A recent review by the Office of the State Comptroller (OSC) revealed that New Jersey's Economic Development Authority (EDA) has recovered $3.4 million in improperly awarded tax breaks. This recovery is part of a broader effort to address issues identified in previous audits.
The original audit conducted by OSC in 2019 found that EDA had distributed billions in tax incentives without verifying whether businesses created the promised jobs. In a follow-up review in 2022, OSC reported that out of 21 recommendations made, EDA had fully implemented ten but had taken limited action to recover improperly awarded credits and payments.
In its latest 2025 review, OSC examined incentive awards from 2022 and 2023 and found that EDA successfully reclaimed $3.4 million from 15 projects. A significant portion, about $2.5 million, involved Business Employment Incentive Program tax credits across three projects where incorrect data was initially used for award calculations.
Despite these recoveries, some recommendations remain partially or not implemented. Notably, EDA has yet to assess the net economic benefits of three Urban Transit Hub Tax Credit Program awards. The OSC estimates up to $20 million should be recovered due to unmet economic benefit promises.
Governor Phil Murphy prompted OSC's initial audit through an executive order after finding “key internal controls were lacking or nonexistent.” The audit noted EDA’s failure to confirm job creation or compliance with program requirements, leading to an investigative task force and subsequent reviews.
While the five audited incentive programs have been shut down, EDA now administers new programs not covered by this review.
