NJEDA to Auction Up to $25 Million in Discounted Tax Credits to Fund Food Access Programs
The New Jersey Economic Development Authority is set to auction up to $25M in state tax credits to corporations and insurance companies. The money raised from the auction will be used to support future programs aimed at fighting hunger and improving access to healthy food. Past auction proceeds have supported food pantries, programs that help families apply for SNAP and WIC, community farms and mobile markets.
Applications for the 2026 Food Desert Relief Tax Credit Auction will open 09/08 and close on 10/09, with a virtual info session on 08/10 at 1 p.m.
Companies can bid on the tax credits if they pay New Jersey corporation business taxes or insurance premium taxes with a minimum request of $500K in credits and a minimum offer of 85 cents on the dollar. For example, a company could pay $850,000 for $1 million in tax credits and apply the full $1 million credit against its eligible 2026 New Jersey tax liability, netting a discount of $150K.
Credits go to the highest bidders until all available credits have been allocated. If the auction is oversubscribed, eligible bidders may be asked to submit their best and final offers.
Companies don’t have to operate in the food industry, be located in a designated food desert or make any continuing commitment to support food programs- they just need to buy the credits which can also be resold at 85% or more of the credit amount.
While the direct financial benefit goes to the companies buying the discounted tax credits, the public benefit will depend on how NJEDA uses the money collected through the auction.
NJEDA hasn’t yet identified the specific programs that will receive the proceeds from this auction or said when the money will reach local organizations.
If all $25 million in credits were sold at the minimum price of 85 cents per dollar, the auction would raise $21.25 million with higher bids leading to more funding.
In 2023, NJEDA awarded $15 million in tax credits and received $13.075 million from four companies. Those companies included Verizon Communications, New Jersey Manufacturers Insurance Company, United States Fire Insurance Company and Rockefeller Group Development Corporation.
In 2024, NJEDA awarded $20 million in credits and collected ~ $18M. The buyers included Vitol, Metropolitan Life, Aetna, OceanFirst Financial, NJM and Rockefeller Group.
In 2025, companies received $25M in tax credits and paid ~ $23M. The credits went to Aetna, Pruco Life Insurance Company, Marsh & McLennan, Atlas Copco, Ocean Casino Resort, NJM and OceanFirst Financial.
Combined, NJEDA awarded $60 million in tax credits through the three auctions and collected ~$54M.
The difference, ~ $6M, represents the discounts received by the participating companies.
Money raised through the 2023 and 2024 auctions was used to create the $30 million Food Equity and Economic Development in New Jersey program, commonly known as FEED NJ.
NJEDA ultimately awarded grants to 73 organizations for projects serving communities across New Jersey.
Those projects include expanded food pantries, refrigerated trucks, mobile markets, food-delivery programs, community farms, hydroponic growing equipment, nutrition education and assistance helping residents apply for SNAP and WIC benefits.
NJEDA reports that the grants have supported projects serving all 50 of the state’s designated Food Desert Communities, with an average grant of approximately $410K.
The state has designated 50 Food Desert Communities across all 21 counties. More than 1.5 million New Jersey residents live within those areas, according to NJEDA.
The auction is part of the Food Desert Relief Act, which was included in the New Jersey Economic Recovery Act signed into law in January 2021 and authorized up to $240M in tax credits over six years, generally allocating up to $40 million annually for programs intended to improve access to nutritious food.
Some of those credits can be awarded directly to developers and operators of supermarkets or grocery stores in designated food deserts. NJEDA can also auction a portion of the credits and use the cash generated to pay for grants, loans and technical assistance.
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