The Next New Jersey Manufacturing Program Act, a bipartisan bill signed into law in August by New Jersey Governor Phil Murphy, has created a tax credit initiative designed to attract wide capital investment, high-quality manufacturing jobs that lead to careers and solidified clean-energy supply chains as permanent fixtures in the New Jersey economy.
The bill (A5687/S4407) requires the New Jersey Economic Development Authority (NJEDA) to administer the program, which will be funded by $500 million in tax credits. The maximum award amount will be $150 million per eligible applicant, with no minimum award amount, and it can award up to 25% of a project’s total capital investment.
When reviewing applications, NJEDA will consider the number of new jobs created (minimum 20), where the jobs are primarily located (80% in-state), and prevailing wage requirements. Successful projects will have a contractual agreement with at least one NJ-based partner investing at least $10 million at an eligible participant facility. Examples include a public/private college or high school, workforce development organization, vocational/technical school, labor organization, employer association, or nonprofit that provides training/apprenticeships.
NJEDA opened applications last week on September 25th, and applications will remain open until the funds are fully committed. Priority industries include:
- Energy/clean energy: components for offshore wind, energy storage, and electrification equipment that can help companies in the energy supply chain locate or scale in New Jersey.
- Construction and equipment manufacturers: large projects requiring significant capital investment and construction activity, such as new facilities and expansions, will generate demand for construction trades, materials suppliers, and equipment manufacturers.
- Agriculture: although the program excludes primary agriculture operations, non-retail food and beverage manufacturers are eligible. These investments will strengthen the local agricultural processing and supply chains, increasing demand for processing and production equipment.
NJEDA is accepting applications through its main portal (www.njeda.gov/nextnjai/), and applicants are encouraged to complete required forms and submit the documentation listed with a detailed capital budget, job projections, wage schedules, evidence of the required collaborative relationship, environmental and labor compliance documentation, and a project timeline. The link provided above also includes a sample packet that can be used to help streamline and clarify the process.
According to the New Jersey Department of Labor, 10,000 manufacturing establishments are currently located in the state, employing roughly 236,000 workers, add an estimated $50–$54 billion to New Jersey’s GDP. The Next New Jersey Manufacturing program builds directly on this strength and could serve as model legislation for other states looking to attract manufacturing jobs.
To learn more about state-level incentives in other states or to get involved in AEM’s advocacy efforts, please reach out to the AEM Advocacy Team at advocacy@aem.org.
