Christie Administration Approves $60 Million to Grow Biotech/Tech Industry In New Jersey
In support of the Christie Administration's commitment to nurturing the growth of emerging technology and biotechnology businesses, the New Jersey Economic Development Authority (EDA) announced that 54 companies have been approved to share the $60 million allocation available through the State's Technology Business Tax Certificate Transfer (NOL) Program in Fiscal Year 2014.
This competitive program enables technology and biotechnology companies to sell New Jersey tax losses and/or research and development tax credits to raise cash to finance their growth and operations. Since the program was established in 1999, more than 490 different businesses have been approved for awards totaling $770 million. Each of the 54 applicants approved this year will receive an estimated $1.1 million which is a 21 percent increase from last year.
"The NOL Program continues to be the most popular and the most effective support for these early stage companies," said EDA Chief Executive Officer Michele A. Brown. "The Christie Administration understands that the success of the State's greater technology industry is fundamentally tied to the growth of New Jersey's economy. These companies have been able to raise capital and build their businesses in New Jersey as a result of this innovative program. This is exactly the kind of vital support this sector needs."
Administered by the EDA and the Department of Treasury's Division of Taxation, New Jersey-based technology or biotechnology companies with fewer than 225 U.S. employees may be eligible to sell net operating losses and research and development tax credits to unrelated profitable corporations for at least 80 percent of their value, up to a maximum lifetime benefit of $15 million per business.
Companies that benefited this year include: New Brunswick-based Connotate, Inc., a tech company whose aim is to be the best in the world at Web data extraction and monitoring; Princeton Power Systems in Princeton, a designer and manufacturer of technology products for energy management, micro-grid operations and electric vehicle charging; Eagle Pharmaceuticals, a Woodcliff Lake-based pharmaceutical company which develops improved formulations of injectable products. Eagle has a development portfolio in excess of 15 products and currently has one marketed drug; their pipeline provides benefits to the healthcare community at large; and Agilence Inc., of Mount Laurel, an industry leader in the technology behind reporting solutions for retail loss prevention and operations.
The Christie Administration has demonstrated an unprecedented commitment to growing business in New Jersey. The EDA is part of the state's results-driven Partnership for Action. Created by Governor Chris Christie and led by Lieutenant Governor Kim Guadagno, the Partnership is the hub for all economic development activity in New Jersey. It is comprised of three interconnected and highly focused organizational elements, which include Choose New Jersey, Business Action Center, and EDA. The Partnership's goals include attracting new business, and helping existing businesses thrive, in New Jersey by focusing on relationship building and person to person outreach, promoting the state's incentives and resources, developing pro-growth policies, and assisting businesses in navigating state government and programs.
For additional information on the Technology Business Tax Certificate Transfer Program, visit www.njeda.com. To learn more about opportunities for business growth throughout New Jersey, visit the state's business portal at www.NewJerseyBusiness.gov.
Please click here to view the full list of companies.