Gov. Phil Murphy signed a bill Aug. 13 creating a $500 million tax credit program that provides incentives for manufacturing investment and job creation.
The Next New Jersey Manufacturing Program, administered by the New Jersey Economic Development Authority (NJEDA), provides tax credits up to $150 million per project for manufacturers and clean energy producers and reserves $100 million for clean energy businesses in the program’s first two years.
The program provides tax credits to qualifying businesses that invest at least $10 million into New Jersey-based facilities and create at least 20 full-time jobs.
“Since taking office, my administration has advanced policies that create good-paying jobs, attract cutting-edge manufacturers, and expand opportunity in communities across the state,” said Murphy. “The Next New Jersey Manufacturing Program builds on that progress, providing the support needed to accelerate growth, enhance our competitive position, and deliver lasting economic benefits for New Jersey manufacturers.”
The law shifts up to $500 million in previously allocated credits from the Aspire and Emerge programs to fund the new manufacturing initiative, with $100 million set aside during the first two years specifically for clean energy manufacturing. If that allocation is underutilized, the remainder may be made available to other eligible manufacturers in the third year.
The Next New Jersey Manufacturing Program will offer bonuses to companies holding New Jersey business certifications, like minority and women business enterprises, businesses in opportunity zones, or companies that have collective bargaining agreements or labor harmony agreements in place.
The primary sponsors of the bill were Senators Michael Testa and Linda Greenstein, and Assemblymembers Louis Greenwald, Antwan McClellan, and Verlina Reynolds-Jackson.
Business groups applauded the manufacturing initiative.
“This law represents a significant and targeted investment for New Jersey’s manufacturing sector and our economy, with no new additional funding required,” said NJBIA President and CEO Michele Siekerka. “It will support much-needed workforce development in manufacturing amid both federal tariff and supply chain uncertainty that challenges these important businesses.”
Tom Bracken, president and CEO of the New Jersey Chamber of Commerce, said, “This investment reflects New Jersey’s commitment to supporting growth in manufacturing. The Next New Jersey Manufacturing Program aims to encourage innovation, attract new industries, and expand career opportunities in the state. By combining targeted tax incentives with the strengths of our workforce, we’re creating a stronger environment for businesses to build and grow in the Garden State.”
“This bill represents a vital investment in New Jersey’s future, supporting the full spectrum of manufacturing, including the clean energy sectors, while empowering the workforce that drives them,” said Peter Connolly, CEO, New Jersey Manufacturing Extension Program Inc. “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.”
Industry snapshot
The manufacturing sector in New Jersey hosts a wide range of processes and products from food and printing to petroleum and pharmaceuticals.
- In 2023, there were over 252,000 people employed in 10,000 establishments classified as manufacturing in New Jersey.
- The state’s manufacturing industry contributed more than $52.6 billion to the gross state product in 2023, making up 8.8% of the total.
- The average annual wage for manufacturing employees in New Jersey was $96,500, 19.3% above the state average.
- Manufacturing employers paid a total of $24.3 billion in total wages in 2023, 8.2% of all wages paid in the state.
