The Business Tax Reform Act, P.L.2002, c. 40, (sometimes referred to as the "BTRA") was approved July 2, 2002 and became effective for privilege periods beginning on and after January 1, 2002. The BTRA suspended the application of net operating loss (NOL) deductions for tax years 2002 and 2003. The usual seven year NOL carryforward (15 years for certain high-technology corporations) is extended for two years.
Despite the NOL suspension, the sale and purchase of tax benefits by high technology companies under the Tax Benefit Transfer program is not affected. Both the Corporation Business Tax Act and its corresponding regulations (N.J.A.C. 18:7-5.17) specifically state that the NOL suspension shall not restrict the surrender or acquisition of corporation business tax benefit certificates pursuant to section 1 of P.L.1997, c.334 (C.34:1B-7.42a) and shall not restrict the application of corporation business tax benefit certificates pursuant to section 2 of P.L.1997, c.334 (C.54:10A-4.2).Date: March 18, 2003