August 11, 2022

New Jersey Launches Tax Credit Auction for Innovation Evergreen Fund

By Barry Halpern, Partner, Tax & Business Services

New Jersey Launches Tax Credit Auction for Innovation Evergreen Fund Tax Credits & Incentives

The New Jersey Economic Development Authority (NJEDA) recently announced the launch of the first annual Corporate Tax Credit Auction for its new program, the New Jersey Innovation Evergreen Fund (NJIEF).

Established by New Jersey Economic Recovery Act of 2020, the NJIEF may sell up to $300 million of corporate tax credits through annual auctions of up to $60 million each, over the course of the seven-year program. Funds raised through the auctions will be invested to foster innovation and create the conditions necessary for entrepreneurs to succeed.

The bidding application process will be open through October 7, 2022. In addition to making bids, businesses applying for corporate tax credits will be required to make certain “strategic commitments” that support the state’s “innovation ecosystem.”


To purchase tax credits through the NJIEF auction, a company must:

  • Request at least $500,000 in tax credits.
  • Bid at least 75 percent of the requested dollar amount of tax credits and provide a refundable deposit.
  • Commit to serve on an advisory board for one year from the time of approval.
  • Specify and quantify a strategic commitment to support aspects of the New Jersey innovation ecosystem:
    • Including but not limited to mentorship hours, internship offerings, networking, and collaboration opportunities to qualified businesses.
  • Be registered to conduct business in New Jersey and maintain a valid tax clearance certificate.


  • Corporations bid on tax credits and put forth a strategic commitment during open application process:
    • For 2022, a pilot amount of $30 million in tax credits will be available for purchase (amount could be increased based on demand).
    • Tax credits are valid for the application year and can be carried forward for seven years.
    • Remit a refundable deposit of 10% (up to $500,000) of the tax credit purchase offer.
  • Awards will be allocated on availability based on value of the combined bid and strategic commitments.

For additional information regarding the NJIEF opportunity and its potential impact on your business, contact Barry Halpern or your Marcum State and Local Credits and Incentives professional.