The New Jersey Economic Development Authority (NJEDA) will auction up to $10 million in corporate and insurance premiums tax credits through the Food Desert Relief Tax Credit Auction beginning on September 18. 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 (FDCs).

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 percent. 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 percent of the transferred credit amount.

To purchase tax credits during the Food Desert Relief Tax Credit 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

The application for the auction will open on September 18 at 10:00 a.m. and close on October 18 at 5:00 p.m. A sample application and details about the auction process can be found here. Questions may be submitted to FDRTCAuction@NJEDA.gov until Tuesday, September 5 at 5:00 pm. Answers will be posted no later than Monday, September 11 at 5:00 pm.

Please reach out to Hilary Chebra, Manager, Government Affairs at hchebra@chambersnj.com if you have any questions.