Corrections or additions?
This article was prepared for the
December 12, 2001 edition of U.S. 1 Newspaper. All rights
How Red Ink Can Become Good News
Here is a case where red ink means good news. This
year nearly 40 high tech Princeton companies raised cash by selling
their tax losses to other businesses. They successfully applied to
New Jersey’s Technology Business Tax Certificate Transfer Program,
which made $40 million available to 118 businesses.
Now in its third year, the Technology Business Tax Certificate
Program "has proven increasingly popular as an innovative means
to support the growth of high-technology businesses in New
says Caren S. Franzini, the New Jersey Economic Development
Authority’s executive director. The NJEDA administers the program
in conjunction with the state taxation division and the Commission
on Science and Technology.
"Spearheaded initially by the state’s biotech industry, this
has become an extremely effective financing tool for high-technology
companies needing to bring products to market and attract
she says. Approvals increased from 91 companies last year to 118
companies this year, including 73 from returning companies and 45
Could your company get transfer credits?
To be eligible, the company must have a new or expanding technology
or biotechnology and have no more than 225 employees. At least 75
percent of the employees must work in New Jersey, and the company
must do a major part of its business in New Jersey. Companies can
keep on applying every year until they reach a lifetime cap of $10
It’s as if a minimum wage earner who pays no income tax could sell
her deductions to someone in a high tax bracket. Technology companies
can take research and development tax credits to offset the nine
corporate tax, but young companies are so poor they aren’t paying
Under the law passed three years ago, the young and poor firm can
sell the tax credit to the more profitable firm. The bigger company
pays at least 75 percent of the value of the credit but gets to take
100 percent off its state tax. The small company can use the proceeds
mostly for fixed assets but also for salaries and working capital.
Another potential deduction that can be sold is the one for net
Among the major buyers for these credits are the Bank of New York,
PSE&G, Tiffany and Company, the New York Times Company, BNY Capital
Markets Inc., Comcast Cablevision of New Jersey, and Merrill Lynch
Professional Clearing Corp.
Applications for next year are due June 30. For a detailed guide to
EDA programs, "The Power to Help New Jersey Business Grow,"
call 609-292-1800 or write to NJEDA, Box 990, Trenton 08625, or go
to www.njeda.com. The site has a clickable map locating
EDA projects by county and a questionnaire that helps companies figure
out what programs might work in their business.
— Barbara Fox
Of the successful applications, nearly 40 are from Central Jersey:
Center, Pennington 08534. Founded 1998. Staff size: 4. 609-730-9900.
Home page: www.fullcomm.com
A digital security solutions provider — security hardware
and encryption for digital data.
08901. 732-296-8885. Home page: www.recommend-it.com
Internet advertising and marketing.
2000. Staff size: 8. 609-434-0340. Home page: www.dotphoto.com
Photo processing site with voice captions.
Business to business E-commerce.
08628. Founded 1994. Staff size: 5. 609-883-2266. Home page:
(PTAS) educational software developer and multimedia producer, with
multimedia SAT prep CD software.
Road, Lawrenceville 08648. Founded 1990. Staff size: 71. 609-912-9400.
Home page: www.pvimage.com
Development, manufacturing, and sales of hardware and software for
video processing for television advertising production.
Center of New Jersey, North Brunswick 08902. Founded 1992. Staff size:
25. 732-873-5322. Home page: www.datamarktech.com
Development and management of electronic customer loyalty and stored
value programs for retail, hospitality, telecommunications and
Princeton 08540. Founded 1987. Staff size: 18. 609-514-5000. Home
Distance learning software solutions.
Lawrenceville 08648. Founded 1993. Staff size: 10. 609-514-4100.
Home page: www.voxware.com
Provider of integrated voice-based solutions for distribution and
08648. Founded 1988. Staff size: 70. 609-936-9300. Home page:
Toxic and hazardous waste cleanup, bioremediation technology R&D,
vapor extraction systems, and on-site removal of organic contaminants
from soils and groundwater.
Windsor 08520. Founded 1984. Staff size: 150. 609-443-9300. Home page:
Diagnostic blood analysis equipment manufacturing. It just signed
a $30 million financing with Cerberus Capital Management LP.
A, Suite 1, Pennington 08534. Founded 1984. Staff size: 12.
