The New Jersey Economic Development Authority (NJEDA) on Tuesday announced a significant expansion of its tax credit auctions, increasing the total value of available tax credits to $110 million due to what officials described as “greater than anticipated demand” from corporate taxpayers.
The increase will channel additional private funding into two critical state initiatives: the Food Desert Relief Tax Credit Auction and the New Jersey Innovation Evergreen Fund (NJIEF) Tax Credit Auction.
Fueling innovation and fighting food insecurity
The auctions allow New Jersey corporate taxpayers and insurance companies to purchase tax credits at a discount, which can then be used to reduce their 2025 state tax liability. The proceeds from these sales are directly invested back into economic development programs.
The Food Desert Relief Tax Credit Auction has been expanded from $10 million to $25 million in available tax credits. The funds raised will support future grants, loans, and technical assistance programs aimed at increasing access to healthy, affordable food in New Jersey’s 50 designated Food Desert Communities. These initiatives will complement the state’s existing supermarket tax credit program by also supporting smaller retailers and non-profit organizations involved in strengthening food security.
The New Jersey Innovation Evergreen Fund (NJIEF) Tax Credit Auction saw the largest increase, soaring from an initial $50 million to $85 million in tax credits. The NJIEF is designed to fuel the state’s innovation ecosystem, helping high-growth, innovative companies to “start, grow, and stay in state.” Funds raised from this auction will later be matched by professional venture capital firms and invested directly into promising, early-stage businesses across the Garden State.
Who can participate and key deadline
The auctions are open to any New Jersey corporate taxpayer or insurance company looking to reduce their 2025 state tax liability. Companies do not need to be in the food industry or the innovation sector to participate.
- Companies can bid for tax credits at a discount of up to 15 percent through the Food Desert Relief Tax Credit Auction.
- The discount is up to 25 percent for the New Jersey Innovation Evergreen Fund Tax Credit Auction.
The deadline for applications for both auctions is rapidly approaching: Oct. 3, at 5:00 p.m. Applicants may revise their submissions online or by contacting the NJEDA staff before the deadline.
This expansion underscores strong corporate interest in utilizing the tax credit mechanism to both manage tax liability and actively support New Jersey’s pressing economic development and social welfare goals.
