First Year Results
Program Summary
July 1, 1999 - June 30, 2000

Basking Ridge, NJ - August 6, 2000 - A total of 100 companies applied to sell their Net Operating Losses and/or Research and Development Tax Credits in the very first year of the Technology and Biotechnology Tax Certificate Program.  Of the 100 applicants 61 companies were approved.  Of these, 59 actually completed the sale of their tax credits, the remaining two companies are still tied up in complex bankruptcy proceedings.

Of the 59 companies which sold just under $50,000,000 of net tax credits, 12 sold directly, through the auspices of the New Jersey Biotechnology Council, to PSE&G or its subsidiary.  Tax Transfer Corporation of New Jersey represented 31 of the remaining 47 companies (66%).

For the majority of our clients Tax Transfer performed a turnkey service.  We took our clients through the entire process by introducing and educating, completing two applications, following the applications through approval, arranging for legal services, preparing all documentation, marketing the credits, as well as going through escrow and the final closing.  All closings (except one) took place within 24 hours of receipt of the tax certificates. 

For the balance of our clients, Tax Transfer strictly acted as a consultant, placing the sellers' credits with buyers.  These clients chose to file their own applications and only wanted the credits placed for them.  Tax Transfer was 100% successful in placing all clients' credits in a timely manner.

Tax Transfer has over 35 companies currently under contract for fiscal year 2001.   It is expected that this number will increase dramatically just prior to the June 30, 2000 deadline for applications.
 

For more specific information please call us.
908-630-0087

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Revised: April 25, 2003