The measure prohibits the state from awarding any "economic development subsidy" of more than $25,000 that is designed to stimulate economic development, including a bond, grant, loan, loan guarantee, matching fund, tax credit or other tax expenditure, if the applicant has not fulfilled the requirement of an earlier award.
Sponsors said the legislation will ensure that state funds are used responsibly.
"Economic development subsidies have a role to play in restoring our economy and putting New Jersey residents back to work," said Assemblyman Tim Eustace, D-Maywood.
"But it's important that they're awarded to businesses that are in good financial standing. This common-sense law will help ensure that taxpayer funds are used most efficiently."
