$5.4 billion

May 8, 2015 | Number of The Day
Total tax breaks state has awarded NJ businesses since 2010

In 2013, the state created the Economic Opportunity Act, which advocates the use of corporate tax subsidies as a way to attract and keep jobs in the Garden State. But now some advocates are calling for a moratorium on the practice, after the state has awarded $5.4 billion since 2010 — and $2 billion alone in 2014.

Now, the main sponsor of the act, Sen. Raymond Lesniak (D-Union) is advocating a change in the rules that determine whether a project should get the go-ahead for corporate tax subsidies.

He’s also joining with the liberal-leaning New Jersey Policy Perspective in calling for more transparency in the process.
NJPP wants to place a moratorium on all new subsidy awards until Treasury produces an annual report detailing the outcomes of past tax breaks, as well as the current- and next-year cost to the state of all subsidies. The Department of the Treasury is required to produce the report as part of a 2007 law. Due to complaints, NJPP says the Economic Development Authority has begun to release some information but has yet to produce a detailed report as the law requires.