Bill > A1445

Introduced Session

This bill requires that a recipient of a New Jersey Economic Development Authority (EDA) economic incentive, as defined in the bill, that does not perform to program and incentive agreement requirements pay a penalty for nonperformance in an amount equal to the product of: (1) the applicable tax rate for the recipient in the privilege period or taxable year in which the EDA has made a determination of nonperformance; multiplied by (2) the total value of the respective benefit or incentive received up to that privilege period or taxable year. The penalty is to be paid to the Treasurer of the State of New Jersey for deposit in the General Fund. The bill further specifies that the value of a benefit or incentive properly included in the formulation of a penalty is not to be aggregated with the value of any additional benefit or incentive received in the event of any subsequent determination of nonperformance. The bill requires the EDA, in consultation with the Department of Labor and Workforce Development, the Office of the State Comptroller, and the Division of Taxation, to adopt rules and regulations to establish minimum standards for the administration of economic incentive programs to verify whether each benefit or incentive recipient has performed to all requirements under any applicable economic incentive program or incentive agreement. The bill specifies that for an award of a benefit or incentive made after the effective date of the bill, the EDA is required to annually determine whether each such benefit or incentive recipient has performed to all requirements under any applicable economic incentive program or incentive agreement. The EDA is required to notify the Director of the Division of Taxation of each benefit or incentive recipient that has not performed to a requirement under any applicable economic incentive program or incentive agreement.

AI Summary

Committee Categories

Robert Karabinchak (D)*,  Sterley Stanley (D)*, 

Introduced, Referred to Assembly Commerce, Economic Development and Agriculture Committee (on 01/09/2024)

Official Document