News & Insights

New Jersey Tax Incentive Program Improves Oversight Position

Tax Development Jan 13, 2022

New Jersey Tax Incentive Program Improves Oversight Position

The New Jersey Office of the State Comptroller released a report finding that the Economic Development Authority (EDA) has substantially improved oversight of the administration of the state’s tax incentive programs. An audit undertaken in 2019 determined there was a lack of oversight and transparency in the grant process determining eligibility of applicants. The audit revealed that unreliable data was used for awarding tax incentives with poorly designed systems accounting for jobs created under the programs. The audit provided 21 recommendations to improve the grant process and subsequent monitoring of the program.

The EDA incorporated the following recommendations to ensure a return on the state’s investments:

  • Establish monitoring and oversight activities to analyze whether jobs were created and retained.
  • Establish a business’s baseline employment numbers upon application to properly monitor newly created jobs.
  • Establish job reporting requirements and collect documentation to support job creation.
  • Establish monitoring processes to assess business performance to compare to Department of Labor data.
  • Develop uniform templates for reporting by businesses.

Other recommendations that have not yet been implemented will further increase accountability. The EDA plans to develop additional practices to ensure that businesses are complying with the terms of the incentives granted by maintaining proper employment status. 


Mark L. Nachbar

Mary Bernard

The material presented in this communication is intended to provide general information only and should solely be seen as broad guidance and not directed to the particular facts or circumstances of any individual who may read this publication. No liability is accepted for acts or omissions taken in reliance upon the content of this piece. Before taking (or not taking) any action, readers should seek professional advice specific to their situation from Ryan, LLC or other tax professionals. For additional information about this topic, please contact us at