New Jersey is easing access to $500 million in tax credits to expand manufacturing and workforce development after the Next New Jersey Manufacturing Program became law on Aug. 13.
The unique financing program, administered by the New Jersey Economic Development Authority (NJEDA), uses funds from unused credits under the Aspire and Emerge programs, which originally offered $6.6 billion in tax credits over their lifespans. About $2 billion of those credits remain uncommitted. That unspent portion will now support the new program while Aspire and Emerge continue under updated guidelines.
Each project may receive tax credits up to $150 million. The amount is the lowest of three calculations:
- 0.1% of capital investment multiplied by the number of new full-time jobs.
- 25% of total qualified capital investment.
- $150 million cap.
Clean energy manufacturers have priority access to $100 million in funds for the first two years. Manufacturers with certifications, such as minority or women business enterprise status or active labor agreements, may also qualify for an additional 5% in stackable credits.
To qualify, manufacturers must:
- Invest, acquire or lease at least $10 million in capital at a qualifying facility in New Jersey.
- Create at least 20 new full-time jobs that pay at least 120% of the median manufacturing salary in the area; employees must be offered health benefits within 90 days and spend at least 80% of their work time in New Jersey.
- Pay prevailing wages during construction.
- Sign an agreement with NJEDA covering financing and site plan approval.
Applications must be submitted before March 1, 2029.
Photo by Tom Swinnen from Pexels
