FOOD DESERT RELIEF TAX CREDIT AUCTION
An informational webinar on the 2024 Food Desert Relief Tax Credit Auction will be held on Wednesday, April 17 at 11:00 a.m. Slides and a recording will be posted on this page after the event. Register here.
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
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 FDRTCAuction@NJEDA.gov.
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
PROGRAM GUIDE
(Updated 10/12/23)
QUESTIONS
Questions may be submitted to FDRTCAuction@NJEDA.gov. Any answers provided will also be shared publicly so that all bidders have the same information.