By Jim Pytell
An NJBIA-supported bill that makes the largest manufacturing investment in state history by creating a $500 million tax credit program exclusively for New Jersey manufacturers was signed into law Wednesday in the South Kearny industrial district.
The Next New Jersey Manufacturing Program, sponsored by co-chairs of the Legislative Manufacturing Caucus, will incentivize investment, create jobs and position New Jersey as a leader in the manufacturing economy. Funding for the program comes from the New Jersey Economic Development Authority’s existing Aspire and Emerge tax credit programs.
“Beyond, attracting global investment, this program will help local companies grow, create jobs and unleash a more prosperous future for our children,” Gov. Phil Murphy said before signing the bill (S-4407) at MAC Products Inc., a longtime family-owned manufacturer that designs and builds electromechanical equipment for mass transit systems, utilities and other businesses.
“By providing targeted incentives, we're not only supporting existing manufacturers but also encouraging entrepreneurs to set roots in New Jersey,” Murphy said. “This initiative represents a strategic step toward revitalizing our manufacturing industry."
NJEDA CEO Tim Sullivan said specifics of the Next New Jersey Manufacturing Program would be available for public comment as soon as next week.
“We’re not going to let any grass grow under this program,” Sullivan said. “We’ll hopefully be taking applications by the end of September (and) making awards by the end of this year – getting this capital on the street where it's needed while there is momentum in manufacturing.”
NJBIA Chief Government Affairs Officer Chris Emigholz, who worked on behalf of New Jersey manufacturers to help get the bill across the legislative finish line, joined the bill’s sponsors – Sen. Michael Testa Jr. (R-1) and Sen. Linda Greenstein (D-14) – at the bill-signing ceremony along with others from the business community who advocated for its passage including Peter Connolly, CEO, of the New Jersey Manufacturing Extension Program (NJMEP).
NJBIA President & CEO Michele Siekerka issued a statement Wednesday thanking the governor for signing the bill.
“This law represents a significant and targeted investment for New Jersey’s manufacturing sector and our economy, with no new additional funding required,” Siekerka said.
“It will support much-needed workforce development in manufacturing amid both federal tariff and supply chain uncertainty that challenges these important businesses,” Siekerka said. “And it will incentivize a wide range of manufacturing activities, including advanced manufacturing, food and beverage production, life sciences, defense, and clean energy component manufacturing.”
Under the program, eligible businesses in manufacturing industries including advanced manufacturing, non-retail food and beverage, defense, clean energy, and life sciences can receive a tax credit award equal to the lesser of 0.1% of the eligible business’s total capital investment multiplied by the number of new full-time jobs or 25% of the eligible business’s total qualified investment, subject to a total cap of $150 million per project.
Under the law, $100 million of the $500 million in tax credits during the first two years of the program is reserved for clean energy product manufacturers, such as solar, geothermal, and green hydrogen. However, if the NJEDA awards less than $100 million in tax credits reserved for clean energy product manufacturers during that two-year period, the uncommitted portion could be awarded to any other eligible manufacturer in the third year of the program.
To qualify for tax credits under the program, an eligible business would be required to:
- Make, acquire, or lease at least $10 million in capital investments at a qualified business facility in New Jersey;
- Create at least 20 new full-time jobs in New Jersey;
- Provide a median salary for the full-time jobs at the qualified business facility of not less than 120% of the median salary for manufacturing employees in the county where the project is located.
"Manufacturing has long been the backbone of New Jersey’s economy, and this historic investment reaffirms our commitment to revitalize this vital sector,” Senator Testa said. “Through targeted incentives, we’re giving manufacturers and entrepreneurs the tools they need to grow, compete globally, and succeed right here in the Garden State.”
Senator Greenstein said the landmark legislation would drive major investments in manufacturing and make New Jersey a role model for the industry. “With the generous tax incentives included, the ‘Next New Jersey’ program will create high-quality jobs and solidify our state’s status as a leader in clean energy manufacturing.”
Connolly said the law supports the full spectrum of manufacturing while empowering the workforce that drives them.
“NJMEP is prepared to stand alongside NJEDA and every business this program attracts to offer targeted training, consulting, and workforce development,” Connolly said. “With this robust support in place, this $500 million incentive can translate into real high-quality jobs and tangible economic opportunity for the people of New Jersey.”
