The Net Operating Loss program of the N.J. Economic Development Authority has generated $28.1 billion in direct and indirect economic impact, an EDA report said.
According to the EDA, more than half of the 589 program recipients continue to operate in New Jersey since the program’s inception in 1999, with an additional 31,200 workers in the state.
Since 1999, participating companies have generated an estimated tax impact of $2.84 billion compared to a program cost of $1.35 billion, contributing $2 in state tax revenue for every dollar in tax credits. The actual survival rate of program recipients is 72 percent, more than doubling the technology industry benchmark of 36 percent.
Up to $75 million in funding is available annually under the NOL program, with $15 million set aside for businesses located in the state’s three Innovation Zones of Newark, Camden, and the Greater New Brunswick area, businesses within Opportunity Zones, or certified minority or woman-owned businesses.
Participants can use the capital raised through the NOL Program to help cover allowable costs incurred in connection with operating their businesses such as salaries, R&D, and other working capital expenditures.
Applications for the 2025 NOL program are open and will close at 11:59 p.m. on June 30. For more information on program eligibility and application requirements, click here.
EDA CEO Tim Sullivan said the numbers speak for themselves — but then added a few words of his own.
“Since its launch in 1999, the NJEDA’s NOL Program has provided nearly 600 emerging technology companies with critical growth capital — driving substantial economic returns, reinforcing the state’s leadership in innovation, and supporting thousands of high-quality jobs,” he said.
BioNJ CEO Debbie Hart said the program is a key to helping early business — and certainly has been helpful in the life sciences sector.
“BioNJ is honored to have played a pivotal role alongside our legislative partners and the New Jersey Economic Development Authority in the creation and ongoing success of the groundbreaking Net Operating Loss Program,” she said.
“Widely hailed as a financial lifeline for early-stage businesses not yet generating profits, the NOL Program has empowered innovation, fueled job creation, and reinforced New Jersey’s enduring reputation as a national leader in biotechnology and life sciences.” The independent report, conducted by Econsult Solutions Inc., was conducted through data gathering, analysis, and industry benchmarking to assess the program’s outcomes, ensuring an impartial and data-driven assessment of the program’s impact. The full report can be found here.
