Next New Jersey Manufacturing Program Overview and Incentives

On August 13, 2025, Governor Phil Murphy signed into law the Next New Jersey Manufacturing Program, which provides a new, exciting opportunity for manufacturers in New Jersey. The program is funded with $500 million of tax credits reallocated from New Jersey’s Aspire program (created to stimulate economic growth and real estate development in the state) and Emerge program (a tax incentive program designed to support job creation and large-scale job retention). Notably, while programs like Aspire and Emerge require an applicant to prove that they would not locate or expand in the state without the credit, the Next NJ Manufacturing program does not require a “but-for” argument and is based on objective eligibility criteria.

Eligibility

To be eligible for the Next NJ Manufacturing program, a project must:

• Invest at least $10 million in a business facility
• Create at least 20 new full-time jobs
• Be primarily engaged in manufacturing (>50%)
• Pay full-time workers a median salary at least 120% of the county's median salary for manufacturing
• Keep the facility as a qualified business facility during the commitment period (a period no less than two times the eligibility period specified in the project agreement, i.e., generally 10 years)
• Enter a collaborative relationship with a New Jersey-based school, college, workforce organization or similar group
• Meet environmental and sustainability standards
• Follow affirmative action requirements
• Pay workers at least the prevailing wage rate for construction or building services

For reference, the chart below shows the current county median salary wage requirement for new full-time jobs:

Benefits

Applicants can claim tax credits over five years, based on the lesser of:

1. 0.1% of total capital investment * number of new full-time jobs created
2. 25% of the total qualified capital investment
3. $150 million (per project maximum)

As an example, if a company is investing $25 million in capital investment and creating 125 jobs, they would be eligible for a $3.125 million credit,  calculated as the lesser of:

1. $3.125 million (0.1% * $25M * 125)
2. $6.250 million (25% * $25M)
3. $150 million

In addition, a project can earn up to an additional 5% of the base credit amount if the project involves the following:

• Opportunity Zone Eligible Census Tract
• New Jersey Business Certifications:
  
  • NJ Minority-Owned Business or Enterprise
  • NJ Woman Business Enterprise 
    
    • Note: Minority/Woman-Owned Business or Enterprise would be eligible for 2% stackable bonuses
  • NJ Veteran-Owned Business or Disabled-Veteran-Owned Business
  • NJ Small Business Enterprise
  • NJ Emerging Small Business Enterprise or Disadvantaged Business Enterprise
  • NJ Lesbian, Gay Bisexual, Transgender, Queer, Questioning
  • NJ Urban Enterprise Zone
  • NJ Socially and Economically Disadvantaged Business
• At least one Active Collective Bargaining Agreement or Labor Harmony Agreement in place

Another major benefit of this program is that the credit may be transferred at not less than 85% of face value. This ensures a company will realize the benefits even if it does not have sufficient tax liability to use the credit, which is significant for manufacturers who may not have a tax liability due to other tax benefits, such as full expensing provisions. A purchaser can apply the credit in the year of issuance or any of the next three tax periods, and unused amounts can be carried forward up to 10 years.

Preferential Treatment for Clean Energy Product Manufacturers

During the first two years of the program, the first $100 million of the $500 million allotment is reserved for “clean energy product manufacturers,” defined as:

A manufacturer of components specifically for renewable energy, such as offshore and onshore wind, solar, geothermal, green hydrogen, fuel cells, battery storage, or clean energy manufacturing for nuclear energy. “Clean energy product manufacturer” does not include businesses engaged in the production or assembly of components specifically for combustion-based energy generation.

Application and Compliance

The New Jersey Economic Development Authority (NJEDA) is accepting applications on a first-come, first-served basis through March 1, 2029, or until all the funds are committed, whichever comes first. Once an application receives NJEDA Board approval, the eligible business must sign an approval letter and subsequently an agreement with the Authority as to the terms and conditions to receive the tax credit. The company will have three years, with two six-month extensions available, to meet the capital investment and job creation requirements of the program.

The eligible business must submit a certification by a qualified independent certified public accountant relating to capital investment, which will serve as the basis of the calculation of the credit by the Authority. Thereafter, annual reporting is required for each year of the commitment period. Failure to maintain commitments may result in proportional reduction, forfeiture, or recapture.

Conclusion

The Next New Jersey Manufacturing Program is a comprehensive tax credit initiative designed to attract substantial investment, create new jobs, and position New Jersey as a leader in the modern manufacturing economy. Please reach out to Site Selection Group if you would like to discuss whether your company may qualify for this lucrative, transferable credit.