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NEW JERSEY INNOVATION EVERGREEN FUND

CORPORATE TAX CREDIT AUCTION


The auction opened August 1, 2022. Completed applications, including a refundable deposit, must be received by October 7, 2022.

The New Jersey Innovation Evergreen Fund (NJIEF) is a partnership with the private sector that will raise and invest funds in New Jersey-based companies to address New Jersey’s shortfalls in venture capital funding and create the conditions necessary for entrepreneurs to succeed.

The NJEDA will raise funds for the NJIEF by offering up to $300 million of tax credits over seven years through annual auctions. Corporations have the opportunity to offset their CBT liability in the state by up to 25%. For the 2022 auction year, a pilot amount of $30,000,000 of tax credits will be available for purchase (based on demand, the Authority may increase the amount of tax credits available for purchase). The auction will open August 1, 2022.  Auction bids will be evaluated according to price and strategic commitments the bidding company makes to support NJIEF’s portfolio companies and the state’s broader innovation ecosystem.

The NJEDA will raise funds for the NJIEF by offering up to $300 million of tax credits over seven years through annual auctions. For the 2022 auction year, a pilot amount of $30,000,000 of tax credits will be available for purchase (based on demand, the Authority may increase the amount of tax credits available for purchase). The auction opened on August 1, 2022.  Auction bids will be evaluated according to price to purchase the tax credits and strategic commitments the bidding company makes to support NJIEF’s portfolio companies and the state’s broader innovation ecosystem.

Applicants may submit questions to NJIEF@NJEDA.com.

Competitive Auction Process

  1. Corporations bid on tax credits and put forth a strategic investment into the state
    • Minimum bid: $500,000
    • Auction Floor: $0.75
  2. The 2022 auction application opened on August 1st and will close on October 7th, 2022.
    • All application refundable deposits are due by the date the application closes.
    • At its discretion, the NJEDA may elect to extend the application period. Applicants may apply here.
  1. Once bids are submitted, they will be reviewed
  2. Following review, you will have the chance to modify and submit your best and final offer
  3. Awards will be allocated on availability based on value of the combined bid.

ELIGIBILITY

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

  • Request at least $500,00 in tax credits. 
  • Bid at least 75 percent of the requested dollar amount of tax credits. 
  • Agree to provide mentorship, networking, and collaboration opportunities to qualified businesses that receive funding under the program, at minimum, in addition to other support of the State’s innovation ecosystem in its bid. 
  • Be registered to do business in NJ and maintain a valid tax clearance certificate

STRATEGIC COMMITMENTS

The tax credit auction is built to both raise capital and increase engagement into New Jersey’s innovation ecosystem, notably, with well-established corporations operating in New Jersey. To help foster engagement and collaboration, all applicants are required to make a strategic commitment to support New Jersey’s innovation ecosystem.

These Strategic Commitments are programs or initiatives put forth by the auction bidders, oriented to categorically support aspects of the New Jersey innovation ecosystem such as investing into people (develop talent), developing the ecosystem (commit to hold start-up events and programs), providing investment (provide resources, access to customer channels or distribution networks, monetary support) and marketing (promote Evergreen and provides public relations support around the support of innovation in New Jersey). Other examples appear in the corporate tax credit bidder pamphlet available here.

Ultimately, the strategic commitment is an open-ended proposition put forward by the bidder as a unique contribution. These strategic commitments will be evaluated in conjunction with the purchase offer to determine each corporate tax credit bidder score.

  • Program strategic commitments are open ended and may take many shapes. All commitments must support the State’s innovation ecosystem.
  • Auction purchasers must submit an annual report to the NJEDA detailing progress of strategic commitment completion.
  • Successful auction purchasers that must change a strategic commitment due to unforeseen circumstance should contact the NJEDA at NJIEF@NJEDA.COM

The full statutory text of the program can be found in sections 20-34 of the Economic Recovery Act of 2020. 

Specially adopted and concurrently proposed Evergreen regulations

Proposed New Rules

New Jersey Innovation Evergreen Fund- Board Memo