In a major move to bridge the housing gap for New Jersey families, the New Jersey Housing and Mortgage Finance Agency (NJHMFA) announced it will auction off up to $100 million in state tax credits this spring.
The auction, set to run from April 15 to May 15, offers New Jersey corporations a unique opportunity to reduce their tax liability while directly funding the development of affordable and workforce housing.
The State Tax Credit Subsidy (STCS) Program is designed to be a “win-win” for the private sector and the public interest. By selling these credits to eligible businesses, the NJHMFA generates immediate revenue to subsidize housing projects that might otherwise struggle to find funding.
“This program pairs tax relief for New Jersey businesses with core housing programs that exist to make the state a more affordable place for New Jersey families to live,” NJHMFA Executive Director Melanie Walter said. “It’s an unconventional, but mutually beneficial opportunity.”
Businesses can bid on credits to be applied against their Corporate Business Tax or Insurance Premium Tax. Key details include:
- Minimum Bid: 80 cents on the dollar.
- Application: Credits apply to the 2026 tax period.
- Flexibility: Unused credits feature a seven-year carry-forward provision.
- Availability: If the full $100 million is sold during this window, this will be the only auction held in 2026.
The revenue generated will be split evenly to address two distinct housing needs:
| Allocation | Target Demographic | Purpose |
| 50% – Affordable Housing | Families earning <60% of Area Median Income (AMI) | Assisting municipalities in meeting state-mandated affordable housing goals. |
| 50% – Workforce Housing | Families earning 80% to 120% of Area Median Income (AMI) | Creating homes for middle-income workers who are often priced out of the market. |
By pairing these funds with federal 4% Low-Income Housing Tax Credits (LIHTC), the NJHMFA expects to leverage billions of dollars in total housing investment across the state.
While businesses prepare their bids for the April 15 opening, housing developers must wait for the auction’s conclusion. Applications for the subsidies will open once the NJHMFA confirms the total funding available from the sales. Projects will be prioritized based on eligibility and the security of their other financing sources.
Interested businesses can find full bidding details and eligibility requirements at the official NJHMFA auction website.
