NJEDA Opens Corporate Tax Credit Auction

 – August 9, 2022
NJEDA Opens Corporate Tax Credit Auction

The New Jersey Economic Development Authority (NJEDA) has launched the next phase in the creation of the New Jersey Innovation Evergreen Fund (NJIEF) by opening the first of up to five annual New Jersey Corporate Tax Credit Auctions to fuel the fund. The NJIEF is a groundbreaking new tool to increase access to strategic resources and venture capital in New Jersey. Under the NJIEF, the State will become an equity investor in startups deploying up to $600 million into companies alongside professional venture capital groups. This strategic investment will not only support New Jersey’s entrepreneurs, but will also ensure that more companies start, grow, and stay in state.

For the 2022 auction year, a pilot amount of $30 million of tax credits will be available for purchase through the New Jersey Corporate Tax Credit Auction. Based on demand, the Authority may increase the amount of tax credits available in the current year. The funds raised from the auction will later be matched by professional venture capital firms and invested into high-growth, early-stage businesses across the Garden State.

Established by the New Jersey Economic Recovery Act of 2020, the NJIEF is an innovative tool designed to incentivize investment in emerging New Jersey companies while creating mentoring, networking, and educational opportunities to help position these companies for success.

Corporations seeking to purchase the tax credits must commit to supporting the state’s innovation economy through activities such as mentorship, internships, sales and distribution pipeline access, and availability to serve on the NJIEF Advisory Board for one year. Completed applications, including a refundable deposit, must be received by Oct. 7, 2022.