Food Desert Relief Tax Credit Auction

Food Desert Relief Tax Credit Auction is sponsored by New Jersey Economic Development Authority (NJEDA). The NJEDA will auction up to $25 million in corporation business tax and insurance premiums tax credits.

Food Desert Relief Tax Credit Auction - NJEDA 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 1,000,000 New Jersey residents currently facing hunger.

Both Corporation Business Tax and Insurance Premiums Tax credits will be auctioned to New Jersey taxpayers. Bidders have the opportunity to offset their NJ tax liability by up to 15%. Tax credits will be awarded to the 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. The NJEDA will raise funds for future grant, loan, and/or technical assistance programs by auctioning tax credits. Auction bids will be evaluated by price, with tax credits awarded to fulfill the highest-priced bids until the allotment of tax credits has been fully allocated.

Applicants may submit questions to FDRTCAuction@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 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 To purchase tax credits during the FDR auction, a company must: Request at least $500,000 in tax credits Bid at least 85 percent of the requested dollar amount of tax credits Be a New Jersey Corporation Business Tax or Insurance Premiums Tax filer Be registered to do business in NJ, maintain a valid tax clearance certificate, and be in good standing with the New Jersey Departments of Labor and Environmental Protection Bidders do not need to be in the food industry, be located in a Food Desert Community, or make any ongoing commitments beyond the purchase transaction.

Please be advised: New Jersey State law prohibits most cannabis license and certification holders from receiving or continuing to receive an economic incentive from the NJEDA.

If the applicant, or any person who controls the applicant or owns or controls more than one percent of the stock of the applicant, has applied for or received a license or a certification from the New Jersey Cannabis Regulatory Commission (NJ-CRC), the applicant is ineligible for this program and should not proceed with an application.

If an application is received from an applicant that meets this criteria, the application will be declined and the application fee will not be refunded. The Food Desert Relief Tax Credit Auction is part of the Food Desert Relief Act (FDRA).

Proceeds from the Food Desert Relief Tax Credit Auction support NJEDA programs like FEED NJ , which 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 .

Program One-Pager Sample Application Auction Process Application Checklist Purchase Agreement Template (2025) FAQS An informational webinar will be held on Monday, August 10, 2026 at 1 p. m. To register, click here .

Please contact FDRTCAuction@NJEDA. gov with questions or to schedule a call with program staff. Any answers provided will also be shared publicly so that all bidders have the same information.

Food Desert Relief Tax Credit Auction