The New Jersey Economic Development Authority (NJEDA) Board approved proposed rules for the $240 million Food Desert Relief Tax Credit Program, which will help address food access challenges by attracting and retaining new supermarkets in the 50 Food Desert Communities (FDCs) designated by the NJEDA last year.

The Food Desert Relief Tax Credit program establishes two types of tax credits that encourage resiliency of supermarkets for a lasting impact on communities. Both are available to new and rehabilitated supermarkets within the areas designated as FDCs.

The Financing Gap Tax Credit will provide up to 40 percent of project’s costs for development of the first new supermarket located in any one FDC, and up to 20 percent for the second new supermarket.

The Initial Operating Cost Tax Credit will be available to supermarket operators to help fill a shortfall in initial operating income.

To be eligible, stores must be located within the boundaries of NJEDA-designated FDCs. Applicants must demonstrate that the project would not be feasible without the tax credit award and demonstrate that the supermarket will remain open for business for at least seven years.

A complete overview of the rules and more information on the Food Desert Relief Tax Credit program can be found here.