Gov. Phil Murphy today signed bipartisan bill to create the Next New Jersey Manufacturing Program, a new $500 million tax credit program aimed at incentivizing investment and job creation in the state’s manufacturing industry.
The program will be administered by the New Jersey Economic Development Authority (NJEDA) and is designed to provide long-term benefits to manufacturing companies by offering tax credits to eligible businesses in key industries, including advanced manufacturing, clean energy, life sciences, defense and non-retail food and beverage.
Murphy highlighted the historic role of manufacturing in New Jersey’s economy. “Manufacturing continues to play a vital role in shaping New Jersey’s economy and its future,” he said. “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.”
NJEDA CEO Tim Sullivan echoed this sentiment, stating the program will encourage manufacturers to “establish and grow successful operations in New Jersey, producing impactful economic benefits for the state and its residents for generations to come.”
Key program incentives and goals
Under the new program, eligible businesses can receive a tax credit award capped at $150 million per project. This award is calculated based on a percentage of the business’s total capital investment and new full-time jobs.
In a move to support the state’s clean energy goals, $100 million in tax credits will be reserved during the first two years specifically for manufacturers of clean energy products such as solar, geothermal and green hydrogen.
The program also includes stackable bonuses for certified businesses, including Minority and Women Business Enterprises and companies with collective bargaining agreements in place, aligning with the Governor’s vision for a diverse and inclusive innovation ecosystem.
Support from state leaders
The legislation received bipartisan support, with primary sponsors including Senators Michael Testa and Linda Greenstein, and Assemblymembers Louis Greenwald, Antwan McClellan, and Verlina Reynolds-Jackson. Senator Testa described the program as an “historic investment” that will help “revitalize this vital sector.”
“This investment reflects New Jersey’s commitment to supporting growth in manufacturing,” Tom Bracken, president and CEO, New Jersey Chamber of Commerce said. “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 law represents a significant and targeted investment for New Jersey’s manufacturing sector and our economy, with no new additional funding required,” Michele Siekerka, president and CEO, New Jersey Business & Industry Association, said. “It will support much-needed workforce development in manufacturing amid both federal tariff and supply chain uncertainty that challenges these important businesses. And it will incentivize a wide range of manufacturing activities, including advanced manufacturing, food and beverage production, life sciences, defense, and clean energy component manufacturing. NJBIA thanks Governor Murphy for signing this important bill into law, as well as overwhelming bipartisan support within the Legislature. Let’s get to work.”
“New Jersey’s manufacturers are the backbone of our economy, and this program provides the kind of bold, targeted investment needed to keep them competitive in a rapidly changing economic landscape. By prioritizing innovation, job creation, and in-state capital investment, the Next New Jersey Manufacturing Program sends a clear message: our state is serious about building things here at home and supporting manufacturers up and down the state. We commend Governor Murphy for his leadership on this critical issue,” Christina Renna, president & CEO, Chamber of Commerce Southern New Jersey said.
“As the ‘Medicine Chest of the World,’ New Jersey relies on a strong manufacturing ecosystem to produce highly advanced, technologically sophisticated, and life-saving biopharma and medical device products,” Chrissy Buteas, CEO, HealthCare Institute of New Jersey, said. “These products—from cell and gene manufacturing to complex metallurgic bone mesh implants to radioligand therapeutic products—are made in New Jersey because of our skilled, well-trained workforce and incentives like the Next New Jersey Manufacturing Program Act.” Buteas added, “New Jersey’s life sciences commend the bill’s sponsors and the Governor for their leadership and vision to grow New Jersey manufacturing and create jobs.”
