SECAUCUS – On second thought, we stand by our first decision. That’s what the state Economic Development Authority (EDA) ruled today after reconsidering a package of tax incentives recently approved for the electronics company Panasonic.
The decision is a setback for Secaucus, Panasonic’s current home, which is hoping to persuade the multi-billion-dollar electronics company to stay put.
Last month the EDA approved $102.4 million in tax credits to Panasonic after learning the company is looking for a new home for its U.S. corporate headquarters and is exploring several possible sites in other states. The EDA approved the tax incentives in hopes of keeping Panasonic in New Jersey. The company may end up moving to Newark.
Illinois, New York, Georgia, and California are among the states on Panasonic’s short list for its new home, according to the EDA.
If Panasonic moved, it would mean 800 jobs would move with it. The tax incentives were approved through the Urban Transit Hub Tax Credit program. The program gives tax credits to certain companies that employ at least 250 full-time workers and build or rent office space in or near nine designated urban transit communities. Newark is among the nine designated urban transit hubs, while Secaucus is not.
Secaucus officials and Hartz, Panasonic’s current landlord, believe the tax incentives offered to the company have placed the town in a losing competition with Newark for Panasonic’s affections. After both Secaucus and Hartz complained to the EDA, the state agency agreed to re-examine the fairness of the incentives offered to Panasonic and whether it had misused the urban tax credit program.
“Our argument was that jobs that already exist in New Jersey shouldn’t be counted as new jobs,” said Secaucus town Administrator David Drumeler. “This is a fight we don’t really want to be in, Secaucus v. Newark. We don’t want to fight amongst ourselves. But we see this as an intrastate move and the Urban Transit Hub Tax Credit program was created to bring companies to New Jersey from other states. That’s why we objected to it.”
Secaucus and Hartz have vowed to continue their fight to keep Panasonic in town.
Allen Magrini, senior vice president of land use development for Hartz, said Wednesday the company is considering legal action to fight the tax credits. – E. Assata Wright
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