Auction Application Welcome

The New Jersey Innovation Evergreen Fund Program forms a platform to facilitate public and private sector engagement that will raise and invest capital in qualified New Jersey-based companies and promote strategic collaboration in the state’s innovation economy. Funding and strategic support for the program will come from the sale of state corporate business tax credits in an annual competitive auction.

The state of New Jersey will sell up to $300 million in aggregate corporate tax credits to eligible corporations throughout the life of the program. Corporations may purchase credits for a minimum of 75 percent of face value. 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. Completed applications, including a refundable deposit, must be received by October 7, 2022. In addition to their bid, purchasers must fulfill a self-defined strategic commitment to support the state’s innovation economy and nominate a company representative to serve on the New Jersey Innovation Evergreen Advisory Board.

If the amount of tax credits requested for purchase exceeds the total amount available, the Authority may pro rate the amount of tax credits awarded based on applicant scores. Successful tax credit purchasers will not receive less than $500,000 of program tax credits. 1

Due at the time of application, each applicant must wire a refundable deposit of 10% of the purchase offer, up to $500,000. The deposit will be applied to the final amount paid. If the approved applicant does not close the transaction, the deposit will be refunded, but the applicant may be disallowed from participating in the auction the following year. Applications will not be considered complete and may not be scored until deposits are received by the NJEDA. All deposits are due by the close of the application period. Please ensure the wire is sent and received on a timely basis to allow time for receipt.

Eligibility Information:
To be awarded a tax credit under the New Jersey Innovation Evergreen Fund, a potential purchaser must meet various criteria contained in the Program Regulations: Main Document, and explained in the Program Board Memorandum and Program Memo: Attachment B , including but not limited to:

  • The amount of tax credits to purchase shall not be less than $500,000;
  • The percentage amount of the face value of the tax credits the bidder proposes paying shall not be less than 75 percent of the face value of credits;
  • Each component of the strategic commitment, including the cost to the proposed purchaser of each such component, must be described in detail. The strategic commitment is open-ended. Examples may include mentorship hours, internship offerings, sales and distribution pipeline access;
  • Commit to serve on the New Jersey Innovation Evergreen Advisory Board for one-year from the time of approval;
  • Provide a refundable deposit for 10% of the tax credit purchase offer, not to exceed $500,000, at the time of application (which will be applied to the final purchase amount paid);
  • Purchasers must agree to publicize their involvement with the Evergreen Fund.


In the event of proration, bidders may be declined if it results in an award of less than $500,000 tax credits.

NOTE: If needed, you can download a PDF of your partially-completed application for review by clicking the icon to the right of your application ID below.

 

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