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New Jersey Approves $60 Million for TechBio Industry

November 16, 2011

Supporting New Jersey Gov. Chris Christie commitment to economic development and job growth, the New Jersey Economic Development Authority (EDA) announced that 75 emerging technology and biotechnology businesses have been approved to share the $60 million allocation available through the State of New Jersey’s innovative Technology Business Tax Certificate Transfer Program. Governor Christie’s Fiscal Year 2012 budget increased funds by $30 million over last year’s allocation.

The program allows 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, over 1,530 applicants have been approved for $630 million. The 75 applicants approved this year are estimated to receive, on average, approximately $800,000, more than double last year’s average.

“Governor Christie understands that the success of New Jersey’s technology and biotechnology sector is intrinsically tied to the growth of the state’s economy,” said EDA CEO Caren S. Franzini. “The ability to sell losses has proven to be a critical lifeline for early-stage firms, and companies that have been able to raise capital and build their businesses in New Jersey represent the success and effectiveness of this important program.”

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 Princeton-based Advaxis, a biotechnology company developing immunotherapies for cancer and infectious diseases; netForensics of Edison, a security company that helps enterprises, managed service providers, and government agencies manage risk, protect critical assets, and maintain compliant operations; Cedar Knolls-based Emisphere Technologies, Inc., a biopharmaceutical company that focuses on a unique and improved delivery of pharmaceutical compounds, medical foods and dietary supplements using its Eligen Technology; and, UDC. of Ewing, a company engaged in the research, development and commercialization of organic light emitting diode technology.

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