PSE&G

PSE&G Tax Benefit Purchase Program Helps
Tech Firms Through Critical Development Stage

For many years PSE&G has supported economic development in New Jersey. Recently, these efforts have focused on the high technology and life sciences industries. These cutting-edge business sectors are vital to the state’s prosperity, and critical to the continued creation of high-level jobs that will sustain New Jersey’s future technological leadership and economic growth.

One innovative tool used by PSE&G to foster high tech growth in New Jersey is the state’s Emerging Technology and Biotechnology Financial Assistance Program, often referred to as the Tax Benefit Transfer Program. Under this program, technology and life sciences firms can sell unused net operating loss carry forwards and R&D credits (Benefits) to established companies that have the need for them. These losses and R&D credits are customarily incurred by firms during their crucial developmental stage, and the ability to sell Benefits gives growing firms a much-needed infusion of cash.

PSE&G Has Purchased $70M Benefits from Technology and Life Science Companies.

Since the Tax Benefit Transfer program began in 1999, PSE&G has been its largest purchaser of benefits in the state, purchasing approximately $70 million from technology and life science companies. To be eligible to sell under the Transfer Program, a company must be a new or expanding life sciences or technology business with a maximum of 225 employees and should have at least 75 percent of its workforce in New Jersey. A company is deemed ineligible if it had a profit within the two most recent years, if ongoing revenue exceeded 110 percent of expenses, or if it has a profitable parent business. Companies have until June 30 each year to apply.

Why deal directly with PSE&G?

PSE&G’s support of this innovative program is an example of its on-going corporate commitment to economic development in New Jersey. Access to start-up resources and support is critical and often determines where a company locates, whether it flourishes, and sometimes whether it even gets off the ground at all. PSE&G has witnessed the success of the Tax Benefit Transfer Program and it has seen how it has helped companies in the life sciences and technology sectors realize their full potential.

Although there are others that purchase benefits, dealing directly with PSE&G offers sellers significant advantages:

• PSE&G is the buyer, not a middleman or broker.
• There are no hidden or additional fees imposed on seller.
• PSE&G treats all sellers fairly and equally.
• PSE&G is committed to rapidly completing each step of the transfer process.
• The PSE&G Legal Department prepares and processes all documents needed for transfer.

Questions? Find out more by contacting Timothy R. Comerford, manager-PSE&G Area Development, at (973) 430-6458 or tcomerford@psegareadevelopment.com.