Holtec settles with New Jersey over tax credits

February 1, 2024, 9:30AMNuclear News
The Holtec technology and manufacturing campus in Camden, N.J. (Photo: Holtec)

Holtec International has agreed to pay $5 million in penalties to the state of New Jersey to avoid criminal prosecution over $1 million in tax credits that the company, along with Singh Real Estate Enterprises (SRE), sought in 2018. Holtec has also agreed to retain an independent reviewer approved by New Jersey to monitor future applications for state benefits.

In 2018, Holtec and SRE applied to the New Jersey Economic Development Authority (EDA) for tax credits from the state’s Angel Investor Tax Credit Program. The state has claimed that Holtec, trying to double a $500,000 tax credit for its $12 million investment in the Eos Energy Storage battery company, created new investment documents after the fact that made it appear that both Holtec and SRE had each invested $6 million in Eos Energy.

The agreement: Under its agreement with New Jersey, which was announced on January 30 by Matthew Platkin, the state’s attorney general, Holtec and SRE will forego the $1 million in claimed tax credits and will not further pursue tax credits from the Angel Investor program. The agreement will be in effect for up to three years.

Holtec has denied engaging in any misconduct, saying it appropriately had used one of the nation’s largest accounting and tax firms to submit its application for the tax incentives.

In a statement, the company said, “This agreement comes on the heels of the state losing twice in court regarding previous tax credits, only to come back a third time using the threat of criminal prosecution to finally get a public ‘win,’ needlessly punishing a large New Jersey manufacturer on the forefront of the green energy revolution in America.”

In 2014, the New Jersey EDA approved $260 million in tax credits over a 10-year period for the creation of a technology and manufacturing campus in Camden, N.J., but later rescinded $26 million of those credits. Holtec subsequently sued the state for breach of contract and in November 2023 an appeals court ruled in favor of Holtec.

Camden campus: The agreement follows a January 18 announcement by Holtec that the company is funding the construction of a new facility at its 55-acre Camden campus. The facility will house two of Holtec’s growing subsidiaries, Holtec Security International and Holtec Government Services.

“Our continued investment, development, and commitment to Camden, the city of my roots, is evidenced by our actions,” said J. Scott Thomson, president of Holtec Security International. “During my 25 years as a police officer in Camden, the final 11 years as the chief of police, I can recall how the exact site of our new facility was once a location of abandoned homes used by drug gangs who operated with impunity and carried out reprehensible activities in broad daylight. This new home for HSI will soon be the fusion center from which both physical and cyber security leverage innovative technologies that will be deployed for our clients in our region and around the world.”

The agreement also follows news that Holtec is to receive a $1.5 billion conditional Department of Energy loan to help it restart the Palisades nuclear power plant in Michigan.

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