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A Mercer County judge ruled that the New Jersey Economic Development Authority cannot freeze or withhold annual tax break payments for nuclear energy company Holtec International‘s $260 million incentive.

Judge Robert Lougy, on Dec. 30, put cold water on the state’s efforts to slow-walk the tax break awards to Holtec. As part of the decision, the state has to issue a letter of compliance to Holtec for 2018’s full annual payment amount of $26 million.

Holtec was awarded the $260 million Grow NJ tax break in 2014 for moving to Camden, making it one of the largest economic incentive awards in state history.

Under the original agreement, Holtec would get $26 million a year for 10 years after it moved many of its operations to Camden. Lougy said Holtec could be owed another two, $26 million payments for 2019 and 2020.

“Holtec is pleased by the judge’s decision and looks forward to working with the State of New Jersey and the City of Camden in the future,” Holtec Senior Director of Government Affairs & Communications Joe Delmar said via email.

The NJEDA said it was looking at appealing the judge’s decision.

The company fell under state scrutiny, along with the incentive program, in 2019 and 2020, with several attorneys hired by the Murphy administration delving into provisions of the 2013 tax break law that it alleged were made to directly benefit Holtec.

The awards were put on hold in 2019 amid that state investigation.

According to a task force the Murphy administration convened to scrutinize the Grow NJ incentive program, which expired on July 1, 2019, Holtec Chief Executive Officer and President Kris Singh did not disclose on the company’s tax break application that the company was barred from doing any work for the federal government. However, in 2010 it was banned for 60 days from any federal contracts, following a bribery scandal with the Tennessee Valley Authority in the early 2000s.

Holtec sued in April 2020. In his Dec. 30 decision, Lougy said that their response alone did not justify the state’s decision to hold back the tax break payments.