U.S. dollars. | Getty Tax incentive task force says it’s saved state $11M in clawbacks, but won’t name companies

The tax incentive task force appointed by Gov. Phil Murphy says it has saved New Jersey $11 million by reviewing tax breaks the state has granted and getting some of the companies to voluntarily relinquish their awards.

The problem is that the task force won’t provide the names of the companies that have agreed to give up some or all of their awards, making it difficult to independently verify the amount the panel claims to have saved the state.


“We have already entered into agreements with some vendors that they will give back or relinquish their tax incentives,” said Rutgers Law professor Ronald Chen, who chairs the task force. “But in order to get them, we agreed not to voluntarily disclose them.”

Open records advocates say the state should not be able to keep that information secret.

The $11 million could help justify the task force’s existence, considering its work has not been cheap.

Invoices submitted by the two law firms working on the task force — Walden Macht & Haran LLP and Quinones Law, PLLC — show they have collectively billed the state just under $8 million since the task force was formed early last year, with the most recent invoice dated Jan. 2. POLITICO reviewed the records, which were first requested by the Associated Press. The figure could change, since half the amounts are “pending review and approval“ and it will almost certainly grow since the task force is expected to remain active for about two more months.

It’s not clear whether the $11 million the task force claims to have saved the state is primarily refunds from companies that had already received the tax breaks, or money the state had not yet paid out in incentives and will no longer have to.

Chen predicted the task force would voluntarily recoup even more money.

New Jersey has approved about $7 billion in corporate tax breaks since former Gov. Chris Christie signed the Economic Opportunity Act of 2013, which vastly expanded the state’s tax incentive programs. The law expired last summer and has not been renewed amid disagreements between Murphy and Senate President Steve Sweeney over whether limits should be placed on how much the state can award in incentives each year.

The task force found that the Economic Development Authority, which administered the incentive programs, was loath to delve deep into companies’ applications during the Christie administration to verify their claims that they would not have moved to New Jersey or would leave the state without incentives. It has also alleged that several entities with ties to South Jersey Democratic power broker George Norcross wrote and took advantage of the programs.

According to its latest report, dated Jan. 16, the task force has “facilitated several voluntary terminations of awards and has also referred other projects to the State Treasury or either law enforcement agencies, the EDA, or both, whose independent review may result in, among other things, steps to suspend or terminate these awards.”

“The aggregate savings to the State from voluntary terminations of awards exceeds $11 million, while the potential aggregate savings from projects that the Task Force has referred so far exceeds $540 million,” the report states.

Chen said that if task force hadn’t entered into voluntary agreements with the companies not to identify them, “the attorney general would have to litigate it and it would cost us even more money.”

But public records advocates said they doubt the task force can keep that information secret over the long term.

“Citizens have a right to know who’s paying taxes and who’s not, since we’re all paying into the same pool,” said John Paff, a longtime advocate for open government.

Paff said he believes the information should be available through an open public records request. State Sen. Loretta Weinberg, who often advocates for open government, also said she doesn’t believe the tax incentive settlements can be kept confidential.

“You can’t have some agency walking around to make agreements on behalf of the state and they’re not subject to” New Jersey's public records law, she said.

POLITICO filed a public records request with the EDA, which said it did not have any documents on claw backs. “The NJEDA was not party to any agreements struck by the Task Force, so any information about these agreements must come from the Task Force,” EDA spokesperson Jake McNichol said in a statement.

POLITICO also filed a public records request with the governor’s office, which is pending.

Chen said that he expects the task force to conclude its work by around April 1.