the program, which will be reinvested in the state, spur innovation and lead to economic growth in New Jersey. Withum’s Technology and Life Science groups serve a diverse client base throughout the state and focus on partnering with them from early-stage to maturity. Our expertise in this area strengthens that partnership and puts your business in a Position of Strength.

To learn more about how Withum can help strategically partner with you regarding this and other NJEDA initiatives, please contact Taryn Bostjancic, Practice Leader, Life Sciences or Chris DeMayo, Practice Leader, Technology Services.

Author:Shawn Henderson, CPA |[email protected]

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