New Jersey has taken a bold step to reestablish itself as a national leader in manufacturing. On Aug. 13, 2025, Gov. Phil Murphy signed into law the Next New Jersey Manufacturing Program, a sweeping $500 million initiative designed to accelerate manufacturing growth in the state.
Overview
The Next New Jersey Manufacturing Program is designed to drive large-scale investment, high-wage manufacturing jobs, and economic development in the Garden State.
Under the program, eligible businesses in manufacturing industries, including advanced manufacturing, non-retail food and beverage, defense, clean energy, and life sciences can receive a transferable tax credit award of up to $150 million, based on their proposed new jobs and capital investment.
Businesses Must Demonstrate all of the Eligibility Criteria
- Manufacturer or clean energy manufacturer planning a minimum $10 million capital investment at a New Jersey manufacturing facility (“qualified business facility”)
- Create at least 20 new full-time jobs, meeting certain wage requirements, for the qualified business facility
- Partner with a New Jersey educational institution or workforce entity to ensure alignment with local talent development
- Comply with minimum environmental and sustainability standards
- Maintain created jobs and facility in New Jersey for 10 years
Funding Details
- Program Funding: $500 million in total tax credits, with $100 million reserved for clean energy manufacturing projects during the first two years.
- Award Calculation: The tax credit award is the lesser of:
- 0.1% of the total capital investment multiplied by the number of new jobs created,
- 25% of the total capital investment, or
- $150 million per project
- Bonus Credits: Up to 5% “stackable” bonuses may be available for businesses that achieve certain criteria, such as qualifying investments in Opportunity Zones, certified New Jersey businesses (e.g., MWBE/VOB), and those with collective bargaining agreements.
- Annual Credit Issuance: Credits are issued over a five-year period, contingent on continued compliance, maintaining jobs, facility operations, partnerships with New Jersey-based educational/workforce organizations, and prevailing wage/green standards. Unused credits may be carried forward for 10 years.
- Transferable Credit: The credits may be sold or assigned.
Application Process & Timing
- Applications are not yet open but are expected to launch soon.
- Rolling submissions will be accepted through March 1, 2029.
- $500 million in tax credits are available on a first-come, first-served basis with $100 million of tax credits reserved for clean energy product manufacturers in the first two years.
- Early engagement is recommended to maximize eligibility, project readiness, and competitive positioning.
Why Act?
This is a rare, large-scale incentive for manufacturers seeking to establish or expand operations. Early planning can help you qualify for the best funding round.
Reach out now to discuss your project’s qualifications.
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