By Joshua Burd
A program that could spur the construction of new supermarkets in New Jersey is taking shape after key steps by the state Economic Development Authority.
The agency last week said it will auction up to $10 million in corporate and insurance premiums tax credits, whose proceeds will fund programs aimed to improve and increase access to healthy and affordable food. The auction will take place starting Sept. 18, ultimately supporting what officials have identified as 50 food desert communities in the state, in connection with the Food Desert Relief Act signed into law in early 2021 by Gov. Phil Murphy.
The news follows the EDA board’s approval in April of rules for the Food Desert Relief Tax Credit Program, which allocates $240 million in subsidies over six years. Proceeds will help fund a series of grants, loans and technical assistance initiatives to support development and operation of new supermarkets in food deserts, in part by supporting small and midsized food retailers and other entities involved in strengthening food security.
The application for the auction will open at 10 a.m. on Sept. 18 and close at 5 p.m. on Oct. 18, the EDA said. Eligible bidders must be designated New Jersey Corporation Business Tax or Insurance Premiums Tax filers, while companies can bid for tax credits at a discount of up to 15 percent.
A sample application and details about the auction process are available on the authority’s website.
“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 Tim Sullivan, the authority’s CEO. “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.”
