High-growth startups in the Garden State have a fresh opportunity to turn their losses into liquidity. The New Jersey Economic Development Authority (NJEDA) announced Friday that applications are officially open for the Technology Business Tax Certificate Transfer Program, widely known as the Net Operating Loss (NOL) program.
The initiative allows early-stage technology and biotechnology companies—which are often research-heavy and not yet profitable—to sell their New Jersey net operating losses and unused research and development (R&D) tax credits to profitable corporations for cash.
For a startup, “red ink” on a balance sheet is often a sign of heavy investment in the future. The NOL program recognizes this by providing a non-dilutive source of capital that can be used for:
- Hiring and Salaries: Attracting top-tier talent to N.J.
- Research & Development: Funding the next breakthrough in life sciences or tech
- Working Capital: Covering the day-to-day costs of scaling a business
A 2025 economic impact assessment highlighted the program’s success, revealing that it has supported 589 recipients who currently employ an estimated 31,200 workers within the state.
To qualify for the program, companies must meet the following criteria:
- Sector: Must be a technology or biotechnology firm
- Size: Must have fewer than 225 U.S. employees
- Location: Must be based in New Jersey.
Of the $75 million available annually, the NJEDA has strategically set aside $15 million specifically for businesses located in Innovation Zones and Opportunity Zones, as well as certified minority- or woman-owned businesses.
The window to secure this funding is limited. Entrepreneurs should take note of the following dates:
- May 1: Applications opened at 10:00 a.m.
- May 21: The NJEDA will host an informational webinar at 12:00 p.m. for prospective applicants.
- June 30: Applications officially close at 11:59 p.m.
