The New Jersey Economic Development Authority has scheduled a June 15 online information session for corporations and insurance companies that want to learn more about the upcoming auction of up to $50 million in state tax credits to help fund Food Desert Relief programs.
Eligible bidders during the July auction may be able to purchase credits for the New Jersey Corporation Business Tax or state Insurance Premiums Tax at up to a 15% discount. The NJEDA will auction $50 million of the $120 million in tax credits available for the 2023 calendar year.
Proceeds from the auction will support programs focused on the 50 designated “food desert communities” in all 21 counties and could include grants and loans to food retailers to establish and retain locations. Funding can be used by food retailers for equipment costs associated with providing nutritious food, technical assistance on best practices for increasing access to nutritious foods, and other efforts to alleviate food insecurity.
The auction is expected to take place over a 30-day period in July. A minimum credit request of $500,000, with a minimum offer price at 85% of face value, is required. A deposit of 10% is required at application and will be applied toward the purchase if a corporation’s bid is accepted. Deposits for rejected bids will be refunded.
Corporations and insurance companies interested in bidding on tax credits at the auction, are urged to attend an online NJEDA webinar at 11 a.m., June 15. A Q&A session will be held at the conclusion of the presentation. To register, go here. Questions may be emailed to FDRTCAuction@NJEDA.gov.