tax incentives

The Philadelphia-based late-night delivery company goPuff said it did not have to disclose multiple federal labor violations to New Jersey officials when it successfully applied for a $39 million tax incentive in July 2018.

In a letter to the state Economic Development Authority last month that was obtained by WHYY, a goPuff attorney said the firm did not consider its 15 federal overtime and minimum-wage violations to be a “legal proceeding” as defined by the application, so the company did not disclose them. (The company’s legal name is goBrands.)

The New Jersey Economic Development Authority has asked for more information from six companies that received state tax breaks, including several that a task force found may have misled regulators on their applications.

State officials want “to afford the companies the opportunity to respond in writing to a range of recent developments, including last week’s report from the Task Force on NJEDA Incentives and a recent legal settlement,” the authority said in a press release Wednesday morning.

N.J. tax-break programs poorly monitored, audit finds

Jan 10, 2019

An audit critical of the New Jersey Economic Development Authority’s tax incentive programs found a lack of oversight and few policies to ensure that companies make good on promises outlined in their tax break agreements.

The EDA failed to verify that businesses honored their job commitment goals, the audit found, meaning the state could not be sure it was getting the economic benefits it had anticipated.

In a sampling of companies that received tax breaks, the N.J. State Comptroller’s office was unable to verify if 20 percent of the promised jobs had been created.