People have until Friday, Oct. 9, to apply for the New Jersey Economic Development Authority (NJEDA) Food Desert Relief Tax Credit Auction.
Because demand exceeded expectations, the NJEDA increased the tax credits to $30 million, from the original $25 million. Bidders can purchase the credits through the auction and offset up to 15% of their New Jersey tax liability, according to a press release.
The Food Desert Relief Tax Credit Auction will raise funds for future grant, loan, and/or technical assistance programs to fight hunger and strengthen food security. Funds raised will help increase access to nutritious food in communities across the state and support the over 1 million New Jersey residents currently facing hunger.
Both Corporation Business Tax and Insurance Premiums Tax credits will be auctioned to New Jersey taxpayers. Bidders can offset their NJ tax liability by up to 15%. Tax credits will be awarded to fulfill the highest-priced bids until the allotment is fully allocated. Tax credits may be resold for a minimum of 85% of the transferred credit amount.
Reducing Hunger, Expanding Food Access
Proceeds will fund programs that strengthen food access and reduce hunger in communities across the state where these challenges are most acute. These future grant, loan, and/or technical assistance opportunities will also advance the priorities established by the Food Desert Relief Act.
Funds will also complement the NJEDA’s toolkit of existing food security programs, including FEED NJ, funded by proceeds from past tax credit auctions. About $30 million will be invested to “catalyze innovative, sustainable, and scalable food access initiatives in underserved areas,” per the statement.
Who is Eligible
New Jersey Corporate Taxpayers or Insurance Companies that want to reduce their New Jersey 2026 tax liability. Companies do not need to be located in a food desert, be in the food industry, or make any ongoing commitments beyond the purchase transaction to buy tax credits through the auction.
Applications close on Friday, Oct. 9 at 5 p.m. Applications and additional information are available here. Applicants may submit questions to FDRTCAuction@NJEDA.gov.
The Food Desert Relief Tax Credit Auction is part of the Food Desert Relief Act (FDRA). FEED NJ has awarded $30 million in grants to 73 organizations undertaking innovative projects that strengthen food access and reduce hunger in the communities where these challenges are the most acute. To learn more about the projects funded by FEED NJ, click here.
To learn more about NJEDA resources for businesses, call NJEDA Customer Care at 844-965-1125 or visit https://www.njeda.gov.
Competitive Auction Process
- Corporations and insurance companies bid on tax credits
– Minimum tax credit request (face value): $500,000
– Minimum bid price per dollar of tax credits: $0.85 - Deposit of 10% of the total bid price (up to $500,000) must be initiated by the end of the application period
- Once bids are submitted, they will be reviewed for eligibility
- If the auction is oversubscribed, bidders will have the opportunity to submit a best and final offer
- Tax credits will be awarded to fulfill the highest-priced bids until all available tax credits have been awarded
- Successful bidders will execute a Tax Credit Purchase Agreement and pay the remaining balance of their bid
- Proceeds from the auction will be used to fund future grant, loan, and/or technical assistance programs to support food security