This bill establishes a corporation business tax credit for taxpayers who invest in manufacturing equipment or renovate, modernize, or expand manufacturing facilities located in State-designated Smart Growth Areas. The credit, applicable for privilege periods starting from January 1, 2024, to January 1, 2026, allows taxpayers to claim 10% of the costs associated with new manufacturing equipment, facility improvements, or the hiring and training of new full-time employees retained for at least 365 days. The bill specifies that the credit for employee training can be the greater of 10% of training, salary, and benefits or the existing deduction available under current law. Additionally, any unused credit can be carried forward for up to seven privilege periods.

The bill also clarifies that expenditures eligible for this new credit will not qualify for other existing tax credits related to job creation and manufacturing investments. It defines key terms such as "manufacturing equipment," "manufacturing facility," and "qualified manufacturing related job training," ensuring clarity on what qualifies for the credit. Furthermore, the Director of the Division of Taxation is mandated to submit a report by January 1, 2027, detailing the credits allowed, the number of qualified employees, and an analysis of the credit's effectiveness in promoting new manufacturing employment.