To avoid double taxation, companies operating in states and paying state income taxes can reduce their federal tax obligation by the amount paid to thestate (just as individuals can reduce their federal income tax obligation by subtracting their state income tax payment from their income).
Phil Mickelson at 2007 Barclays Singapore OpenFederal tax law changes beginning in 2013 could further aggravate the situation because of rules applicable to high income taxpayers that could reduce itemized deductions (including the federal state income tax deduction) by as much as 80%, making the net cost of state income taxes more expensive.
And New Jersey allows money-losing biotechs--of which there are many, since most biotech firms still lose money--to sell their losses to profit-making companies in thestate that wish to reduce their statetax bills.