The New Jersey Economic Development Authority (“NJ EDA”) has announced two concurrent tax credit auctions, running from September 2, 2025, through October 3, 2025.
These auctions will offer tax credits under both the NJ Innovation Evergreen Fund and the Food Desert Relief Program, providing eligible taxpayers the opportunity to bid on credits that can be applied against New Jersey Corporation Business Tax (“CBT”) and Insurance Premium Tax (“IPT”). Each program offers a minimum of $500,000 in available tax credits.
Below is a high-level overview of each program:
NJ Innovation Evergreen Fund
Purpose of Proceeds: Funds raised through this auction will be used to invest in innovative, high-growth businesses based in New Jersey.
Bid Requirements
- Minimum bid price: $0.75 per $1 of tax credit
- Bidders must submit a strategic commitment to New Jersey’s innovation ecosystem.
- Examples include financial support for innovation organizations, hiring commitments, and mentorship initiatives.
- Strategic proposals are scored based on their in-kind contributions, which influence the final bid ranking.
- If the auction is oversubscribed, credits above the $500,000 minimum will be allocated based on bid scores.
Tax Credit Details
- Carryforward: Up to 7 years
- Usage Limitation: May offset up to 25% of NJ tax liability
- Transferability: Credits may be resold for at least 85% of the transferred amount
Food Desert Relief Program
Purpose of Proceeds: Supports grants, loans, and technical assistance for designated Food Desert Communities in New Jersey, as defined by the Food Desert Relief Act.
Bid Requirements
Minimum bid price: $0.85 per $1 of tax credit
No additional compliance requirements beyond the initial purchase
Tax Credit Details
- Carryforward: Up to 7 years
- Usage Limitation: May offset up to 15% of NJ tax liability
- Transferability: Credits may be resold for at least 85% of the transferred amount
Additional Information
To learn more about these programs and their offerings, please take a moment to explore the links provided below:
Contact Us
For more information on this topic, please contact a member of Withum’s Life Sciences Services Team.
