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June 28 Is Deadline for High-Tech Companies to Raise Cash to Support Growth Through EDA Technology Tax Transfer Program.



Business Editors & High-Tech high-tech also hi-tech
adj. Informal
Of, relating to, or resembling high technology.


high-tech
Adjective

same as hi-tech

Adj. 1.
 Writers

TRENTON Trenton, town, Canada
Trenton, town (1991 pop. 16,908), SE Ont., Canada, on the Bay of Quinte at the mouth of the Trent River and at the south end of the Trent Canal. Its manufactures include textiles, electronic components, and paper and steel products.
, N.J.--(BUSINESS WIRE)--May 31, 2002

High-technology and biotechnology businesses have until June June: see month.  28, 2002 to apply to New Jersey's Technology Business Tax Certificate Transfer Program to raise cash to finance their growth and operations.

The competitive program enables high-tech companies to sell tax losses or research and development tax credits to other businesses. It is administered by the New Jersey Economic Development Authority The New Jersey Economic Development Authority (EDA) is an independent, quasi-governmental self-supporting entity in the U.S. state of New Jersey dedicated to broadening and expanding the state's economic base.  (EDA (1) (Electronic Design Automation) Using the computer to design, lay out, verify and simulate the performance of electronic circuits on a chip or printed circuit board. ) in conjunction with the New Jersey Division of Taxation and the New Jersey Commission on Science and Technology. Approvals are made in early fall.

"Last year, a record 119 companies were approved to share the $40 million available annually through the program," said EDA Executive Director Caren S. Franzini. "Now in its fourth year, the program has proven to be an effective financing tool that many high-tech companies have used to strengthen and build their business."

To be eligible for the program, a company must be a new or expanding technology or biotechnology business that has a maximum of 225 employees and bases at least 75 percent of its workforce in New Jersey. The program enables such companies to sell unused Net Operating Loss operating loss

The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income.
 (NOL NOL - Never Offline ) carryforwards Carryforwards

Tax losses allowed to be applied to offset future income in some specified number of future years.
 and unused research and development tax credits to other New Jersey corporations for at least 75 percent of their value.

In turn, companies selling NOLs or research and development tax credits are able to use the money they receive to finance business expenses including the purchase of equipment, facility expansions or working capital.

Companies can apply more than once for assistance through the program subject to a total lifetime cap of $10 million. Companies purchasing NOLs or tax credits must do a portion of their business in New Jersey.

Applications are reviewed by the Division of Taxation to establish the value of the tax loss or tax credit benefit. The Commission on Science and Technology reviews the applications for technology qualifications. The EDA makes the final determination on eligibility. When an application is approved, a certificate is issued that identifies the value of the tax benefit being exchanged and transfers it from the selling to the buying company.

Applications are available online by visiting www.njeda.com and accessing Resources/Applications/New Applicants Selling Business Application.

The EDA was created in 1974 to promote economic growth and create jobs. For more information about the Technology Business Tax Certificate Transfer Program or other lending programs, call the EDA's Commercial Lending Division at 609/292-0187, or send an e-mail to cld@njeda.com.
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Copyright 2002, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Date:May 31, 2002
Words:418
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