Upcoming New Jersey Tax Credit Auctions

The New Jersey Economic Development Authority (NJEDA) will be accepting applications from September 2 through October 3, 2025, for two upcoming tax credit auctions. These auctions represent an important opportunity for organizations to reduce their state tax liability while directly supporting high-impact public initiatives that strengthen communities and drive innovation across the state.

Through a competitive bidding process, companies may purchase Corporation Business Tax (CBT) credits and Insurance Premium Tax (IPT) credits offered under two signature NJEDA programs: the Food Desert Relief Tax Credit Program and the Innovation Evergreen Fund Tax Credit Program.

Key Takeaways

• Organizations can reduce their state tax liability while directly supporting high-impact public initiatives offered under these two signature NJEDA programs:
  • The Food Desert Relief Tax Credit Program
  • The Innovation Evergreen Fund Tax Credit Program
• The NJEDA will be accepting applications from September 2 through October 3, 2025, for two upcoming tax credit auctions.
• Eligible bidders include corporations subject to the CBT and IPT.

Who Can Apply

Eligible bidders include corporations subject to the CBT and IPT. Importantly, entities do not need to be located in a designated food desert community, be in the food industry, or meet other sector-specific criteria to participate in the Food Desert Relief auction.

Similarly, the Innovation Evergreen Fund program is open to organizations that are willing to purchase credits and make strategic commitments to New Jersey’s innovation ecosystem. This added dimension allows participants to play an active role in fostering entrepreneurship and supporting the growth of the state’s startup community.

Program Requirements

Both auctions are structured to be competitive and transparent, with specific thresholds for participation.

Food Desert Relief Tax Credit Auction

The Food Desert Relief Tax Credit Program is designed to raise funds for initiatives that improve food access in New Jersey communities designated as “food deserts.” More than 1.5 million residents live in these areas, making this program a critical component of the state’s food security strategy.

• Minimum bid size: $500,000 in credits.
• Minimum bid price: $0.85 per $1.00 of credit.
• Process: Credits are awarded to the highest bidders, subject to NJEDA oversight.
• Use of credits: Buyers apply credits directly against their CBT or IPT obligations.

Participation allows organizations not only to secure tax savings but also to contribute to efforts that expand healthy food access and support community well-being.

Innovation Evergreen Fund Tax Credit Auction

The Innovation Evergreen Fund Tax Credit Program takes a more multifaceted approach. It provides tax credit purchasers with both financial benefits and an opportunity to influence the growth of New Jersey’s innovation economy. Proceeds from the auction are invested by NJEDA, alongside private venture capital, into promising New Jersey startups.

• Minimum bid size: $500,000 in credits.
• Minimum bid price: $0.75 per $1.00 of credit.
• Additional requirements: Buyers must provide strategic commitments, which may include mentorship, networking, or other support for emerging companies. Purchasers also agree to serve on the Fund’s Advisory Board, giving them a direct role in shaping the state’s entrepreneurial landscape.

This program is particularly attractive to organizations that want to couple financial returns with reputational and strategic benefits, positioning themselves as partners in advancing New Jersey’s status as a hub for innovation.

Why These Auctions Matter

The NJEDA tax credit auctions create a unique win-win structure. Businesses secure below-par credits that reduce their tax burden, while the state channels proceeds into programs that address pressing social and economic priorities.

• The Food Desert Relief Tax Credit Program tackles food insecurity and strengthens community health.
• The Innovation Evergreen Fund Tax Credit Program drives investment into startups, creating jobs and stimulating long-term economic growth.

For companies, participation is not only a sound financial decision but also an opportunity to demonstrate corporate social responsibility and align with initiatives that resonate with employees, customers, and stakeholders.

Prepare Now

The application window runs from September 2 to October 3, 2025. Interested organizations should begin preparing now by assessing their New Jersey tax liability, evaluating the appropriate auction program, and coordinating with their tax and legal advisors to meet eligibility and compliance standards.

Getting Started

The EisnerAmper State and Local Tax team is highly skilled in evaluating and assisting clients with tax credits and incentives.

For detailed guidance on the application process, to discuss potential participation, and if you have any other questions, please contact:

• Gary Bingel
• Annette Fago