Gov. Phil Murphy, as part of a continuing effort to expand the state’s manufacturing sector and increase its impact in all things supply chain, announced Thursday that the state is adding an additional $20 million to boost the New Jersey Manufacturing Voucher Program.
The funding, which was included in the Fiscal Year 2024 budget, brings the funding for the program to $53 million.
The increase marks the second time the popular program has been expanded. Originally funded with $20 million from the FY2023 budget, the program got an additional $13.75 million in March.
The program, developed as a pilot program by the New Jersey Economic Development Authority in 2022, provides manufacturers with vouchers to purchase equipment they need to improve their operations and upgrade their businesses.
Since the program’s launch, the EDA has awarded 189 vouchers totaling $23.4 million to manufacturers across New Jersey.
EDA officials said they continue to process and approve applications for the oversubscribed program on a daily basis. The additional funding will allow the EDA to fulfill applications that were submitted after the program was oversubscribed and launch Phase II of the program, with a date to be announced in the coming months.
How it works
The Manufacturing Voucher Program offers vouchers valued at 30-50% of the cost of eligible equipment, including installation, up to a maximum award amount of $250,000.
The program focuses on manufacturers within targeted industries that will use purchased equipment to integrate innovative technologies, processes and materials to improve the efficiency and productivity of their manufacturing business. Both for-profit and not-for-profit companies are eligible for vouchers.
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“New Jersey’s manufacturers are critical to our economy and nation’s supply chain,” Murphy said. “The Manufacturing Voucher Program is a proven success, and this additional funding will help even more businesses modernize and become more efficient and profitable.”
EDA CEO Tim Sullivan applauded the announcement — and reiterated support for the sector.
“Throughout Gov. Murphy’s tenure, New Jersey has prioritized strategies that support and bolster our manufacturing sector by ensuring companies have the resources and capital needed to continue making products used by consumers domestically and abroad,” he said.
“I thank Gov. Murphy and the Legislature for passing a budget that will further enable us to meet the needs of additional New Jersey manufacturing companies, which in turn will grow our economy, and strengthen our supply chain.”
In line with the administration’s vision to create a diverse and inclusive innovation ecosystem, the New Jersey MVP offers stackable bonuses for certified woman-, minority- or veteran-owned businesses.
The stackable bonuses are also available for businesses in Opportunity Zones, businesses purchasing equipment within New Jersey, manufacturers that have a collective bargaining agreement and small companies with less than 100 full-time equivalent employees.