Panel probing New Jersey’s tax credit programs holds 2nd hearing

A task force investigating New Jersey's multibillion-dollar business tax incentive programs held its second public hearing Thursday.

News 12 Staff

May 3, 2019, 12:25 AM

Updated 1,912 days ago

Share:

A task force investigating New Jersey's multibillion-dollar business tax incentive programs held its second public hearing Thursday.
Gov. Phil Murphy created the task force this year after a state comptroller's audit showed the state authority that oversees the programs failed in some cases to verify that businesses met required benchmarks.
The hearing comes a day after reports by the New York Times and WNYC raised questions about how the tax-credit legislation was written and then doled out in Camden.
The reports led Murphy to suggest a "total revamp" of the programs overseen by the Economic Development Authority is needed.
Former state Sen. Ray Lesniak says that he feels caught in the middle of the current debate. He was the legislator who sponsored the 2013 Economic Opportunity Act, which expanded the state's tax incentive programs.
“This is a political feud. When the discussion should be about the need for tax credits and how to administer them effectively,” Lesniak says.
Murphy has criticized programs enacted under his predecessor, former Gov. Chris Christie. Those programs expire June 30. Murphy says he wants to cap how much the state awards in credits.
The WNYC report found that two-thirds of the $1.6 billion in tax breaks went to companies that said they were relocating to Camden, went to companies with links to George Norcross, a longtime Democratic powerbroker who holds no elected office.
Norcross said in a statement, “The fact that private investment is returning to Camden is no accident — it was planned and fought for."
Critics of the 2013 law say that sections of it appear to specifically benefit certain companies. But Lesniak says that this was the purpose of the law.
“That's why I tailored the tax incentive for the Jersey Gardens Mall. That's why we tailored Panasonic. They have to be tailored. We can't compete with other states. It's not possible. We're a high cost of doing business state. Yes, they're tailored to attract companies that would go elsewhere,” he says.
The state task force made one criminal referral for unregistered lobbying. A member of the panel said Wednesday that companies which made false statements in their applications for tax credits could have violated federal mail and wire fraud laws.
The Associated Press wire services contributed to this report.


More from News 12
2:16
Fire at Fair Lawn strip mall destroys multiple businesses, including popular Zadies Bakery

Fire at Fair Lawn strip mall destroys multiple businesses, including popular Zadies Bakery

2:42
Beautiful weekend ahead for New Jersey with sunny skies and warm temperatures

Beautiful weekend ahead for New Jersey with sunny skies and warm temperatures

1:54
Boar’s Head deli meat recalled for potential listeria contamination

Boar’s Head deli meat recalled for potential listeria contamination

0:46
New Jersey to receive more than $72M to help coastal communities prevent flooding

New Jersey to receive more than $72M to help coastal communities prevent flooding

1:43
Officials: Lead found on Keyport beach not ‘urgent risk’ to public health, no need to close beach

Officials: Lead found on Keyport beach not ‘urgent risk’ to public health, no need to close beach

0:44
Jersey Proud: Goya Gives Day collects 100,000 pounds of food donations

Jersey Proud: Goya Gives Day collects 100,000 pounds of food donations

1:01
‘It’s a beautiful sport.’ New pickleball courts open in Howell Township

‘It’s a beautiful sport.’ New pickleball courts open in Howell Township

0:29
Man who pleaded guilty to attacking Jewish men sentenced to 30 years on terror charges

Man who pleaded guilty to attacking Jewish men sentenced to 30 years on terror charges

0:55
EPA completes Phase 1 of Superfund site cleanup at Unimatic Manufacturing site in Fairfield

EPA completes Phase 1 of Superfund site cleanup at Unimatic Manufacturing site in Fairfield

0:20
West New York school named for Sen. Menendez to revert to original name

West New York school named for Sen. Menendez to revert to original name

0:30
Attorney general: NJ state trooper ‘inexcusably crossed the line,’ admits to punching handcuffed woman in the face in 2022

Attorney general: NJ state trooper ‘inexcusably crossed the line,’ admits to punching handcuffed woman in the face in 2022

0:15
East Brunswick police: Bicyclist killed in Route 18 crash

East Brunswick police: Bicyclist killed in Route 18 crash

0:30
No one injured in Kenilworth house fire

No one injured in Kenilworth house fire

1:04
Attorney general releases body camera footage of fatal Hamilton police-involved shooting

Attorney general releases body camera footage of fatal Hamilton police-involved shooting

0:15
Part of Manchester’s Harry Wright Lake closed due to high levels of fecal bacteria

Part of Manchester’s Harry Wright Lake closed due to high levels of fecal bacteria

0:23
2 dead in Maine plane crash after leaving New Jersey airport

2 dead in Maine plane crash after leaving New Jersey airport

0:18
$1 million lottery ticket won from $20 scratch-off at North Wildwood Wawa

$1 million lottery ticket won from $20 scratch-off at North Wildwood Wawa

1:59
Paws & Pals: Felicity now up for adoption at Associated Humane Societies

Paws & Pals: Felicity now up for adoption at Associated Humane Societies

1:17
Gov. Murphy discusses potential Menendez replacement on ‘Ask Gov. Murphy’

Gov. Murphy discusses potential Menendez replacement on ‘Ask Gov. Murphy’

0:40
State, federal lawmakers introduce legislation to shorten funding gap for World Trade Center Health Program

State, federal lawmakers introduce legislation to shorten funding gap for World Trade Center Health Program