The New Jersey Housing and Mortgage Finance Agency (NJHMFA) is inviting businesses in the state to participate in a State Tax Credit Auction, which will be held from April 15 to May 15. The auction aims to raise up to $100 million through the sale of New Jersey State tax credits to eligible businesses. Proceeds from the auction will support affordable and workforce housing initiatives.
Businesses interested in taking part can find information about the bidding process on the NJHMFA auction website at https://www.nj.gov/dca/hmfa/about/auction/.
The State Tax Credit Subsidy (STCS) Program is designed to increase access to safe and affordable housing for low- and moderate-income families in New Jersey. By conducting a competitive and transparent auction, NJHMFA seeks to encourage public-private investment in housing projects across the state.
According to NJHMFA, this program expands its financing options and strengthens its ability to help more families secure housing.
“The State Tax Credit Auction affords NJHMFA a vital means to raise the money needed to create more affordable and workforce housing across the state,” said Executive Director Melanie R. Walter. “This program pairs tax relief for New Jersey businesses with core housing programs that exist to make the state a more affordable place for New Jersey families to live. It’s an unconventional, but mutually beneficial opportunity.”
This event marks the first STCS auction of 2026. If all available tax credits are sold during this period, it will be the only such auction held that year.
The minimum bid for each tax credit is set at 80 cents per dollar of credit value. Businesses awarded these credits can apply them toward their Corporate Business Tax or Insurance Premium Tax liabilities beginning with the 2026 tax year. Any unused credits may be carried forward for up to seven years.
Revenue from the auction will be split evenly: half will go toward helping municipalities meet affordable housing targets, while the other half will fund workforce housing development. All funds raised through this program will be combined with federal 4% Low-Income Housing Tax Credits administered by NJHMFA.
The STCS Program aims to create new homes for low-income families earning less than 60% of area median income as well as middle-income households earning between 80% and 120% of area median income. By combining resources like LIHTC with state funding, NJHMFA expects billions of dollars’ worth of new housing opportunities throughout New Jersey.
Applications for subsidies from STCS Program funds will open when sufficient funding has been secured through credit sales. Projects must meet eligibility requirements and have confirmed financial backing before being considered for approval by NJHMFA’s Board.
More details about eligibility and participation are available at https://www.nj.gov/dca/hmfa/about/auction/.
