- NJEDA is offering new and expanded tax credit programs for corporations in 2025.
- Tax credit auctions allow pre-payment of NJ tax liabilities at a discount.
- The Next NJ Manufacturing Program incentivizes manufacturing investment and job creation.
Background
The New Jersey Economic Development Authority (NJEDA) has launched several initiatives in 2025 to help corporations reduce their New Jersey tax liabilities and support economic growth. These programs include tax credit auctions and a major new manufacturing incentive.
Forvis Mazars Insight: Corporations can strategically leverage these programs to reduce tax costs, support community development, and align with broader business objectives.
New Jersey Tax Credit Auctions
The Food Desert Relief and the NJ Innovation Evergreen Fund (NJIEF) tax credit auctions open from September 2 through October 3, 2025. These auctions allow corporations to pre-pay New Jersey Corporation Business Tax (“CBT”) or Insurance Premium Tax (“IPT”) liabilities at a discount, with credits carried forward up to seven years. The minimum tax credit request is $500,000 and participation is open to CBT and IPT filers in good standing.
The Food Desert Relief Auction funds grants and assistance in designated Food Desert Communities, with ten million dollars in credits available. The minimum bid is 85% of face value ($0.85 per $1 of credit), allowing a 15% maximum discount. Past auctions have yielded higher results, 90% in 2024 and 87% in 2023. There are no commitments beyond the purchase of the credits.
The NJ Innovation Evergreen Fund Auction funds investment in high-growth New Jersey companies, with fifty million dollars in credits available. The minimum bid is 75% of face value ($0.75 per $1), allowing a 25% maximum discount. Bids are scored on both price and commitment; the 2022 clearing price averaged 82%. There are additional obligations for purchasers, including a strategic commitment to the innovation ecosystem and Advisory Board participation.
Forvis Mazars Insight: Auction participation can yield significant tax savings, but understanding bid strategies and program obligations is critical for maximizing benefits.
Next NJ Manufacturing Program
Established in August 2025, this five hundred-million-dollar initiative incentivizes manufacturing investment and job creation. Eligible businesses are those that have a New Jersey facility at least 50% engaged in the manufacturing process. These businesses may receive credits equal to the lesser of 0.1% of total capital investment multiplied by the number of new full-time jobs created or 25% of qualified investment, capped at $150 million per project. For its first two years, $100 million is reserved for clean energy product manufacturers. Additional bonuses are available for certified businesses and those in Opportunity Zones. The state is actively working on publishing additional guidance on the application process and other program details.
How Forvis Mazars Can Help
The State and Local Tax Credits and Incentives Team at Forvis Mazars can guide your company through these opportunities, from structuring bids in consideration of NJIEF scoring to helping prepare manufacturing program applications. We can aid with compliance, competitiveness, and alignment with your broader growth strategy.