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