According to two of the sources, the subpoena is seeking documents related to several companies that have received tax incentives, as well information on the EDA’s policies and procedures. | AP Photo Sources: EDA hit with grand jury subpoena over tax credit program

A state grand jury is looking into New Jersey’s tax incentive program and has issued at least one subpoena to the New Jersey Economic Development Authority, according to three sources.

The sources requested anonymity because of the sensitive nature of the investigation.


It’s not clear if a special grand jury was convened to look into the program or if the subpoena came from an ongoing grand jury. However, this is the first indication a grand jury is involved. The state attorney general’s office said in January that it had begun a probe into the program after a comptroller’s report cited lack of oversight and other problems.

A spokesperson for the EDA did not respond to calls and emails seeking comment. A spokesperson for the attorney general’s office said only that the office will neither confirm nor deny investigations.

According to two of the sources, the subpoena is seeking documents related to several companies that have received tax incentives, as well information on the EDA’s policies and procedures.

A task force appointed by Gov. Phil Murphy announced in March that it made a criminal referral to law enforcement about alleged unregistered lobbying during the drafting of the legislation that created the state’s current tax incentive programs, although it did not specify who the subject was.

The task force has raised questions about whether several companies — including Jackson Hewitt and several South Jersey firms linked to Democratic power broker George Norcross — submitted documents that suggested they would move to Philadelphia based on what the task force characterized as cursory and unrealistic office space lease proposals.

WNYC reported last week that Holtec, which was approved for a $240 million tax incentive, falsely said on its application for tax credits that it had never been barred from doing business with a state or federal agency, when in fact it had.

And The New York Times reported that attorney Kevin Sheehan of Parker McCay — the law firm run by Philip Norcross, the brother of George Norcross — had drafted key provisions of the tax credit legislation in 2013. His firm’s clients reportedly went on to take advantage of the provisions.

A spokesperson for the Norcross-linked companies told POLITICO on Friday that none had received subpoenas. A spokesperson for Holtec did not respond to an email seeking comment.

Ryan Hutchins contributed to this report.