Making a surprising move amid the state’s budget crisis, New Jersey officials approved the third-largest economic subsidy in their state’s history on July 10,according to The Star-Ledger. The package of tax credits – worth $260 million over the course of the next 10 years – will go to energy company Holtec International, which plans to move a manufacturing plant to the Camden waterfront.
The terms of the agreement include 395 jobs being added to the area, though 160 of these jobs will be moved from elsewhere in the state, according to the news source. The state Economic Development Authority estimated that New Jersey will realize a net economic benefit of $155,520 over the next 35 years from the project, though the company will only be required to stay in the location for 15 years.
There have been criticisms from both the left and the right regarding the subsidy, which has come at a time during which New Jersey is struggling to pay for schools, hospitals, pension obligations and property tax rebates, The Philadelphia Business Journal explained. Not going without remark is the fact that South Jersey power broker George Norcross, brother of State Sen. Donald Norcross, who co-sponsored the Economic Opportunity Act of 2013, sits on the board of directors for Holtec International. Many also feel that $260 million is too much to pay for the creation of just 235 new jobs, which averages out to just over $110,000 per job, per year.
Holtec International CEO Krishna Singh had narrowed the options for the new plant down to Camden and Charleston, South Carolina, according to the New Jersey Economic Development Authority, the news source reported. Receiving the credit was key to the company’s decision to choose Camden over Charleston, an otherwise lower cost option.
Supreme Court and Title VII: Implications for Reverse Discrimination
Earlier this month, the U.S. Supreme Court issued a decision in Ames v. Ohio Department of Youth Services vitiating the so-called “background circumstances” test required by half of federal circuit courts.1 The background circumstances test required majority group plaintiffs pleading discrimination under Title VII of the Civil Rights Act to meet a heightened pleading standard […]
Special purpose acquisition companies (better known as SPACs) appear to be making a comeback. SPAC offerings for 2025 have already nearly surpassed last year’s totals, with additional transactions in the pipeline. SPACs last experienced a boom between 2020–2021, with approximately 600 U.S. companies raising a record $163 billion in 2021. Notable companies that went public […]
Short Form Merger: Streamlining the Process for Businesses
Merging two companies is a complex legal and business transaction. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process that involves important corporate governance considerations. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process. However, […]
Tariff Response Options for Small Businesses Facing Financial Distress
The Trump Administration’s new tariffs are having an oversized impact on small businesses, which already tend to operate on razor thin margins. Many businesses have been forced to raise prices, find new suppliers, lay off staff, and delay growth plans. For businesses facing even more dire financial circumstances, there are additional tariff response options, including […]
Common Causes of Partnership Disputes and How to Resolve Them
Business partnerships, much like marriages, function exceptionally well when partners are aligned but can become challenging when disagreements arise. Partnership disputes often stem from conflicts over business strategy, financial management, and unclear role definitions among partners. Understanding Business Partnership Conflicts Partnership conflicts place significant stress on businesses, making proactive measures essential. Partnerships should establish detailed […]
Businesses Are Facing Financial Headwinds—A Practical Guide
*** The original article was featured on Bloomberg Tax, April 28, 2025 — As a tax attorney who spends much of my time helping people and companies who have large, unresolved issues with the IRS or one or more state tax departments, it often occurs to me that the best service that I can provide […]
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