On August 13, 2025, Governor Phil Murphy signed the Next New Jersey Manufacturing Program into law, establishing a $500 million refundable tax credit initiative designed to stimulate manufacturing investment and job creation across the state. For manufacturers and distributors operating in New Jersey or planning to expand, this program provides a compelling opportunity to support facility investments and encourage job creation.
How Much is the Tax Credit Worth?
Eligible businesses can receive a tax credit equal to the lesser of:
- 0.1% of the eligible business’ total capital investment multiplied by the number of new full-time jobs
- 25% of the eligible business’s total qualified investment, with a maximum award of $150 million per project.
This structure rewards scale and workforce development, making it especially attractive for firms planning multi-phase expansions or new facility builds.
$100 million is reserved for clean energy manufacturing during the first two years, with the remaining funds to be awarded on a rolling basis until fully allocated.
Who is Eligible for the NJ Manufacturing Tax Credit?
To qualify, businesses must meet the following criteria:
- A minimum $10 million capital investment at a New Jersey facility
- Creation of at least 20 new full-time jobs at that location
- Meet minimum pay requirements and offer health benefits
- A formal partnership with a New Jersey–based labor organization, employer association or nonprofit that provides workforce training or apprenticeships
Eligible sectors include advanced manufacturing, non-retail food and beverage, defense, clean energy and life sciences.
More information regarding program eligibility is available on the NJEDA website.
When Will Applications Open?
Applications have not yet opened, but NJEDA is expected to release formal guidance soon.
Early preparation is essential. Businesses evaluating expansion or relocation should begin assessing capital investment plans, workforce development partnerships and facility eligibility to ensure readiness once the program launches.
Strategic Next Steps for Manufacturing and Distribution Firms
To maximize the benefits of this incentive, firms should start aligning their internal planning with the program’s requirements.
Recommended next steps include:
- Reviewing upcoming capital projects for eligibility
- Forecasting job creation and wage benchmarks
- Identifying potential workforce training partners
- Modeling potential credit value and ROI
Tailored Guidance for M&D Businesses
Grassi’s Manufacturing & Distribution advisors provide strategic support to help businesses navigate complex incentive programs and optimize investment decisions. For more tailored guidance on how Grassi can help assess eligibility, model credit value or prepare for application rollout, reach out to a Grassi advisor or contact:
Robert E. Grote
Joseph Carnevale
Frequently Asked Questions (FAQs)
What is the Next New Jersey Manufacturing Program? A $500 million refundable tax credit initiative was signed into law in August 2025 to support manufacturing investment and job creation in New Jersey.
Who qualifies for the NJ manufacturing tax credit? Businesses that invest at least $10 million and create more than 20 full-time jobs at a New Jersey facility. Eligible sectors include advanced manufacturing, clean energy, life sciences, defense and non-retail food and beverage.
What is the maximum credit available? Up to $150 million per project, based on either 0.1% of investment multiplied by the total number of new jobs or 25% of total qualified investment.
When will applications open? NJEDA is expected to release formal guidance soon.
