FOOD DESERT RELIEF TAX CREDIT AUCTION

Open in new Tab FOOD DESERT RELIEF TAX CREDIT AUCTION The 2025 Food Desert Relief Tax Credit Auction is now closed. The Food Desert Relief Tax Credit Auction will raise funds for future grant, loan, and/or technical assistance programs to support food security. Funds raised will help increase access to nutritious food for the 1.5 million residents of New Jersey’s 50 designated Food Desert Communities, which span a diverse range of communities across all the state’s counties. 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%. 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% of the transferred credit amount. AUCTION PROCESS ELIGIBILITY AUCTION PROCESS The NJEDA will raise funds for future grant, loan, and/or technical assistance programs by auctioning tax credits. Auction bids will be evaluated by price, with tax credits awarded to fulfill the highest-priced bids until the allotment of tax credits has been fully allocated. Applicants may submit questions to [email protected] . Competitive Auction Process : Corporations and insurance companies bid on tax credits – Minimum tax credit request (face value): $500,000 – Minimum bid price per dollar of tax credits: $0.85 Deposit of 10% of the total bid price (up to $500,000) must be initiated by the end of the application period Once bids are submitted, they will be reviewed for eligibility If the auction is oversubscribed, bidders will have the opportunity to submit a best and final offer Tax credits will be awarded to fulfill the highest-priced bids until all available tax credits have been awarded Successful bidders will execute a Tax Credit Purchase Agreement and pay the remaining balance of their bid Proceeds from the auction will be used to fund future grant, loan, and/or technical assistance programs to support food security ELIGIBILITY To purchase tax credits during the FDR 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 Bidders do not need to be in the food industry, be located in a Food Desert Community, or make any ongoing commitments beyond the purchase transaction. Please be advised: New Jersey State law prohibits most cannabis license and certification holders from receiving or continuing to receive an economic incentive from the NJEDA. If the applicant, or any person who controls the applicant or owns or controls more than one percent of the stock of the applicant, has applied for or received a license or a certification from the New Jersey Cannabis Regulatory Commission (NJ-CRC), the applicant is ineligible for this program and should not proceed with an application. If an application is received from an applicant that meets this criteria, the application will be declined and the application fee will not be refunded. ADDITIONAL INFORMATION The Food Desert Relief Tax Credit Auction is part of the Food Desert Relief Act (FDRA). More information about NJEDA’s Food Desert Relief Act programs is available here . PROGRAM GUIDE Auction Process Eligibility BOARD MEMORANDA 2023 Auction 2024 Auction 2025 Auction Program One-Pager Sample Application Auction Process Application Checklist Purchase Agreement Template (2025) FAQS (Updated 8/5/2025) PAST AUCTION RESULTS 2023 Auction Results 2 024 Auction Results 2025 Auction Results INFORMATIONAL WEBINAR Informational Webinar (4/17/24) SLIDES l RECORDING Informational Webinar (7/31/25) SLIDES l RECORDING QUESTIONS