State program
New Jersey Research and Development Tax Credit
A generous credit paired with a technology transfer program that lets loss-making companies sell unused credits for cash.
Program overview
New Jersey computes its research credit largely by reference to federal Section 41 as it applied before certain federal amendments, and the state made the credit permanent with no expiration. The state's Technology Business Tax Certificate Transfer Program is the standout feature: qualifying emerging technology and biotechnology companies may sell unused research credits and net operating losses to unrelated New Jersey taxpayers, converting paper credits into working capital. The program is administered by the New Jersey Economic Development Authority under an annual pool.
Eligibility
Corporations subject to New Jersey corporation business tax with qualified research expenses in New Jersey. Credit sales require NJEDA approval and technology or biotechnology business status.
Benefits
Non-refundable credit against corporation business tax; qualifying companies may sell unused credits for approximately 80 cents on the dollar.
Find out what your research actually qualifies for
A scoping conversation takes thirty minutes and costs nothing. You leave with a view on eligibility, likely credit range and the documentation you would need.