Until PM Business Advisors (PMBA) reached out, Arable was not aware of New Jersey tax incentives, including the New Jersey R&D tax credit and the Technology Business Tax Certificate Transfer Program, which enables qualified, unprofitable NJ-based technology or biotechnology companies with fewer than 225 U.S. employees to sell a percentage of net operating losses (NOL) and research and development tax credits to unrelated profitable New Jersey corporations.
Adam Wolf learned about these incentives when PMBA’s National Tax Credit Practice reached out to him via email. According to Wolf, “I was intrigued, and we had an initial conversation. They were smart and utterly clear about how it works, but I thought it was too good to be true. I checked with our tax accountant, and sure enough, this was real. For every start-up, cash is king. I know it’s more complicated than this, but to me, it amounts to free money on the table, and it’s obvious to take advantage of it.”
Wolf did some homework and was impressed with PMBA’s reputation in the industry and decades of experience in this narrow line of business. Arable launched a partnership with PMBA to establish its qualifications for the incentive programs and make the application.
Arable’s application for the incentives was filed with the New Jersey Economic Development Authority (NJEDA). Its corporate business tax returns were filed in time for the deadline for June 30 of the application year – 2017.
To be certain that the application was complete, PMBA followed an internal practice of submitting a pre-application to the NJEDA for review and comment. PMBA also took the application through its own checklist process at least three times to be certain that the NOLs were accurately reflected.