Department of Treasury Develops Better Oversight Tools
The Department of Treasury, under New Jersey’s Governor Phil Murphy, has set up an electronic-tracking system to provide oversight capabilities on all corporate tax-credit sales in real time, according to NJ Spotlight.
Tax credits, which can be awarded by the U.S. Economic Development Administration (EDA) for meeting hiring or investment goals, help companies generate capital or derive value from a tax break. They are often sold to another company at a discount, none, however, can be transferred for less than 75 percent of its original value.
While the new tracking system will lead to better budget forecasting, tax credit sales had not been closely monitored by previous administrations.
“We were surprised and a bit alarmed to find out that previous administrations had very little oversight in place, particularly when it comes to tracking the transfer of tax credits,” said Treasurer Elizabeth Maher Muoio. “With more than 70 percent of tax credits transferred to date, the need for additional oversight and monitoring is critical.”
Tim Sullivan, the head of the EDA, said, “The NJ EDA’s highest obligation is to be a careful steward of taxpayer dollars and to ensure that our programs most effectively support Gov. Murphy’s goals of building a stronger, fairer economy that works for everyone in New Jersey.”