TRENTON, NJ – Governor Phil Murphy is expected to sign Assembly Bill 5687 into law on Wednesday, launching the “Next New Jersey Manufacturing Program,” a sweeping new initiative designed to attract major capital investment and job creation in the manufacturing and clean energy sectors.
The program, overseen by the New Jersey Economic Development Authority (EDA), provides significant tax credits to qualifying businesses that invest at least $10 million into New Jersey-based facilities and create no fewer than 20 new full-time jobs. The new law also modifies aspects of the state’s existing Economic Recovery Act of 2020.
To qualify, participating businesses must pay new employees a median salary of at least 120% of the county median for manufacturing jobs, obtain site plan approval, commit financing, and maintain site control. The legislation defines eligible businesses broadly, including traditional manufacturers and clean energy product manufacturers — those producing components for sectors such as wind, solar, battery storage, and hydrogen.
Tax credits under the program are capped at $150 million per project, and limited to the lesser of three calculations based on capital investment and job creation. Bonus tax credit awards may also be granted at the EDA’s discretion.
Importantly, the law allows businesses to apply for tax credit transfer certificates — which can be sold or assigned — with a minimum transaction size of $25 million, up from the original $25,000 threshold. Credits must be sold for no less than 85% of their face value, excluding discounts for present value.
The law redirects up to $500 million in previously allocated credits from the Aspire and Emerge programs to fund the new manufacturing initiative, with $100 million set aside during the first two years specifically for clean energy manufacturing. If that allocation is underutilized, the remainder may be made available to other eligible manufacturers in year three.
The EDA is tasked with issuing regulations for program administration and eligibility criteria for bonus awards.
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Key Points
- Governor Phil Murphy to sign A5687, creating the “Next New Jersey Manufacturing Program”
- The program provides tax credits up to $150M per project for manufacturers and clean energy producers
- $100M is reserved for clean energy businesses in the program’s first two years
