Holtec International, a key player in the decommissioning of nuclear power sites, is set to pay a hefty $5 million penalty in the aftermath of a criminal investigation into substantial tax breaks associated with influential New Jersey Democrat George Norcross III. The penalty, disclosed by the state attorney general’s office on Tuesday, allows Holtec to sidestep criminal charges tied to a deceptive 2018 application for $1 million in tax credits.

George Norcross III, a high-profile insurance executive and board member of Holtec, has long held sway in New Jersey politics, using his influence in the national Democratic Party and Camden County. Although never elected, Norcross’s political clout has endured, despite recent setbacks.

New Jersey’s Attorney General, Matthew J. Platkin, delivered a firm message, stating, “We are sending a clear message: No matter how big and powerful you are, if you lie to the state for financial gain, we will hold you accountable — period.” Holtec, on the defensive, expressed regret through its president, Kelly Trice, calling the dispute “unfortunate” and emphasizing the company’s renewed commitment to clean energy initiatives.

Holtec’s receipt of a substantial $260 million tax credit in 2014, within the framework of an $11 billion package, became a focal point during Governor Philip D. Murphy’s tenure.

The most recent legal accord shields Holtec from precise criminal charges associated with a misrepresented 2018 application, affording the company the opportunity to amplify its tax break. The application deceptively suggested an impending expansion while masking the project’s actual completion, and it also implicated another company, Singh Real Estate Enterprises.

Holtec, actively decommissioning nuclear plants including Indian Point, Oyster Creek Generating Station, Pilgrim Nuclear Power Station, and Palisades Power Plant, faces scrutiny over the intricacies of tax incentives and corporate accountability. Despite Governor Murphy’s earlier criticism of tax breaks, his approval of a larger $14 billion corporate tax break package in 2020 adds complexity to New Jersey’s political landscape.