New Jersey Prepares for Next State Tax Credit Subsidy Auction

The New Jersey Housing and Mortgage Finance Agency (NJHMFA) is preparing for the next round of its State Tax Credit Subsidy (STCS) Program auction. The 30‑day bidding window is expected to run from mid‑April through mid‑May 2026. While the exact dates have not yet been finalized, the Agency has signaled its intent to move forward this spring after a quiet debut last fall. 

Key Points of the Tax Credit Auction

Bid Submission Requirements 

• Minimum bid at least $250,000 in tax credit face value
• Price per credit cannot be below $0.80
• Bids must be submitted exclusively through the online auction portal — no email or mailed submissions are accepted
  Within the 30day window, bidders must:
  • Complete the bid online
  • Wire a 10% refundable deposit
  • Wire a nonrefundable $500 bid fee
  • Upload all required certifications and documentation, including a New Jersey Tax Clearance Certificate 

Eligibility

Bidders must obtain and submit a valid New Jersey Tax Clearance Certificate not only for themselves but also for any related entities (parents, subsidiaries, affiliates) that may benefit from the credit 
Mandatory certification of noninvolvement in prohibited activities in Russia, Belarus, or Iran 
Any state or federal debarment, suspension, or sanctions listing disqualifies the bidder  

Competitive Ranking System 

• Bids are ranked on:
  1. Price per credit
  2. Total bid amount
  3. Submission timestamp
• Higherpriced and larger bids are prioritized 

Possibility of Partial Awards 

• If a bidder requests more credits than remain available in the annual cap, the Agency may offer a partial award 

Public Disclosure 

• The Agency will publish the names of winning bidders, award amounts, and purchase percentages 

Carryforward/Transferability 

• Credits may be carried forward seven years following purchase 
• Although credits are transferable, transfers require an additional approval process by both NJHMFA and the Division of Taxation 
• Approved transfers are also posted publicly 

Next Steps  

As NJHMFA prepares to open the next bidding window, now is the time to review requirements, confirm eligibility, and organize documentation. If you need support evaluating a bid strategy or preparing, contact our team today to get started.