NJBIA supported legislation advanced by an Assembly committee today to provide temporary tax credits for New Jersey manufacturers who produce hospital gowns, masks, gloves and other personal protective equipment (PPE) to prevent the spread of COVID-19 and other illnesses.
The legislation, S–3015/A-4840, is designed to ensure New Jersey has a sufficient supply of PPE to protect medical workers and others, while also supporting the creation of manufacturing jobs. The Assembly Appropriations Committee approved the bill and sent it to the full Assembly for final passage.
NJBIA Vice President of Government Affairs Christopher Emigholz thanked the bill’s sponsors, Senate President Steve Sweeney (D-3), New Jersey Legislative Manufacturing Caucus Chair Sen. Linda Greenstein (D-14) and Assemblyman John Burzichelli (D-3), for their work on the legislation.
“This is a win-win bill that will both support manufacturers and better prepare New Jersey for the current and any future emergency with an in-state supply of PPE,” Emigholz said. “Encouraging manufacturing in New Jersey has been shown to have a multiplier effect on the economy and be a significant component of an innovation ecosystem that we all want for our economy to succeed.”
Under the bill, the state would offer corporation business tax and gross income tax credits to taxpayers and businesses that create jobs manufacturing PPE such as coveralls, face shields, gloves, gowns, masks, respirators, and other equipment designed to protect the wearer from infection.
The bill establishes a credit of $10,000 for the creation of each new job plus potential bonuses, through 2022. The jobs would have to be full-time positions with health insurance and with wages subject to income tax withholding.
The maximum yearly credit for any individual taxpayer would be $500,000, and the overall annual cap on the statewide program would be $10 million. The Department of Health would provide consultation on the specific requirements for the products.