Bill
Bill > A3893
summary
Introduced
01/13/2026
01/13/2026
In Committee
01/13/2026
01/13/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 Regular Session
Bill Summary
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
This bill requires that any recipient of economic incentives from the New Jersey Economic Development Authority (EDA) that fails to meet the terms of their agreement will face a penalty. This penalty will be calculated by multiplying the recipient's applicable tax rate by the total value of the incentive they received up to the point of nonperformance, and this money will go to the State's General Fund. The EDA, in collaboration with other state agencies like the Department of Labor and Workforce Development and the Division of Taxation, will establish standards to ensure these incentive programs are properly managed and that recipients are meeting their obligations. For incentives awarded after this bill becomes law, the EDA will annually check if recipients are fulfilling their requirements and will notify the Division of Taxation if they are not. Importantly, any incentive value already factored into a previous penalty calculation will not be counted again for future penalties. The bill also clarifies that these new rules will not override existing contractual rights for incentive agreements already in place before the bill's effective date.
Committee Categories
Business and Industry
Sponsors (2)
Last Action
Introduced, Referred to Assembly Commerce and Economic Development Committee (on 01/13/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2026/A3893 |
| BillText | https://pub.njleg.gov/Bills/2026/A4000/3893_I1.HTM |
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