$260 million

July 11, 2014 | Number of The Day
Tax break for Camden-bound company would be 3rd-highest in state history

The state Economic Development Authority approved a tax break package of $260 million over 10 years for Holtec International, an energy-products supplier based in Evesham Township in Burlington County.

In return for the tax break, the company said it would move 160 employees to the Camden waterfront and hire an additional 235.

The chief executive officer of Holtec International is an associate of George Norcross, the Democratic powerbroker who hails from Camden. Holtec is designing a small, remote nuclear reactor that will be safer and cleaner, enabling it to reduce greenhouse gases.

The subsidy is the third-largest ever awarded by the state, after the American Dream complex in the Meadowlands and the Revel Casino.

The award, while hailed by state, local, and EDA officials, immediately came under fire by New Jersey Policy Perspective. Gordon MacInness, president of NJPP, issued a statement noting that the tax incentive boiled down to $658,228 per job — the highest ever for New Jersey and far higher than any of the megadeals occurring across the country.

According to NJPP’s analysis, New Jersey will lose on the deal unless Holtec remains in the state more than 30 years. The company needs to remain in the state only 15 years to get the full tax break.

MacInness also termed the deal an example of a “reckless surge” of business-tax subsidies that have not proven that tax breaks will grow a state’s economy.