NJEDA to Open Applications for $20M Food Desert Relief Tax Credit Auction

Tax credit auction will support programs to alleviate food deserts and make nutritious foods more accessible & affordable

TRENTON, N.J. (July 29, 2024) - The New Jersey Economic Development Authority (NJEDA) will auction up to $20 million in corporate and insurance premiums tax credits through the Food Desert Relief Tax Credit Auction. Applications for the auction will open on August 28, 2024. The proceeds of the auction will fund programs aimed to improve and increase access to healthy and affordable food throughout New Jersey's 50 Food Desert Communities (FDCs).

WHAT: The 2024 tax credit auction was approved by the NJEDA Board in February, following the successful sale of $15 million in tax credits during the first tax credit auction in 2023.Proceeds from the 2023 and 2024 auctions will be used to fund programs that will advance the priorities established by the Food Desert Relief Act.

These future grants, loans, and/or technical assistance initiatives will complement the Food Desert Relief Tax Credit Program, a tax credit program to support the development and operation of new supermarkets in FDCs, by supporting small and mid-sized food retailers and other entities involved in strengthening food security.

WHO: Eligible bidders must be New Jersey Corporation Business Tax or Insurance Premiums Tax filers. Companies do not need to be in a food desert or in the food industry to buy tax credits through the auction. Companies can bid for tax credits at a discount of up to 15 percent.

WHEN: Applications will open on August 28, 2024 at 10:00 a.m. and close on September 27, 2024 at 5:00 p.m.

A sample application and details about the auction process can be found here. Questions may be submitted to [email protected] until August 15, 2024 at 5:00 p.m. Answers will be posted no later than August 22, 2024 at 5:00 p.m.

About the NJEDA

The New Jersey Economic Development Authority (NJEDA) serves as the State's principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey's long-term economic competitiveness.

To learn more about NJEDA resources for businesses, call NJEDA Customer Care at 844-965-1125 or visit https://www.njeda.gov and follow @NewJerseyEDA onFacebook, Twitter, Instagram, and LinkedIn.

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