The Food Desert Relief Supermarket Tax Credit Program is currently accepting applications. Please click on the APPLY HERE button on the right to apply.

Open in new Tab FOOD DESERT RELIEF SUPERMARKET TAX CREDIT The Food Desert Relief Supermarket Tax Credit Program is currently accepting applications. Please click on the APPLY HERE button on the right to apply. The Food Desert Relief Supermarket Tax Credit Program addresses the food security needs of communities across New Jersey by providing up to $40 million per year in tax credits to develop and sustain new supermarkets and grocery stores in food deserts, for a total of $240 million over six years. The NJEDA has identified 50 Food Desert Communities (FDCs) across the state in coordination with the Departments of Community Affairs and Agriculture. Tax credits are available to up to two eligible supermarkets or grocery stores in each FDC. The Food Desert Relief Supermarket Tax Credit Program was established by the New Jersey Economic Recovery Act (ERA) of 2020 and signed into law by Governor Phil Murphy in January 2021. The Food Desert Relief Supermarket Tax Credit Program is comprised of two tax credits: the Financing Cap Tax Credit, applied for by a store’s developer, and the Initial Operating Costs Tax Credit, applied for by a store’s operator. For a single store to receive both credits, the applications must be reviewed and approved at the same time. Tax credits may be resold for a minimum of 85% of the transferred credit amount. ELIGIBILITY AWARD SIZE FISCAL AND RESIDENT PROTECTIONS FEES ELIGIBILITY To receive tax credits through the Food Desert Relief Supermarket Tax Credit Program, supermarkets or grocery stores must: Be the first or second newly constructed or rehabilitated s upermarket or grocery store in a designated Food Desert Community to be approved under this program. (Please consult the map of FDCs.) To qualify, the rehabilitation work done must affect at least 75% of the square footage of the supermarket or grocery store and must include repair or replacement of two or more major not limited to: (a) roof, (b) plumbing, (c) heating and cooling (including refrigeration), (d) electrical, (e) load bearing structural systems, or (f) weatherization ( solar windows, and doors). The cost of this repair or replacement, not including soft costs that are over 20% of the total cost, must be at least 60% of the fair market value of the supermarket or grocery store after the rehabilitation. Be a retail outlet with at least 16,000 square feet where at least 80% of square footage is occupied by food and related products. Devote at least 10% of retail space to fresh and/or frozen fruits and vegetables. Open the supermarket or grocery store for business to the public within 6 months of the receipt of a temporary certificate of occupancy or within three years of executing the incentive award agreement corresponding to the project (subject to possible extensions approved by the NJEDA). Commit to accept benefits from federal nutrition assistance programs, including SNAP and WIC. Demonstrate that the store would not be economically feasible without the tax credit award, but with the tax credit award, it would operate on a full-time basis for seven years after opening and be economically and commercially viable by the end of that period. Hold a public listening session in the Food Desert Community at least once a year.