A Senate panel has advanced legislation that seeks to provide tax incentives for New Jersey manufacturers. Supported by the New Jersey Business & Industry Association (NJBIA) and the New Jersey Manufacturing Extension Program (NJMEP), the bill aims to encourage investment, create jobs, and establish New Jersey as a leader in manufacturing.
The bill, known as A-5687 and sponsored by Assembly Majority Leader Lou Greenwald, proposes the creation of the "Next New Jersey Manufacturing Program." This initiative would be administered by the New Jersey Economic Development Authority (NJEDA) using $500 million from existing Aspire and Emerge tax credit programs. The Assembly Labor Committee has voted to release this bill.
Christopher Emigholz, NJBIA Chief Government Affairs Officer, testified in favor of the bill, highlighting its inclusion in Governor Phil Murphy’s FY26 budget proposal. Emigholz emphasized that it requires no additional funding and enjoys bipartisan support. He stated: “Manufacturing is important, and we need to get back to making more things in New Jersey and in our country because that’s what makes the economy go.”
Emigholz also noted challenges faced by manufacturers due to federal uncertainty with manufacturing programs, tariffs, and supply chain issues. He described these factors as reasons why this bill is necessary for sustaining an important industry.
Peter Connolly, CEO of NJMEP, addressed over 11,000 manufacturing companies operating across the state during his testimony. He remarked on their contributions through importing, exporting, hiring, creating products, and community involvement. Connolly said: “This bill represents a vital investment in New Jersey’s future... 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.”
The proposed program targets various industries such as advanced manufacturing; non-retail food and beverage; life sciences; defense; and clean energy technologies production including offshore wind and solar energy.
Under this legislation, $100 million of tax credits will be reserved exclusively for clean energy product manufacturers during the first two years. If less than $100 million is awarded within this period, remaining funds may be allocated to other eligible manufacturers in year three.
Eligibility for tax credits requires businesses to make significant capital investments of at least $10 million at a qualified facility in New Jersey while creating at least 20 new full-time jobs with salaries above 120% of local median wages.
The amount of tax credit available will depend on criteria such as total capital investment multiplied by job creation or capped at certain percentages or amounts set forth within the bill. Additionally, NJEDA may offer bonus credit awards under specific conditions.
