As tax credits near $6B, A.C. project among latest in line

A project in Atlantic City could be awarded close to $33 million in tax credits when the New Jersey Economic Development Authority board meets Thursday.

The EDA didn't give details Wednesday about the applicant, Atlantic City Contact Center L.L.C., or the project. A spokeswoman said she could not comment before Thursday's meeting.

The meeting agenda says the tax credits - $3.27 million a year over 10 years - would encourage the applicant to "make a capital investment and locate in Atlantic City."

Other agenda items include an application for more than $187 million in tax credits - $18.7 million annually - by JPMorgan Chase & Co. to locate in Jersey City. The Wall Street Journal reported this week that the company wants to relocate 2,150 jobs from New York City.

If those applications and others are approved Thursday, New Jersey will have awarded more than $6 billion in subsidies since 2010, compared with $1.2 billion in the prior decade, according to New Jersey Policy Perspective (NJPP).

The left-leaning think tank said tax credits have climbed since New Jersey overhauled its economic development programs in 2013.

The Economic Opportunity Act, passed with bipartisan support from lawmakers and signed into law by Gov. Christie, expanded the availability of tax incentives for businesses.

Critics, including NJPP, say the credits are giveaways to corporations that have not helped the state's economy. Business groups and other backers say they are necessary for New Jersey to compete with other states in attracting investment.

According to NJPP, New Jersey awarded $1.1 billion in tax credits in 2013, and $2 billion last year.

Since 2013, more than $600 million in tax breaks have gone to projects in Camden, including energy company Holtec, awarded $260 million in credits to move from Marlton. Defense contractor Lockheed Martin was awarded $107 million, and Subaru $118 million, each to move from nearby Cherry Hill.

Thursday's agenda includes a modification for Subaru, which is asking for an extension to complete its project and the issuance of accompanying tax credits from 2017 to 2018.

Source: Philly.com