The New Jersey Economic Development Authority announced Monday that it intends to auction up to $20 million in corporate and insurance premiums tax credits through the Food Desert Relief Tax Credit Auction.
Applications for the auction will open Aug. 28 — and close Sept. 27. The proceeds of the auction will fund programs aimed to improve and increase access to healthy and affordable food throughout New Jersey’s 50 Food Desert Communities.
A sample application and details about the auction process can be found here.
Eligible bidders must be New Jersey Corporation Business Tax or Insurance Premiums Tax filers. Companies do not need to be in a food desert or in the food industry to buy tax credits through the auction. Companies can bid for tax credits at a discount of up to 15%.
The 2024 tax credit auction was approved by the EDA board in February, following the successful sale of $15 million in tax credits during the first tax credit auction in 2023. Proceeds from the 2023 and 2024 auctions will be used to fund programs that will advance the priorities established by the Food Desert Relief Act.
These future grants, loans and/or technical assistance initiatives will complement the Food Desert Relief Tax Credit Program, a tax credit program to support the development and operation of new supermarkets in FDCs, by supporting small and midsized food retailers and other entities involved in strengthening food security.
Questions may be submitted to FDRTCAuction@NJEDA.gov until Aug. 15. Answers will be posted no later than Aug. 22.
