NJEDA- Tax credit auction will support programs to alleviate food deserts and make nutritious foods more accessible & affordable
The New Jersey Economic Development Authority (NJEDA) will auction up to $10 million in corporate and insurance premiums tax credits through the Food Desert Relief Tax Credit Auction beginning on September 18. 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). The tax credit auction was approved by the NJEDA Board in April.
Eligible bidders must be New Jersey Corporation Business Tax or Insurance Premiums Tax filers. Companies can bid for tax credits at a discount of up to 15 percent. The application for the auction will open on September 18 at 10:00 a.m. and close on October 18 at 5:00 p.m. A sample application and details about the auction process can be found here. Questions may be submitted to FDRTCAuction@NJEDA.gov until Tuesday, September 5 at 5:00 pm. Answers will be posted no later than Monday, September 11 at 5:00 pm.
“The NJEDA is committed to fighting food insecurity and this tax credit auction will help raise funds for programs that will help ensure fresh, healthy, and affordable food is accessible and available in every community across the state,” said NJEDA Chief Executive Officer Tim Sullivan. “Every New Jerseyan deserves access to high-quality food options, no matter their zip code. Governor Phil Murphy and the Legislature have long been committed to combatting food insecurity, while uplifting families and neighborhoods.”
In April, the Board approved proposed rules for the $240 million Food Desert Relief Tax Credit Program, as well as the auction of up to $50 million of the $240 million in tax credits in 2023. Proceeds from the auction will be used to fund programs that will advance the priorities established by the Food Desert Relief Act (FDRA). These future grants, loans, and technical assistance initiatives will complement the Food Desert Relief Tax Credit Program, a tax credit program to support development and operation of new supermarkets in FDCs, by supporting small and mid-sized food retailers and other entities involved in strengthening food security.
The FDRA was established under the New Jersey Economic Recovery Act (ERA) of 2020. The programs created under the FDRA are part of the NJEDA’s broader portfolio of work focused on food security, including the Food Security Planning Grant, Sustain & Serve NJ, and the Food Retail Innovation in Delivery Grant (FRIDG). Learn more here.
Article Courtesy of the NJEDA