Requires certain economic incentive recipients to pay penalty for nonperformance.

This bill requires businesses or individuals receiving New Jersey Economic Development Authority (EDA) incentives - such as grants, tax credits, or loans - to pay a penalty if they fail to meet program requirements. The penalty equals the recipient’s applicable tax rate multiplied by the total value of the incentive received up to that point, paid to the state’s General Fund. The EDA must annually verify compliance with incentive agreements and notify the Division of Taxation about noncompliant recipients. It applies to new incentives awarded after the bill’s effective date, ensuring recipients fulfill obligations tied to economic development programs. The bill does not affect existing contracts or reduce current contractual rights under active incentive agreements.