Holtec International Offered Massive Tax Credit by EDA

By George N. Saliba, Managing Editor On Jul 10, 2014

The New Jersey Economic Development Authority today approved the third-largest tax credit in its 40-year history for Holtec International, a leading-edge, diversified energy technology company which has an engineering and technology headquarters in Marlton.  Among its various areas of focus, Holtec has been a leader in developing a “new generation small modular nuclear reactor, named SMR-160, which will provide power to 1.75 million people around the world.”  The firm plans to build a state-of-the-art, greenfield manufacturing facility and design center for SMR-160 components and other purposes, and it is now deciding whether to construct the facility in Camden or Charleston, South Carolina.  Of note, the company will not generate, transport or store nuclear fuel at the proposed facility.

According to an EDA agenda memo obtained by New Jersey Business magazine, “The management of Holtec International has indicated that the grant of tax credits is a material factor in the company’s decision whether or not to locate the project in Camden.”

The EDA agenda memo adds, “If Holtec chooses the Camden option, the company would enter a ground lease with the South Jersey Port Corporation for land on the waterfront in South Camden where it would construct a 600,000-square-foot manufacturing facility and design center. Holtec would set up a Garden State Growth Zone Development Entity to develop the project and own the improvements. This would result in a capital investment of $260,000,000 and the project would bring 395 jobs to Camden that would not otherwise exist in the city. Charleston, South Carolina is a lower cost option for the facility and consequently Holtec is requesting an incentive through the Grow New Jersey program to locate the project in Camden.”

The EDA says the Holtec project would represent a significant, positive step forward for Camden’s redevelopment efforts (Camden ranks 566 out of 566 municipalities in the 2007 New Jersey Municipal Revitalization Index).