24 NJ Tech Firms Take Advantage of 2014 Business Tax Certificate Transfer Program

Each year, the New Jersey Economic Development Authority (EDA) announces the names of the companies that have been approved to share in the Technology Business Tax Certificate Transfer Program for the next fiscal year 2014. Last year’s list appears here.

This year, there are 24 companies classified as tech on the list. In total, 54 applicants were approved to share in the $60 million allocation for this program.

Basically, the program lets tech and biotech companies with protected intellectual property sell their New Jersey tax losses and/or research-and-development tax credits to raise cash to finance their growth and operations.

The EDA says that since the program was established in 1999, more than 490 different businesses have been approved for awards totaling $770 million.

The tech companies on this list will receive an estimated $1.1 million each, a 21-percent increase from last year, the EDA said. The program is administered by the EDA and the Department of Treasury’s Division of Taxation.

New Jersey biotech or tech companies with fewer than 225 U.S. employees are eligible to sell their losses. The buyers for these tax losses or R&D grants are successful and profitable New Jersey companies who buy the credit at a discount, and can use 100 percent of the face value to offset New Jersey tax liabilities, a spokesman for the New Jersey EDA said.