NJEDA’s NOL Program Generates $28.1B in Economic Impact

On May 20, 2025

The New Jersey Economic Development Authority (NJEDA) has released findings from an economic impact assessment of the Technology Business Tax Credit Certificate Transfer Program, better known as the Net Operating Loss (NOL) Program.

More than half of the 589 NOL program recipients since inception continue to operate in New Jersey, the report found, employing an estimated 31,200 workers in the state and generating $28.1 billion in direct and indirect economic impact in 2024. Since 1999, participating companies have generated an estimated tax impact of $2.84 billion compared to a program cost of $1.35 billion, contributing $2 in state tax revenue for every dollar in tax credits. The actual survival rate of program recipients is 72 percent, more than doubling the technology industry benchmark of 36 percent.

“Since its launch in 1999, the NJEDA’s NOL Program has provided nearly 600 emerging technology companies with critical growth capital—driving substantial economic returns, reinforcing the state’s leadership in innovation, and supporting thousands of high-quality jobs,” NJEDA Chief Executive Officer Tim Sullivan.

BioNJ President and CEO, Debbie Hart said the life sciences trade group is “honored to have played a pivotal role alongside our legislative partners and the NJEDA in the creation and ongoing success of the groundbreaking NOL Program. Widely hailed as a financial lifeline for early-stage businesses not yet generating profits, the NOL Program has empowered innovation, fueled job creation, and reinforced New Jersey’s enduring reputation as a national leader in biotechnology and life sciences.”

Up to $75 million in funding is available annually under the NOL program, with $15 million set aside for businesses located in the state’s three Innovation Zones of Newark, Camden, and the Greater New Brunswick area, businesses within Opportunity Zones, or certified minority or woman-owned businesses. Participants can use the capital raised through the NOL Program to help cover allowable costs incurred in connection with operating their businesses such as salaries, R&D, and other working capital expenditures.

“The NOL Program is an integral part of the NJEDA’s innovation toolkit, contributing to a thriving startup ecosystem in the state that includes support from academia, government, and the private sector,” said NJEDA’s Chief Economic Transformation Officer Kathleen Coviello. “This economic impact report proves that robust investment in emerging companies results in economic benefits for all New Jerseyans, supporting state tax revenues, family-sustaining jobs, and inventive new ideas and products.”

The independent report, which was conducted by Econsult Solutions Inc., was conducted through data gathering, analysis, and industry benchmarking to assess the program’s outcomes, ensuring an impartial and data-driven assessment of the program’s impact. The full report can be found here.

Applications for the 2025 NOL program are open and will close at 11:59 p.m. Eastern Daylight Time on Monday, June 30th. For more information on program eligibility and application requirements, visit http://www.njeda.gov/nol.

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