NJBIA is urging the New Jersey Legislature to finalize a bill during current budget negotiations that would provide tax incentives to eligible manufacturers in the state. The aim is to encourage investment, create jobs, and establish New Jersey as a leader in manufacturing.
The proposed legislation, Bill A-5687 and its Senate counterpart S-4407, seeks to establish the "Next New Jersey Manufacturing Program." This program plans to allocate $500 million from existing Aspire and Emerge tax credits to support in-state manufacturing initiatives and job creation. The New Jersey Economic Development Authority would administer the program.
S-4407 is scheduled for a vote in the Senate Budget and Appropriations Committee on Thursday.
Christopher Emigholz, NJBIA Chief Government Affairs Officer, stated, "This legislation is monumental for manufacturing and the overall business climate in New Jersey." He emphasized that it aligns with New Jersey's "Trenton Makes, the World Takes" motto and noted its bipartisan support within the Legislature’s Manufacturing Caucus. Emigholz added, "We need to get this done."
The proposed program aims to incentivize various manufacturing activities across industries such as advanced manufacturing; non-retail food and beverage; life sciences; defense; and clean energy technology production. Of the $500 million allocated for tax credits, $100 million would be reserved exclusively for clean energy product manufacturers during the first two years of the program.
If less than $100 million in tax credits are awarded for clean energy products during this period, any remaining funds could be distributed among other eligible manufacturers in the third year of the program.
Emigholz clarified misconceptions about the bill: “Let’s be clear – this is not an ‘offshore wind bill’... The clean energy portion only accounts for 20% of the program.” He further explained that nuclear energy is included under clean energy definitions within the bill.
To qualify for these tax credits, businesses must invest at least $10 million at a qualified facility in New Jersey, create a minimum of 20 new full-time jobs with salaries at least 120% of county median salaries for manufacturing employees. Tax credit amounts would be determined based on specific criteria but could reach up to $150 million per eligible business.