Home page: www.oceanpowertech.com
Development, manufacture, and sales of equipment to generate
power using ocean waves and currents.
7599, Trenton 08628. Founded 1974. Staff size: 25. 609-883-9191.
Thermal sensing and control devices.
08512. Founded 1985. Staff size: 40. 609-395-8400. Home page:
Manufacturer of automated inspection systems — bar code reading
machines, automation systems, manufacturing systems controls. Winner
of private company of the year award for 2001 from New Jersey
Business Park, Pennington 08534. Founded 1984. Staff size: 20.
Home page: www.worldwater.com
Supplier of renewable energy and remote water supply for emerging
nations, designing, developing and marketing proprietary technology.
High Tech Manufacturing
1982. 609-860-2900. Home page: www.ariel.com
Engineering, development, and manufacturing of digital signal
Mercerville 08619. Founded 1991. Staff size: 30. 609-587-8250. Home
102, Princeton 08540. Founded 1985. 609-924-2680.
Anthracylines for chemotherapy.
New Brunswick 08901-3279; Founded 1990. Staff size: 12. 732-247-3300.
Home page: www.xechem.com
Research, development, and production of generic and proprietary
including ginseng and melatonin products, also Xetapharm for
1995. Staff size: 8. 609-419-1090.
Identification, development, and marketing of pharmaceutical products
primarily generated by research at the Mayo Clinic.
08648. Founded 1995. Staff size: 5. 609-919-1931. Home page:
Development and marketing of drugs and devices to advance women’s
health, also www.preven.com
08810. Staff size: 12. 732-274-2288. Home page: www.hymedix.com
Cosmetics, proprietary hydrogels, drug delivery systems, wound care
products, lubricious coatings, implants, sensors, etc.
Park Drive, Princeton Corporate Plaza, Suite 116, Monmouth Junction
08852. Founded 1997. Staff size: 25. 732-274-2882. Home page:
Drug development company, formerly Small Molecule Therapeutics,
of Munich-based firm.
08512. Founded 1988. Staff size: 25. 609-655-5300. Home page:
Research and development of immunotherapy products for treating
formerly OncoTherapeutics Inc., owned by Alberta-based firm.
5308, Princeton 08543-5308; Founded 1981. Staff size: 45.
Home page: www.cytogen.com
Marketing and development of products for targeted delivery of
and therapeutic substances directly to sites of disease.
Drive, Monmouth Junction 08852. Founded 1997. Staff size: 50.
Home page: www.delsyspharma.com
Privately-held developer of automated drug manufacturing and drug
delivery systems through electrostatic dry powder, with a total of
Box 688, Plainsboro 08536. Founded 1989. Staff size: 175.
Home page: www.integra-ls.com
Tissue and organ replacements, including artificial skin, cartilage,
and nerve conduits.
Research Way, Princeton Forrestal Center, Princeton 08540. Founded
1981. Staff size: 150. 609-452-7060. Home page: www.lipo.com
Development of advanced liposomal drugs for the treatment of cancer
and infectious diseases, also at 600 College Road and 4 Corporate
Drive at Exit 8A.
Princeton 08543. Founded 1995. Staff size: 200. 609-750-2200. Home
Production services and technologies of single nucleotide polymorphism
(SNP) scoring and genetic diversity analysis, with 300 employees
Suite 200, Wing A, Princeton 08540. Staff size: 8. 609-520-1911. Home
Products for sexual dysfunction and appendicitis detection, also
to facilitate ultrasound testing.
420, New Brunswick 08901. Founded 1998. Staff size: 4. 732-296-8400.
Home page: www.senesco.com
Agrobiotechnology — developing gene technology to extend the
Founded 1986. Staff size: 28. 609-490-1090. Home page:
Research and development of novel hydrogen chemistry with applications
of novel compounds and alternative power sources.
Cranbury 08512. Founded 2000. Staff size: 80. 609-925-8100. Home page:
High performance optical components including high-power pump lasers
and modules for advanced network applications.
Medical Product R&D
08543; Staff size: 15. 609-987-8400.
Research and development of high tech medical devices, including an
ultrasound-guided angioplasty catheter.
Other brand-new firms taking the tax credit are
in Belle Mead, Ibyl.com in Princeton, MainStreet IPO in
North Brunswick, and Luminide Pharmaceutical in Cranbury.
Corrections or additions?
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