Governor Phil Murphy signed the Next New Jersey Manufacturing Program into law on August 13, 2025. This marks New Jersey’s most significant manufacturing investment in recent history.
The program allocates $500 million in New Jersey manufacturing tax credits. But these aren’t standard tax incentives. They’re transferable, stackable, and designed to reward manufacturers who think long-term.
Why New Jersey is betting big on manufacturing now
The New Jersey Economic Development Authority (NJEDA) has already approved 431 applications through its Manufacturing Voucher Program, distributing over $66.2 million. These companies committed to investing $252.7 million in return, nearly four times the state’s contribution.
That’s the multiplier effect New Jersey wants to replicate at scale.
The state faces increasing pressure from federal tariffs and supply chain disruptions. This program utilizes $500 million from existing Aspire and Emerge credits, redirecting them specifically toward manufacturing job creation and in-state production capacity.
Understanding New Jersey manufacturing tax credits
The credit calculation follows a specific formula. You receive the lesser of three amounts:
- Formula 1: 0.1% of your total capital investment × number of new full-time jobs created
- Formula 2: 25% of your total qualified capital investment
- Formula 3: $150 million (program maximum per project)
Let’s make this concrete. Say your facility plans a $50 million equipment upgrade and will create 100 new positions.
- Formula 1: ($50M × 0.001) × 100 = $5 million
- Formula 2: $50M × 0.25 = $12.5 million
- Formula 3: $150M (not applicable)
You’d receive $5 million in New Jersey manufacturing tax credits under this scenario.
The clean energy carve-out creates first mover advantage
$100 million in tax credits during the first two years are reserved exclusively for clean energy product manufacturers. This includes solar, geothermal, and green hydrogen production.
After two years, unused clean energy credits roll into general manufacturing allocation. This creates a window where clean energy manufacturers face less competition for funds.
If your facility produces components for renewable energy systems, you’re competing for a smaller pool initially. That improves your odds significantly.
Bonus credits stack and they add up fast
The base credit is just your starting point. New Jersey offers stackable bonuses for companies holding state business certifications, operating in Opportunity Zones, or maintaining collective bargaining agreements.
These bonuses can add up to 5% to your total credit. On a $10 million award, that’s an additional $500,000.
Bonus eligibility categories:
- Minority and Women Business Enterprises (MWBE) certification
- Veteran-Owned Business (VOB) certification
- Opportunity Zone location
- Collective bargaining or labor harmony agreements
Multiple bonuses can apply simultaneously. A MWBE-certified manufacturer in an Opportunity Zone with union representation qualifies for multiple stacked benefits.
What “Qualified Business Facility” actually means
Your project must center on a physical manufacturing facility in New Jersey. The minimum capital investment threshold sits at $10 million.
Capital investment includes:
- Manufacturing equipment and machinery
- Facility construction or expansion
- Technology systems supporting production
- Technology systems supporting production
It excludes
- Working capital
- Inventory
- Non-manufacturing administrative spaces
The facility must remain operational in New Jersey for 10 years. This isn’t a short-term play.
Job creation requirements go beyong headcount
You must create at least 20 new full-time positions. But quantity isn’t enough, these positions must meet specific wage requirements.
The program emphasizes “good-paying jobs“. While exact wage thresholds aren’t published yet, expect them to align with prevailing wage standards for manufacturing in New Jersey.
The program also requires partnerships with New Jersey educational institutions or workforce entities. This ensures your hiring connects with local talent development infrastructure.
Environmental standards are non-negotiable
Every participating facility must comply with minimum environmental and sustainability standards. These requirements recognize that modern manufacturing success depends on sustainable practices.
Expect documentation requirements around:
- Energy efficiency measures
- Waste reduction protocols
- Emissions management
- Water conservation practices
Green manufacturing isn’t just good for New Jersey manufacturing tax credits eligibility, it’s increasingly what customers demand.
Credits are issued over five years not upfront
Your total credit award gets distributed over a five-year period. Annual disbursements depend on continued compliance.
You must maintain:
- Required job levels
- Facility operations in New Jersey
- Educational/workforce partnerships
- Prevailing wage standards
- Environmental compliance
Fail any requirement, and that year’s credit is forfeited. This structure protects taxpayer investment while ensuring manufacturers deliver promised benefits.
The transferability feature changes everything
These credits are transferable, meaning you can sell or assign them.
For manufacturers without sufficient tax liability to use credits immediately, transferability creates liquidity. You can monetize credits through sale to companies with tax liability.
This transforms credits from future tax savings into current capital, exactly what growing manufacturers need.
Unused credits can be carried forward for 10 years, providing additional flexibility for facilities with variable tax liability.
Applications open soon on first-come, first-served basis
The NJEDA has started accepting rolling applications on September 25, 2025 and will be doing so through March 1, 2029. But the $500 million pool operates first-come, first-served.
Early applications have strategic advantages:
- Less competition for available funds
- More time to gather documentation
- Ability to adjust project plans based on feedback
Projects already in planning stages should accelerate preparation. Every month of delay means more competitors enter the queue.
What should manufacturers do right now?
- Assess project timing: Can you reach the $10 million capital investment threshold? Do you have expansion plans that could be accelerated?
- Review workforce plans: Will you create at least 20 new positions? How do wages compare to prevailing standards?
- Identify partnership opportunities: Which New Jersey educational institutions or workforce programs align with your hiring needs?
- Document sustainability measures: What environmental standards does your facility already meet? Where can you strenghten compliance?
- Calculate potential credits: Run the formulas with your actual investment and job creation numbers. Understand your realistic award range.
The strategic context: Why this matters beyond tax savings
New Jersey positions itself as having “the most diverse and inclusive innovation ecosystem in the nation“. This program advances that vision through targeted manufacturing support.
For manufacturers, New Jersey manufacturing tax credits represent more than tax relief. They signal where the state is investing infrastructure, workforce development and regulatory support.
Facilities that establish themselves now gain access to an ecosystem being actively built around manufacturing success.
Next steps for your facility
The NJEDA has opened applications, but thoughtful preparation determines success.
Companies that win competitive funding programs share common traits: they start early, document thoroughly and align projects with program priorities.
Ready to explore how your facility qualifies for New Jersey manufacturing tax credits?
Our team helps manufacturers structure projects, maximize credit calculations and navigate application requirements for programs like Next New Jersey Manufacturing.
